Digital methods dominate remittance landscape as users prioritize security, ease of use, and privacy.
Riyadh, Saudi Arabia — Visa’s annual “Money Travels: 2024 Digital Remittances Adoption” report has revealed a significant rise in the use of digital remittance services among senders in Saudi Arabia. As international outward payments from the Kingdom reach over $38 billion annually, the report highlights that digital platforms are fast becoming the preferred method for sending money abroad.
According to the survey, the key motivations for sending remittances from Saudi Arabia are providing regular financial support to families overseas, addressing family emergencies, and contributing to health and education expenses. Respondents also noted their desire to help during global crises.
Conducted with nearly 45,000 global respondents, Visa’s study emphasizes the growing demand for fast, easy, and secure money transfer methods. In Saudi Arabia, over 59% of users reported that they expect to use digital money transfers more frequently in the coming year. By contrast, only 32% of respondents foresee using physical methods, such as cash or money orders, as often, underscoring a shift toward digital solutions.
Despite a global decline in remittances, the frequency of international payments in Saudi Arabia remains high, with 87% of respondents planning to send money at least once a year, and 73% expecting to receive money annually.
Ali Bailoun, Visa’s General Manager for Saudi Arabia, Bahrain, and Oman, highlighted the country’s crucial role as a top remittance-sending market: “Visa is collaborating with our partners in the Kingdom to streamline the process, making international transfers faster, safer, and easier. Innovations such as Generative AI can enhance the security and convenience of cross-border payments, meeting the evolving needs of consumers in Saudi Arabia.”
Key findings from the report include: Digital payments dominate: Ease of use, privacy, and security are the primary reasons for preferring digital remittances in Saudi Arabia.
Decline in physical remittances: Fewer senders are relying on traditional methods like cash and money orders, reflecting the growing appeal of digital platforms.
Fee concerns: Over 33% of senders and 29% of recipients expressed dissatisfaction with fees, and many found exchange rate calculations confusing.
Hidden fees in physical transfers: 42% of respondents encountered unexpected fees when sending cash or money orders, despite initial claims of free transfers.
Visa is working with global partners such as Brightwell, Thunes, Remitly, and Western Union to facilitate seamless digital transfers. In Saudi Arabia, Visa has introduced its Alias Directory, allowing users to transfer money internationally using only phone numbers, simplifying the process and reducing the need for complex account details.
For more information on Visa Direct and the full report, visit: Money Travels Report 2024.
Survey Methodology: The survey was conducted by Morning Consult from December 2023 to March 2024 with over 40,000 respondents across North and Latin America, Europe, the Middle East, and Asia Pacific. Respondents were weighted by age, race, gender, education, and region based on census data.
