Saudi Arabia -based companies are facing a rising climb Digital wallet Adoption, with a new report that quotes high fees as a significant stumble.
A new survey shows that the region’s small and medium -sized companies (small and medium -sized companies) are reportedly hesitates to embrace digital wallet -based payments for goods and services. The survey, conducted by Pymts Intelligence and Global Payment Solutions Terrapay, showed almost 3,700 Saudi -based consumers and 63 companies with transaction volumes over $ 10 million over the past year.
The survey results, explored in ”Global Money Movement: Saudi Arabia Edition“Study found that a number of factors prevent the company’s adoption of digital wallets in Gulf Nation. The respondents say that high transaction fees are stifling adoption metrics for small and medium -sized companies in the country.
Compared to traditional Payment offersMany respondents say that digital wallet transaction fees are higher despite the benefits for faster settlement times.
Another reason for Saudi Arabia’s low measurement values revolves around security problems in connection with fintech solutions. The report also cites concerns about openness as another obstacle to SMEs in Saudi Arabia.
Despite the excursion for reasons provided by the respondents, the report stated that individual consumers do not repeat the same problems. Adoption of digital wallet Among individuals is a maximum time in Saudi Arabia, where consumers quote cross -border transaction benefits and low fees.
The report requires that providers of fintech service to re -evaluate their offers for both demographics to rationalize the strong differences between individual consumers and companies. A comprehensive effort to lower trade space for trade and a pressure to offer cross -border payment functions can trigger a peak in the adoption rate.
The report also advocates immediate transfers for companies and increased transaction opening unit.
While adoption of digital payment is moving forward in a snail speed for Saudi companies, companies make a game to embrace the next gene technology. According to a Cisco report, 93% of the companies have rolled out Advanced strategies To integrate artificial intelligence (AI) into their internal business.
In addition, Gulf spends State $ 40 billion on educating their citizens on new technologies. On the web3 front, Saudi Arabia plays catch-up with the United Arab Emirates after Hong Kong-based Animoca brands have set up operations there.
Digital payments collect steam in Azerbaijan
Elsewhere, a new report from Asia Development Bank (ADB) predicts a top in the number of digital payment users in Azerbaijan before the end of the year.
ADB is stated in its Report The one -third of Azerbaijan’s adult population will start using digital payment offers for their financial needs. It links the estimated figure of 3.85 million people and translates to a two -digit percentage from current levels.
A number of factors, including rapid sector Innovation, will drive incoming inflow of digital payment users. ADB says that the immediate payment system (IPS) created by Azerbaijan’s central bank will significantly increase the number of new digital payment users.
Since its launch, IPS has driven the limits for digital payments and reduced dependence on cash and facilitates real -time transfers from real time. While IPS’s adoption levels have been nothing but impressive, ADB predicts a meteoric nail with new users.
For one, 19 banks have been on board and more financial units signal interest in being on board. An IPS integration with the state state bureau and Azerpost, the National Postal Agency, is tipped to trigger a completely new demographic for the immediate payment platform.
In addition, many technical innovations, including functionalities and an electronic knowledge management system for remote -mediation, will operate a new wave of users.
Groundbreaking financial institutions turns to Blockchain technology for faster settlementsWhile other Azerbaijan-based units are investigating new payment solutions.
“In addition, the banks have expanded the use of tokenization technology and the issuance of virtual payment cards among innovative payment solutions, while four banks launched an Apple Pay project in 2021,” ADB said.
To increase the financial inclusion meters, banks in mainstream with a “Basic Banking Services” project that offers free bank accounting and issues usage cards. Since the initiative’s launch, over 1.5 million Azerbaijan has joined the financial system.
Under the driving force to improve the economic inclusion in Azerbaijan, web3 is with unbanked residents turning to blockchain-based digital wallets. Growing digital asset activity led to azerbaijan introduction of tax requirements For the new industry while investigating cases in the real world.
Stiff regulations from the Central Bank in Azerbaijan, however, will affect the increase in blockchain-based payments. There is also the slow rate of integration from traditional banking institutes, which potentially affects Azerbaijan’s assertion of its share of a trillion $ 3 trillion Global Digital Payments Revenue.
See: New Age of Payment Solutions
https://www.youtube.com/watch?v=W4varzerwuw Title = “Youtube video player” Ramborder = “0” Allow = “Accelerometer; Autoplay; Clipboard writing; encrypted media; Gyroscope; Image-in-Bild; Web Dividend” Reference Policy = “Strict-Origin-When-Cross-Origin” Allowing Lorscreen = “>”