High Fees and Security Issues Slow Digital Wallet Adoption Among Saudi Businesses, But Consumer and Cross-Border Use Grow

Recent surveys by PYMNTS Intelligence and TerraPay reveal a shifting digital payments landscape, especially in Saudi Arabia. While global consumer interest in digital wallets for cross-border payments is rising—driven by speed, ease of use, and lower fees—Saudi small and medium-sized enterprises (SMEs) remain cautious. Key barriers for businesses include high transaction fees, greater than traditional payment methods, as well as concerns about security and lack of transparency. This has resulted in slower business adoption compared to strong uptake among individual consumers, who benefit from lower fees and improved cross-border capabilities. The reports also highlight that only half of U.S. banks allow wallet transfers, citing complexity and security concerns. In contrast, Azerbaijan’s digital payment sector is rapidly growing on the back of instant payments and blockchain innovation, though facing strict regulatory challenges. Saudi Arabia is pushing significant investments in emerging fintech, AI, and Web3 infrastructure to modernize its economy. For broader business adoption, fintech providers are encouraged to lower fees, improve transparency, and focus on instant and cross-border features. This evolving situation signals increased competition between traditional finance and fintech, paving the way for greater blockchain and crypto payments use—provided key adoption barriers are addressed.