Visa Direct widens Saudi reach as transfers surge

Visa Direct is expanding its Saudi Arabia footprint as digital money transfers accelerate, with card-based transaction volumes in the kingdom rising by more than 50 per cent year on year, according to Visa.

The growth reflects stronger demand from consumers and financial institutions for faster domestic and cross-border payments, particularly remittances, as Saudi Arabia’s payments market continues shifting towards digital channels. Visa said the expansion of its money-movement network is being supported by banks, fintech companies and other payment providers seeking broader access to cards, accounts and digital wallets.

The company’s latest Saudi data comes against a backdrop of rapidly increasing electronic payment usage. The Saudi Central Bank said electronic payments accounted for 85 per cent of all retail payments in 2025, up from 79 per cent a year earlier. The number of electronic transactions rose to 14.6 billion from 12.6 billion, driven by higher activity across the mada network and other national payment systems.

Visa Direct is designed to move funds between eligible cards, bank accounts and digital wallets, covering person-to-person transfers, business payments, disbursements and remittances. Visa says its global platform can reach more than 195 countries and territories, handle more than 150 currencies and connect to billions of eligible endpoints.

Saudi Arabia has become an important market for the service because of its large expatriate workforce and substantial outbound remittance flows. Visa has been expanding direct-to-account capabilities alongside card-based transfers as banks seek to offer customers more choice in how money is received overseas.

Alrajhi bank and Visa expanded their partnership in 2025 to enable customers in Saudi Arabia to send funds directly to bank accounts in more than 30 countries through Visa Direct. The arrangement built on an earlier service allowing near real-time transfers to Visa cards and targeted major remittance corridors including India, Pakistan, Egypt, Bangladesh, the Philippines, Indonesia and Nepal.

The broader shift towards digital remittances has also been reflected in consumer behaviour. A Visa survey published in 2025 found that more than half of respondents in Saudi Arabia preferred sending remittances through digital applications. Security, privacy and speed were among the most frequently cited reasons for choosing digital channels, while ease of use was another significant factor.

Demand for faster transfers is not limited to remittances. Saudi financial institutions are also increasing investment in instant-payment infrastructure and corporate money movement as businesses seek quicker settlement, better visibility and reduced reliance on manual processes.

Saudi Central Bank data showed that the value of transactions through its instant transfer system reached about SR7 trillion in June 2026, up 26.1 per cent from SR5.5 trillion a year earlier. Customer payments rose to roughly SR1.6 trillion, while interbank payments accounted for about SR5 trillion.

Visa’s broader money-movement business has also been growing globally. The company said Visa Direct transactions increased 21 per cent year on year in its fiscal third quarter of 2026, reaching about four billion transactions. Visa has been widening the range of use cases across consumer, commercial and platform payments as competition intensifies among card networks, banks and financial-technology companies.

The Saudi expansion sits alongside other investments by Visa in the kingdom’s payment infrastructure. The company has moved parts of its acceptance technology onto locally hosted cloud infrastructure and has been working with banks and payment service providers on digital commerce, contactless acceptance and cross-border services.

Saudi Arabia’s payments policy has focused on reducing cash use and expanding electronic transaction infrastructure under Vision 2030. The central bank has continued licensing fintech providers, developing open-banking services and supporting national payment systems while maintaining regulatory oversight of digital financial products.

Visa has said the appeal of Visa Direct rests on giving banks and payment providers a single connection for multiple forms of money movement rather than requiring separate arrangements for each destination or payment rail. Actual transfer speed, however, can vary depending on the receiving institution, market, account type and compliance checks.