In continuation to the implementation of Saudi payment system development strategy, SAMA has launched the "SADAD Account" service to provide a secure online payment option without the need to use bank cards or cash. The service involves debiting directly the customer's e-commerce SADAD account and crediting the merchant's account.
On this occasion, SAMA held a press conference on Tuesday, 12-7-1437H (19-4-2016) to announce the launch of the service. The conference was attended by H.E. the Governor, Dr. Fahad Almubarak; H.E. Vice Governor, Mr. Abdullaziz Alfuraih; Deputy Governor for Banking Operations, Mr. Hashim Alhugail; and Director-General of Payment Systems Department, Mr. Abdulmalik Al-Shihk. The conference discussed the service and its mechanism in details.
In his remarks, Dr. Almubarak welcomed the journalists attended the conference and confirmed that SADAD Account service will directly foster the national economy in the transition towards a digital one. Digital economy achieves economic efficiency and offers various advantages, including the enhancement of e-commerce infrastructure and support of online small businesses in accordance with the Kingdom's orientation represented in the National Transformation Program, and SAMA vision of e-transaction and cashless society.
Dr. Almubarak said that SAMA had build, through SADAD system, a central platform to link banks and stores together in a key step that aims at automating payment methods and involves innovative ideas to increase digital payment in the Kingdom.
The banks currently offering this service are the National Commercial Bank (NCB), Samba Financial Group, Riyad Bank, Saudi British Bank (SABB), AlJazira Bank, Al Rajhi Bank, Arab National Bank (ANB), and Saudi Investment Bank (SAIB).
Dr. Almubarak has also said that SADAD Payment System, which currently provides bill payment services, is witnessing a new phase by providing innovative e-commerce solutions. SADAD Account will be the main local channel for payment of online purchases and a flexible platform to offer various ideas in the future. This account can be opened easily at any member bank through their electronic services. Upon registration, the user will be provided with a user name and password to be used when shopping at member stores.
Dr. Almubarak has expected that the mechanism developed to include the concept of service providers in the activation process will accelerate stores linking. Service providers are local systems offering payment service through SADAD Account to stores in order to promote the use of SADAD payment system as a real-time and secure payment method. In addition, an exhibition for the service providers will be launched next week.
Dr. Almubarak has also asserted that SADAD Account service will significantly promote e-commerce market. The service will ensure a secure and smooth collection of payments by stores through avoiding money transfers or payment on delivery which usually involve delays and difficulties.