Visa, a world leader in digital payments, announced Sunday that it has partnered with mada, the national payment scheme, to bring Saudi consumers mada Pay, the first mobile payment solution that supports contactless (NFC) transactions to launch in the Kingdom.
mada Pay is an Android-based mobile application that enables cardholders to make fast, easy and secure contactless mobile payments at NFC-enabled merchants throughout Saudi and abroad with Saudi-issued Visa cards (credit and prepaid). Visa and mada co-badged (debit and prepaid) cards can also be used with mada Pay.
The mada Pay app features built-in security technology enabled by Visa Token Service and mada Tokenization Platform that replaces card data, including the 16-digit card number, with a “token” (a random number), to protect cardholders’ account information. During the transaction, the token is selected (either a mada or Visa token) and submitted into the payment process rather than the actual card information, depending on the type of card and geographical location where the transaction occurs. This means that users of digital applications such as mada Pay are able to pay, safe in the knowledge that they are protected by multiple layers of security.
Ali Bailoun, Visa’s general manager for Saudi Arabia, said: “We’re delighted to be partnering with mada to launch mada Pay, the first digital application of its kind in Saudi Arabia, a secure and innovative cashless solution made possible by our joint secure tokenization technologies. This initiative reflects our commitment to supporting Saudi Arabia’s Vision 2030 by leveraging our global capabilities and solutions to help build a secure, seamless and modern payments infrastructure that will facilitate the shift toward cashless commerce.”
Ziad Al-Yousef, general manager of the General Department of Payments Systems at the Saudi Arabian Monetary Authority (SAMA), said: “Offering consumers a digital application is an important step forward in supporting the government’s efforts to achieve Vision 2030. We are pleased to be partnering with Visa and other international players to deliver such a safe, convenient and interoperable new way to pay.”
Earlier this year, Visa released the results of an independent study conducted by Roubini ThoughtLab and commissioned by Visa, “Cashless Cities: Realizing the Benefits of Digital Payments,” which examined the economic impact of increasing the use of digital payments in major cities around the world.
“Our Cashless Cities study shows that increased usage of digital payments, such as cards and mobile payments, could yield a net benefit of up to SR25.12 billion annually to consumers, businesses, and government in Riyadh. Today’s partnership is a great example of how Visa, the leading digital payments company globally, is well positioned to work with our partners in government — as well as across banks and merchants, in unlocking the financial benefits of moving toward digital payments,” added Bailoun.
The partnership between Visa and mada to introduce mada Pay in Saudi Arabia marks a significant milestone in the country's digital payment landscape. My expertise in the field of digital payments encompasses a deep understanding of the technologies and security measures involved in such collaborations. Allow me to delve into the concepts and technologies embedded within this article to shed light on their significance:
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Visa: As a global leader in digital payments, Visa's involvement underscores its pivotal role in fostering innovative payment solutions worldwide. Visa's expansive network and technology are instrumental in facilitating secure transactions across borders.
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mada: As the national payment scheme in Saudi Arabia, mada's partnership with Visa highlights the collaboration between a global payments giant and a local entity to enhance the country's payment infrastructure.
See AlsoMada Pay - anb - anb website -
mada Pay: This Android-based mobile application revolutionizes payment methods by enabling contactless transactions via NFC technology. It allows Saudi cardholders to conduct secure and swift transactions both domestically and internationally.
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Contactless (NFC) Transactions: Near Field Communication (NFC) technology facilitates contactless transactions, enabling users to make payments by simply tapping their mobile devices or cards at NFC-enabled merchants.
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Tokenization Technology: The integration of Visa Token Service and mada Tokenization Platform enhances security by substituting sensitive card data with randomly generated tokens. This process safeguards cardholders' information during transactions, reducing the risk of fraud.
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Vision 2030: The initiative aligns with Saudi Arabia's Vision 2030, focusing on advancing the nation's digital economy by promoting secure and convenient cashless payment solutions.
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Roubini ThoughtLab Study: Visa's release of the "Cashless Cities" study emphasizes the potential economic benefits of increased digital payment adoption. This independent study explores the positive impacts on consumers, businesses, and the government, projecting significant annual benefits in Riyadh through enhanced digital payment usage.
This partnership showcases how the convergence of secure technologies, collaborative efforts between financial entities, and government support can drive the transition toward a cashless economy, aligning with broader socioeconomic goals outlined in Vision 2030.
