Tap to Pay technology turns iPhones into payment devices for merchants in Saudi Arabia, enabling small businesses and freelancers to accept payments directly via NFC as part of the shift toward a cashless society[cite: 13].

Saudi Arabia’s digital payments sector is taking a new strategic step, with the Saudi Central Bank announcing that Tap to Pay will soon be available on iPhone. This marks a significant shift in making it easier for merchants and business owners to expand their ability to complete financial transactions.

The technological shift and how it works:

  • What has changed? Merchants can move from using a standalone point-of-sale (POS) device to using their own phone to accept payments directly.
  • The enabling technology: The service uses near-field communication (NFC) to transfer payment data smoothly and securely between devices in close proximity.
  • How it works: The process begins on the merchant’s phone. The customer then holds their card or phone near it to complete the payment instantly.

Why does the service matter, and who will benefit?

  • Easier payment acceptance: The service caters to a wide range of users, including small shops, delivery couriers, street vendors, and freelancers.
  • Operational benefits: It offers faster and easier payments, greater security and reliability, higher acceptance rates, and support for the growth of small businesses.
  • The shift toward a cashless society: This development is part of Saudi Arabia’s ongoing efforts to reduce reliance on cash, which have included the launch of SoftPoS in 2021.

The strategic takeaway:

This technology shows that innovation in public finance and financial technology goes beyond developing digital applications—it also reshapes and transforms the way people pay.