News
Nearly All Saudi Gen Z & Millennials Will Be AR Users By 2025
A new white paper by Snap Inc and others reveals how immersive tech will transform the retail industry in Saudi Arabia.
Snap Inc, the owner of Snapchat, has partnered with PwC Middle East and Retail Leaders Circle (RLC) to commission a white paper entitled, “The shift towards immersive shopping: New opportunities for retailers in KSA”.
The study (which you can find here) focuses on the evolution of the typical Saudi consumer and how shoppers now desire more immersive retail experiences. The paper points out that businesses must embrace digital and hyper-responsive AR experiences as the backbone of their marketing strategies rather than simply adding to traditional methods.
Right now, a significant gap exists between the perception of AI by consumers and brands, with 94% of brands viewing AR as being primarily for fun, whereas only 53% of consumers view it the same way.
Not only that, by 2025, it is estimated that around 75% of people worldwide will be frequent AR users. And almost all of the Gen Z and Millennial population of Saudi Arabia will use the technology frequently.
As Saudi shoppers demand ever-higher levels of convenience, Artificial Intelligence (AI) will play a leading role in the future of retail, enabling hyper-personalization, real-time behavioral dat, and analytics to offer the right promotions and tailored messages to customers in real time.
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“Over the years, we have seen AR evolve from being just a mode of entertainment and self-expression to delivering true value for consumers and businesses. AR is already transforming the industry and is slated to metamorphose every shopper’s journey in the near future. Today, as we ponder the future of retail, it’s time to be agile and adapt wholeheartedly to the latest in commerce,” says Abdulla Alhammadi, Regional Business Lead for KSA Market, Snap Inc.
In a world where online shopping is focused more on product rather than the consumer, Snap Inc’s report shows us a retail future driven by customer self-expression. According to Snap Inc, AR can “showcase products, push creative boundaries, drive real sales, and help reduce returns.” The company also highlights that “250 million people already engage with AR on Snapchat each day, and Snapchatters now play with AR more than 6 billion times a day on average”.
News
Saudi Digital Payments Reach 80% As Cash Use Shrinks
Visa data shows cards and mobile wallets dominate spending, with smartphones now driving a growing share of daily transactions.
Digital payments now account for 80% of all transactions in Saudi Arabia, according to Visa’s latest Where Cash Hides report, another marker of how quickly the Kingdom is moving away from cash.
The share is up four percentage points from a year ago. Around 67% of consumers are now largely non-cash users, paying mainly with cards or mobile wallets. Smartphones are taking a bigger role, with mobile payments making up 16% of transactions.
Cash is retreating in routine spending. Eating out dropped 9%. Bill payments fell 8%, as shoppers opt for faster checkouts and app-based payments.
“The data shows a steady move toward digital payments in Saudi Arabia. Such progress is possible only because banks, fintechs, merchants, and technology partners are moving together in the same direction, in line with the Kingdom’s Vision 2030,” said Ali Bailoun, Visa’s Senior Vice President and Group Country Manager for Saudi Arabia, Bahrain, and Oman.
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Despite the recent findings, it’s important to note that cash hasn’t yet disappeared. It still shows up for tips (39%), peer-to-peer transfers (28%) and rent (14%).
Visa points to security features such as tokenization, along with rewards and cashback, as factors nudging more spending onto cards and phones — a shift that tracks with Saudi Arabia’s wider Vision 2030 push to digitize commerce.
Saudi Digital Payments Reach 80% As Cash Use Shrinks
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