The Trap of Electronic Payment

Falling into the trap of false security can happen easily these days no mater the level of awareness as lacking a sound basis of the basics get us in trap sometimes. Out of an economic eye, I would bring my thoughts here based on the data provided by Saudi Central Bank- SAMA.

Electronic process has become the language of this time, where every things tend to come using technology, few use of papers versions. This life style helps to grow the desire of buying, as it requires swiping softly the mobile inside the shops whenever and wherever you are to get your need. Worth saying the purchases through e- commerce sites for Mada cards average per month 2.7 billion S.R., and 3.5 billion S.R. per month rate for billion Wi-Fi payments, including 823 thousand point of sale devices.

The greatest features of the electronic payment I believe was reducing the fraud cases considering it a real issue from the financial perspective, within the private sector (banking- insurance- marketplaces), to avoid the risk of having fake cash or checks time after time.

This type of payment minimizes the source of trouble inside governmental institutions to have historical records for the transfer made by individuals and groups to investigate with those having high- volume transactions, for example. Good to mention the data collected by Absher system in this regards, average number if SADAD bills 22.5 million monthy bills, average value of SADA bills 40 billion S.R a month, claim records.

Thus, we can say having electronic choice to pay has advantages and this advantages as well, however, the process of doing it needs a high sense of conscious, talking here about the individual usage in particular, knowing that most of us, 80s and above, prefer to use digital payments instead of cash.

The reason why this matter to me because of the endless cycle I and the people around me had in respect of paying the due of our credit cards, cant remember how many time I promised my self to cut-off but I fail, its like you got addicted to toxic relation, worth taking into account in Saudi Arabia the credit cards loans were 2.1 billion during year of 2000 and 18.3 billion at the year of 2020, whereas it reached 17.7 billion at the first quarter of 2021.

With reference to one article of Bloomberg, it says, “In almost every way measurable, millennials in the U.S. at 40 are doing worse financially than the generations that come before them. Fewer millennials own homes than their parents did at their age. They have more debt- especially student debt. They simply aren’t as wealthy” Hope we don’t have such scenario for the coming generations here in Saudi Arabia considering this pandemic period of time.

Bear in mind that KSA superior in quality and value historically and in a list ranking the luxurious countries in spending and liking the sensual pleasures!

I believe on the importance of educating numberings and having a wide knowledge about it is meaningful “bonus”.