Saudi Arabia launches instant payment system, transactions available 24/7
- By Web Desk -
- Feb 23, 2021
The Saudi Central Bank (SAMA) launched the instant payments system ‘SARIE’, after a successful trial phase with several Saudi participating banks.
According to SAMA, the 24/7 electronic payment system allows financial institutions, companies, and individuals to transfer money instantly.
Commenting on the achievement, Governor of the Central Bank Dr. Fahad bin Abdullah Al-Mubarak said, “The launching of sarie system comes as part of a series of SAMA-led initiatives to promote the national payments’ ecosystem and to enhance its infrastructure, aiming to achieve financial inclusion.”
“They offer secure and innovative payment solutions, meet the needs of various segments of the economy, and increase the effectiveness of the liquidity circulation in the financial system, through reducing the operational costs of cash handling, facilitating sending and receiving payments, and driving the digital transformation in the Kingdom by increasing the volume of digital financial transactions”
Saudi Payments’ Managing Director Mr. Fahd Al-Akeel said the system would also improve the transparency of payments between companies and individuals, as well as other banking-related benefits.
What is instant payment system and how it will work?
SARIE services will allow the banking sector’s clients to send and receive low-value local transactions around the clock and for a low fee, not exceeding one Saudi Riyal.
Additionally, the system provides beneficiaries with other services and transfer options, including using the mobile number as an identifier instead of the IBAN for transactions between banks, and the ability to verify the validity of the recipient’s bank account before completing the transaction.
Further, Al-Akeel indicated that any financial transaction of less than SAR 20,000 will be instantly credited to the recipient account by the sarie system.
Financial exchanges, such as money transfers between bank accounts, will be easier, quicker, and no longer constrained by the official operating hours of the Saudi Arabian Riyal Interbank Express (SARIE).
Saudi Payments’ Managing Director declared that the system serves as an essential milestone in the process of developing payment systems in the Kingdom.