SADAD Payment System in Saudi Arabia

SADAD payment system is actually the payment system established by Saudi Arabian Monetary Authority (SAMA) for payment of national electronic bills. It is an online payment service offered by monetary agencies of Kingdom in order to facilitate consumers to pay their bills through any bank for 24 hours a day. This system links all commercial and state banks for payment of bills by consumers. It streamlines bill payment transaction in all cities of Kingdom. SADAD payment system was introduced first in 2004.

The vision of SADAD payment system: SADAD payment system aims to provide a platform to customers for payment of all kind of bills through any banking network. It is a project of SAMA that acts as an intermediary between banks and billers. It aims at facilitation of people across the Kingdom to provide efficient service for bill transaction. This system aims at time-saving and to save people from wasting energies in hectic process of bill payment. It aims at providing cost effective system for bill payment across the main cities of Kingdom.

The reason for the establishment of SADAD payment system: The basic purpose of this system is to enable any customer to pay their bills without becoming a member of a specific banking network. It enables customers to transact their bills at any branch in Kingdom. Bank does not charge any amount from the customers for using this payment system. Before the establishment of SADAD payment system customer had to visit bank at the interval, they had to make long queues waiting for their turn to pay bills. It also caused so many problems for the bank. About 65- 75 % bills were paid in cash form at different branches of Kingdom. This required banks not only to bear additional costs for payment processing systems, IT regulation and integration charges and reconciliation work to be performed and expenses related to it.

Objectives of SADAD payment System: The main objectives of SAMA’s project of payments (SADAD) are as follows;

  • The SADAD system of payments accept bill summary at a pre-determined schedule and saves from wastage of time
  • It shows evidence of billing transactions through online database access.
  • Bill information can be taken from any branch of these banking networks
  • In case of any discrepancies, proper notification are issued to customers by SADAD management
  • The banks provide confirmation to customer on successful completion of transaction
  • Final reconciliation reports of the transaction can be taken from respective banks

All these factors enabled need for integration of 12 major operating systems at banks to enable the formation of a single platform. By integrating these banking networks SAMA formed SADAD system of payment for bill transactions. This platform enables high volume bill transaction payments. It enables every user to use this facility to pay utility and other bills and traffic fines at any branch of these 12 banking networks in KSA.