Saudi Payments has signed a memorandum of understanding (MoU) with twelve parties to implement a QR-based national payment system.

The MoU, which included nine banks and three fintech firms in Saudi Arabia, aims to provide consumers with new payment opportunities and further pushes its long term aim in creating a cashless society.

The governor of the Saudi Arabian Monetary Authority (SAMA), Dr. Ahmed Alkholifey, announced that SAMA, represented by Saudi Payments, is working on “unifying the technical and commercial standards” for payments based on QR codes technology.

SAMA is responsible for the development and operation of the national payments infrastructure in the Kingdom of Saudi Arabia.

Through the use of one unified platform it is expected that all parties involved will be able to interact effectively and Saudi Payments aim to provide alternative payment solutions for retailers, payment service providers and individual customers.

Furthermore, the QR code payment system will contribute towards the development of a digital infrastructure for the country’s financial system – based on the concept of an open loop payment environment.

An open loop payment environment means retailers, payment service providers and digital wallets users will be able to make payment transactions regardless of the relations among the involved parties.

Saudi Payments’ statement concluded: “This new service will ensure the further development of the payments ecosystem to achieve the objectives of the Financial Sector Development Program (FSDP) – one of which is to create a cashless society boosted with digital payment options.”