Misplaced Pages

This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages) The topic of this article may not meet Misplaced Pages's general notability guideline. Please help to demonstrate the notability of the topic by citing reliable secondary sources that are independent of the topic and provide significant coverage of it beyond a mere trivial mention. If notability cannot be shown, the article is likely to be merged, redirected, or deleted. Find sources: "SADAD" – news · newspapers · books · scholar · JSTOR (June 2014) (Learn how and when to remove this message) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "SADAD" – news · newspapers · books · scholar · JSTOR (January 2016) (Learn how and when to remove this message) (Learn how and when to remove this message)

The SADAD payment system was established by the Saudi Central Bank (SAMA) to be the national electronic bill presentment and payment (EBPP) service provider for the Kingdom of Saudi Arabia (KSA). The core mandate for SADAD is to facilitate and streamline bill payment transactions of end consumers through all channels of the KSA (Kingdom of Saudi Arabia) Banks. SADAD was launched on June 7, 2007.

SADAD links the commercial sector and local banks, offering the ability to collect customer payments electronically through all the banking channels in the KSA (Kingdom of Saudi Arabia) 24 hours a day.

History and background

SAMA mandated that all banks accept bill payments from anyone at their branches. The payer does not have to be a customer of the bank. Pre-SADAD economics of bill payment placed an unduly significant burden on banks; it needed to be more efficient and faster. Banks recovered a small portion of the cost by keeping the collected money for 7–30 days after the bill was paid.

Approximately 60-70% of bills were paid in cash at bank branches. The high number of invoices generated in the Kingdom increases bank costs in the front office, payment processing, IT integration and reconciliation. In addition, consumers queue for a long time at banks’ front office desks before paying their bills. Bill presentment and collection are primarily manual and paper-based, creating significant inefficiencies and overheads for billers and banks.

Large billers formed bilateral agreements with banks to enhance bill payment collection. This enabled consumers to use their bank channels to view and pay bills (without any bill consolidation). It required every biller to connect to the twelve banks operating in KSA and from banks to connect separately to every biller under contract.

SAMA chose to integrate these connections through SADAD, a single platform that links different billers and banks to enable consumers to use the electronic channels of any bank. SADAD is now facilitating the payment of high-volume periodic bills (such as utility and phone bills) and customer-initiated payments, such as traffic fines.

How SADAD works

1. Billers send summary bills information to SADAD at a pre-determined schedule
2. SADAD validates data received and uploads it into its database
3. SADAD notifies billers of any discrepancies
4. Customer requests bill information through bank channels
5. The bank forwards the request received to SADAD
6. SADAD retrieves bill information from its database and forwards it to the bank channel
7. Customer selects the bills to be paid and the respective amounts
8. The bank debits the customer account and confirms the transaction
9. SADAD updates its database based on the bank’s confirmation
10. SADAD notifies relevant billers accordingly
11. At the end of the day, billers receive reconciliation reports from SADAD showing a breakdown of all transactions processed by SADAD
12. At the end of the day, SADAD initiates settlement instructions through SARIE
13. SADAD updates bills status to 'settled'

Connected billers

See also

• Electronic billing
• E-commerce payment systems
• Saudi Payments Network (SPAN)

References

1. https://www.arabnews.com/node/300100
2. Biller list with codes listed on SADAD website

External links

• Official website (in English)

v t e Saudi Arabia articles
History	Pre-Islamic Arabia Early Islamic State Rashidun Caliphate Umayyad Caliphate Abbasid Caliphate Emirate of Diriyah Emirate of Nejd Kingdom of Hejaz Unification Modern history
Geography	Borders Cities and towns Climate Earthquakes Governorates Mountains Provinces Wadis Wildlife
Politics	Allegiance Council Cabinet Consultative Assembly Custodian of the Two Holy Mosques Foreign relations King Crown Prince Mabahith (secret police) National Security Council Nuclear program Prime Minister Law Basic Law Capital punishment Elections Freedom of religion Human rights LGBT Rape Women Judiciary Mutaween (religious police) Passport Visa policy Military Army Navy Air Force Air Defense Strategic Missile Force National Guard Chairman of the General Staff General Staff Presidency General Intelligence Presidency Military ranks
Economy	Agriculture Companies Capital Market Authority Council of Economic and Development Affairs Energy Oil reserves History of the oil industry Foreign workers Irrigation OPEC Riyal (currency) Saudi Central Bank Supreme Economic Council Tadawul (stock exchange) Telecommunications Tourism Transport rail
Society	Abortion Censorship Crime Demographics youth Discrimination Education libraries universities Health care Human trafficking Obesity Polygamy Prostitution Terrorism response to ISIL Water supply and sanitation Culture Art Visual arts Cinema Cuisine Language Media television Music Public holidays Religion Islam Sport football Theatre Heritage Symbols Anthem Dance Emblem Flag Motto
Outline Index Category Portal

• Finance in Saudi Arabia
• Payment systems