• Source: SADAD

      • 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


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


      Connected billers




      See also


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


      References




      External links


      Official website (in English)

    • Source: Sadad

      • Sadad may refer to:

      Sadad, Bahrain
      Sadad, Syria
      The SADAD payment system in Saudi Arabia

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