Question

This is a fintech course.

I chose contactless cards/payments in Saudi Arabia, and the questions are:

1. Define the context for which you will be completing an environmental analysis using PESTLE. (Max. 100 words)

2. Complete the right-hand side of the table using the PESTLE analysis tool. (Max. 600 words)

Political ;

Economic;

Social;

Technological ;

Legal ;

Environmental ;

Answer 1

Contactless payments are the future in the developing as well as in the developed nations , with the rise in the adoption of tecnonology among the new generation as well the tech savvy customers , the digital payment ecosystem is the new norms,,

As such while looking into the contactless payment segment in the fintech industry the major player are the PayPass and Pay wave based issuers of cards .

The markets in UAE have shown tremendous rise in the volume of the transactions , while majority of the payments are also comping from the tourist and foreigners in the country . As such , contactless payment solutions not only fuel this demand but also help in the seamless conversion of currency while the transactions are made .

The PESTLE analysis done on the emerging fintech platform

POLITICAL	· The political enrolment of Saudi, we find that there are strict rules governing sovereign wealth management · The laws related to taxation are much stricter and violations are considered as a crime in the Saudi · As such a accountable and trustable mode of payment is required . · Contactless payments are now being accepted by the sovereign wealth management of the Saudi. · The peak driving factors are the affluent class as well as the responsible citizens of the country who abide by the rules of the nation
ECONOMIC	· Saudi mainly have a commodity based economy where in even in the pandemic hit world the gdp figures are quite stable for Saudi. · In order to boost the financial stability in the country , more public as well as foreign expenditures are encouraged by the Saudi govt. · Contactless payment rewards and merchant engagement schemes provide the benefits to both the parties here
SOCIAL	· The socio cultural changes in the lifestyle as well as in the spendings pattern of the new generation have gradually shifted the chash based economy to cash less economy . · With the rise in the use of NFC based smart-phones the use of contactless technology have risen with the ease of use · The trasactions set a new norms of payment which is rapidly absorbed by the customers in Saudi
TENCHNOLOGICAL	· The shift in the tecnologoical paradigm has also made the contactless serve the way for the future. · Magstripe based payments were less secure, and there are many instances where the user had to suffer due to disclosure of sensitive information leading to the financial loss. · Contactless payments thus are a much safer technological upgade to the traditional DC and CC cards
LEGAL	· The legal framework binding the financial system in the Saudi is the Islamic banking system . · While there are stricter norms related to the disclosure of high value transactions and taxation purposes , in order to be more transparent with the procedure , contactless payments are adopted. · This also prtectes the user from any unauthorized charge on their card wit immediate redressal mechanism offered by the issuer of the card
ENVIRONENTAL	· Conatctless payment ensure a sustainable way of transition for the future. · Minimizing the use of natural resources like ink for printing and paper , these payments completely operate on digital ecosystem . · Also in the current pandemic situation, where the contactless procedures are encouraged in order to maintain the health and the hygiene standards , customers are preferring contactless payments during their international visits

Thanks