New Saudi Payment Gateway (SPG) API System & Implications Of This Change

Saudi Payment Gateway (SPG) API System & Implications of this change

Saudi Payments has introduced the mada Saudi Payment Gateway (SPG) API System for the authorization of online transactions in Saudi Arabia. This transition marks a significant shift in the online transaction authorization process in the country.

Here is an overview of the key points and implications of this change:

Key Points

1. Introduction of SPG API system:

  • Saudi Payments has introduced the new mada SPG API System, designed to modernize and streamline the authorization of online transactions.
  • This system is set to replace the legacy mada ISO8583 system.

2. Mandatory upgrade for payment gateways (PGWs) and payment service providers (PSPs):

  • All PGWs and PSPs in Saudi Arabia must upgrade their systems to connect with the new SPG API System.
  • Compliance with the new system is required to continue processing online transactions.

3. Unified authorization system:

The SPG API System will serve as a centralized mechanism for authorizing transactions across all card types, including:

  • mada-only cards: Local Saudi payment cards.
  • mada co-badged cards: Cards that carry both mada and an international card scheme, such as Visa or Mastercard.
  • International scheme cards: Cards solely from international schemes like Visa, Mastercard, etc.

4. Simplified connectivity:

  • PGWs and PSPs will no longer need to connect directly with Visa-VAP (Visa Access Point) or Mastercard-MIP (Mastercard Interface Processor) servers.
  • Instead, they will connect to the SPG API System to authorize transactions for all card types, simplifying the integration process and potentially enhancing security and efficiency.


1. System upgrades and integration:

  • Payment gateways and PSPs need to invest in updating their existing systems or developing new systems to interface with the SPG API.
  • This may involve significant development work, testing, and validation to ensure compliance and functionality.

2. Regulatory compliance:

  • Ensuring that systems are compliant with the new SPG API requirements will be critical for continued operation within the Saudi payment ecosystem.
  • Non-compliance could lead to disruptions in service and potential penalties.

3. Operational efficiency:

  • The unified authorization system could lead to more streamlined operations, reducing the complexity of managing multiple connections for different card schemes.
  • It may also enhance transaction processing times and reliability.

4. Security enhancements:

  • The new system is likely designed with improved security features to protect against fraud and cyber threats.
  • PGWs and PSPs will need to adhere to these enhanced security protocols to protect sensitive transaction data.

5. Market impact:

  • The transition may impact the competitive landscape, as PGWs and PSPs who swiftly adapt to the new system could gain an advantage.
  • There may be a period of adjustment where some providers experience challenges, potentially affecting their service delivery.

Action Steps for Acquiring Banks, PGWs and PSPs

1. Assessment and planning:

  • Conduct a thorough assessment of current systems and identify necessary changes to integrate with the SPG API.
  • Develop a detailed implementation plan, including timelines, resource allocation, and budget considerations.

2. Development and testing:

  • Engage with IT and development teams to build and test the new integration.
  • Ensure robust testing environments to simulate various transaction scenarios and identify any issues before going live.

3. Training and support:

  • Provide training for technical staff on the new system and its requirements.
  • Establish a support mechanism to address any challenges that arise during and after the transition.

4. Continuous monitoring and compliance:

  • Implement continuous monitoring to ensure ongoing compliance with the SPG API requirements.
  • Stay updated with any further updates or changes to the system from Saudi Payments.

Logibiz's Role

Logibiz launches cost-effective Saudi Payment Gateway API Toolkit for Mada SPG transition

Logibiz offers a comprehensive Saudi Payment Gateway API toolkit, a strategic solution aimed at helping PGs and PSPs transition smoothly to the new mada SPG API Systems. This toolkit is designed to:

  • Offer a cost-effective and ready-to-use solution to adopt this new change.
  • Provide a solution with source code to eliminate future vendor dependencies.
  • Be easily deployed as a scalable and independent microservice.
  • Provide end-to-end certification support and ensure compliance with local regulations quickly.


By addressing the key points, implications, and action points mentioned above, banks, PGWs, and PSPs in Saudi Arabia can ensure a smooth transition to the new mada SPG API System. This will enable them to maintain their ability to process transactions efficiently and securely. By leveraging the Logibiz Saudi Payment Gateway API toolkit, enterprises in Saudi Arabia can efficiently navigate the transition to the new mada SPG API System, ensuring compliance, reducing costs and vendor dependencies, and enhancing operational efficiency.

The new mada SPG API System is designed to modernize and streamline the authorization of online transactions in Saudi Arabia, replacing the legacy mada ISO8583 system with a more efficient, centralized mechanism.

All Payment Gateways (PGWs) and Payment Service Providers (PSPs) in Saudi Arabia must upgrade their systems to connect with the new SPG API System to continue processing online transactions.

The SPG API System provides simplified connectivity, unified authorization for all card types, enhanced security features, and improved operational efficiency by reducing the complexity of managing multiple connections.

PGWs and PSPs should assess and plan system changes, engage in development and testing, provide training and support for staff, and implement continuous monitoring and compliance measures.

The Logibiz toolkit offers a cost-effective, ready-to-use solution with source code to eliminate vendor dependencies, scalable deployment as an independent microservice, and end-to-end certification support to ensure quick compliance with local regulations.

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