Saudi Arabia’s financial technology landscape is poised for expansion as the Saudi Central Bank, also known as SAMA, issues comprehensive guidelines for buy now, pay later (BNPL) companies. Released on December 17, these rules set licensing standards and minimum requirements, defining BNPL as consumer financing that allows the purchase of goods or services without an immediate cost to the consumer. SAMA’s focus is on fostering growth and sustainability in the sector while prioritizing user rights protection.
The guidelines encompass licensing prerequisites, internal policy and procedure regulations, information security standards, and measures to combat financial crimes. SAMA stipulates a minimum capital of SR5 million ($1.3 million) for BNPL companies, subject to adjustments as deemed appropriate by the regulatory body. The move also mandates that at least 50% of a BNPL company’s human resources must comprise Saudi nationals across all departments and organizational levels. As the Kingdom witnesses a surge in pay-later services, SAMA’s recent approval of Jeel Pay brings the total number of authorized BNPL companies to seven, reflecting a commitment to fostering innovation and supporting post-paid services in line with Vision 2030 goals. The Kingdom aims to have 525 such companies, creating 18,000 jobs and contributing SR13.3 billion to the direct gross domestic product. SAMA remains dedicated to enhancing financial sector innovation and promoting inclusivity in alignment with national fintech strategies.