Saudi Arabia is addressing concerns about the unregulated growth of buy now, pay later companies by introducing new rules through the Saudi Central Bank (SAMA). These rules define BNPL as a financing method allowing consumers to buy goods or services without immediate payment.
SAMA’s goal is to supervise and control BNPL companies, setting standards for their licensing and services. The regulations cover various aspects, including internal policies, information security, and measures against financial crimes. They also establish obligations to protect consumers and define boundaries for activities and credit.
This move comes after the success of BNPL firms in the region, such as Riyadh-based Tabby, which recently raised $200 million in funding. Tabby’s success extends to the UAE, where over 4,000 stores accept Tabby Cards for in-store purchases. In introducing these rules, SAMA aims to ensure responsible and sustainable BNPL services, supporting economic growth in line with Saudi Vision 2030.
