SAMA issues rules regulating BNPL companies

The Saudi Central Bank (SAMA) headquarters

The Saudi Central Bank (SAMA) issued rules regulating buy-now, pay-later (BNPL) companies as part of its role in supervising and controlling these firms. 

These rules define BNPL activity as a type of financing that allows a consumer to purchase goods or services without a term cost payable by the consumer. 

SAMA stressed that the decision reflects its “continuous efforts to develop the financial sector as a whole and empower the fintech sector in particular." 

The rules aim to regulate the licensing of BNPL companies and set minimum standards and procedures required to offer BNPL services, SAMA explained, adding that the development of these rules will contribute to the growth and sustainability of the sector while safeguarding consumers' rights.

In addition, the rules include various provisions related to licensing requirements, internal regulatory measures such as internal policies and procedures, information security standards, and measures to combat financial crimes.

They also include regulatory obligations aimed at protecting the customer, setting activity limits, credit limits, and supervision and compliance provisions.

SAMA had previously published draft rules for regulating BNPL companies for public consultation in order to enhance the principle of transparency and participation, indicating that the comments and views were considered in the final version.