FinTech: Saudi Central Bank (SAMA) Boosts FinTech, Issues BNPL Licenses

May 31, 2023 | FinTech, News

Riyadh start-up Madfu and Zip-owned Spotii won the SAMA licenses.

The Central Bank of Saudi Arabia, known as SAMA, has granted Riyadh start-up Madfu and Spotii, which is owned by Zip, licenses to offer Buy Now Pay Later (BNPL) services. These licenses are in accordance with the laws governing finance companies and the Saudi Central Bank, enabling them to provide financing options to customers who want to make purchases without incurring interest costs over a fixed period.

SAMA’s objective in granting these licenses is to attract new investors and companies that can contribute value to the sector, thereby improving its efficiency. However, it is essential for both companies to comply fully with the regulatory and supervisory guidelines set by SAMA. (Electronic Payments International)

SAMA emphasizes its ongoing commitment to supporting the finance sector and fintech in order to enhance operational efficiency and promote financial inclusion for different segments of society in Saudi Arabia.

“Granting permits to BNPL companies is a step towards achieving the objectives of the fintech strategy in its pursuit to make Saudi Arabia among the leading countries in fintech,” SAMA said.

Zip, an Australian company, acquired Spotii, which is headquartered in the UAE, in 2021. Madfu, on the other hand, is based in Riyadh and secured $1.3 million in funding through a pre-seed funding round in November 2022.

Related Story: Middle-East Focused BNPL Fintech Tabby Lands $58M Funding

Photo by Haidan on Unsplash

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