RIYADH: Residents in Qatar will soon have access to buy now, pay later services as the country’s central bank issued a notification asking interested companies to apply for licenses to offer this facility.
In a statement issued on Sunday, the Qatar Central Bank stated that firms willing to operate in this sector must apply for a license, adding that the application process will open in September.
This move aims to license and regulate the BNPL services in the country as it embarks on a journey to support diversification and innovation within the financial sector under Qatar National Vision 2030.
The licensing also aligns with the QCB’s continuous efforts to regulate and develop the country’s financial sector.
The BNPL system is an alternative payment method that allows customers to purchase products and services and split the total cost into affordable time-specific repayment options.
“This payment method not only allows customers to indulge in their desired purchases without straining their budget, while providing multiple benefits like easy budgeting and planning future payments,” the bank said in a statement.
“Additionally, most BNPL services do not charge late or other fees if the installments are paid on time, making it accessible to a wider range of customer segments,” it added.
In fact, BNPL has become the preferred mode of payment in the region, said top financial technology players speaking at a panel discussion on the system’s evolution at the DIFC Fintech in June 2022.
During the event, the industry leaders pointed out how this finance option has revolutionized the fintech industry.
At the time, the bank disclosed that this journey constitutes diversification and innovation of the financial services industry as a central pillar of the Qatari economy, positioning the country as an attractive hub for foreign direct investment, talent and building a knowledge-based economy.
In addition, this strategy has been designed considering several critical principles, including leveraging investments Qatar has made and the country’s geographical and global reach.
