RIYADH: Saudi fintech startup Jeel Pay has obtained a permit from the Saudi Central Bank to provide buy-now-pay-later solutions.
Jeel Pay is a fintech firm that created a solution to streamline the payment and collection procedures within educational institutions.
This decision by SAMA brings the total number of companies authorized to practice BNPL activity in the Kingdom to seven, according to a statement.
It also increases the number of licensed and authorized financing companies to 58, reflecting SAMA’s ongoing endeavor to support post-paid companies.
In alignment with Vision 2030 goals outlined in the National Fintech Strategy, the Kingdom aims to have 525 such companies, which will create 18,000 jobs and generate SR13.3 billion ($3.56 billion) in direct gross domestic product contributions.
To achieve these objectives, SAMA is focused on fostering innovation within the financial sector and enhancing inclusion and accessibility across the Kingdom.
In October, Saudi fintech startup KadiPay obtained a permit from SAMA to provide BNPL solutions.
In late July, the bank granted the same permit to another BNPL platform known as Tabby.
In early July, amid efforts to affirm its commitment to supporting the fintech sector, the Saudi Central Bank granted BNPL platform Tamara a permit to pursue post-paid payment activity.
A permit was also given to MIS Forward in March to implement a BNPL solution, allowing customers to purchase from merchants without paying term-financing fees.
Also in March, Saudi Venture Capital announced its intent to boost this sector further by dedicating $80 million to its “Investment in Fintech VC Fund” in hopes of stimulating financing for startups and small and medium enterprises.
This strategic decision to invest in the flourishing fintech scene is expected to further develop the ecosystem, which raised $239 million in funding in 2022, according to venture data firm MAGNiTT.
Speaking to Arab News in July 2022, SAMA’s Deputy Governor for Development and Technology Ziad Al-Yousef said that the bank is planning to make Saudi Arabia a regional financial technology hub as part of its strategy to implement the Financial Sector Development Program envisaged in the Kingdom’s Vision 2030 blueprint.
He added at the time that the central bank is developing regulations to address new business models to assist and guide entrepreneurs in the payments, investments and financing sector.
