RIYADH: Saudi Arabia’s central bank licensed Jil Aldaf Alajil Co., which operates as Jeel Pay, to provide buy-now-pay-later services, bringing the number of finance companies licensed by the regulator to 78.
Jeel Pay focuses on education-related payments. The company’s platform allows customers to spread tuition payments over as many as 12 months and provides advance payments to partner educational institutions.
The licensing comes as Saudi Arabia pushes to expand digital financial services under its Vision 2030 economic agenda. The Kingdom is widening the regulatory framework for fintech activities, including BNPL, open banking, crowdfunding and finance aggregation, as it seeks to increase financial inclusion and competition while encouraging technology-driven innovation.
In a statement, the Saudi Central Bank, known as SAMA, said: “The decision reflects SAMA’s endeavor to support the finance sector, enhance the efficiency of financial transactions, and promote innovative financial solutions for financial inclusion in Saudi Arabia.”
SAMA urged consumers and businesses to deal only with licensed or authorized financial institutions and to verify providers through its website.
From permission to license
The license marks a change in Jeel Pay’s regulatory status. In December 2023, SAMA permitted the company to offer BNPL solutions, making it the seventh authorized provider in the segment and bringing the combined number of licensed and permitted finance companies to 58.
The two figures are not directly comparable because the 2023 total included both licensed and permitted companies, while the latest figure refers specifically to licensed finance companies.
SAMA introduced rules governing BNPL companies in late 2023, setting minimum regulatory standards for the sector, including requirements related to responsible lending, consumer protection and credit-risk management.
Under the rules, BNPL services enable customers to purchase goods or services without paying the full amount immediately, with the balance settled over an agreed period. Providers are subject to regulatory requirements covering areas including governance, risk management and consumer protection.
More finance licenses
SAMA has continued to authorize companies across several financing activities. In July, it licensed Tqniyat Daftar Co. to provide BNPL services, Credit Line Co. to conduct consumer microfinance and Mansat Hima for Financing to operate in debt-based crowdfunding.
The central bank also approved companies in related regulatory categories. Malaa Co. was licensed on July 22 to provide payment-account information services under Saudi Arabia’s open banking framework.
On Aug. 6, SAMA licensed Manasat Wasl Co. for Communications and Information Technology to conduct finance aggregation activities, according to the regulator’s recent announcements.
