SAMA seeks public input on draft bill regulating BNPL companies

Logo of The Saudi Central Bank

The Saudi Central Bank (SAMA) invited stakeholders and the public to send their feedback on the draft rules for regulating buy-now-pay-later (BNPL) companies via Istitlaa platform from May 2-31.

This comes as part of SAMA's role in supervising and regulating the BNPL companies. This is besides its continuous effort to develop the financial sector, in general, and empower the financial technology (FinTech) sector, in particular.

SAMA also noted that these rules set the minimum standards and procedures required to practice the BNPL activity, most notably provisions related to obtaining a license for business practice.

The bill will also ensure the sector’s sustainability, without compromising the financial consumer protection principles and customers’ rights.

The new rules entail the Saudization of at least 50% of any BNPL firm upon its inception, distributed among senior and executive positions.

This rate shall increase by at least 5% annually until 75% of jobs at the company are localized. SAMA may set a minimum annual rise in the firm’s localization rate required thereafter.

In all cases, any BNPL business must obtain the central bank’s non-objection on the appointment of any non-Saudi employee in senior posts, providing proof of the unavailability of Saudis to fill the position.