SAMA Issues Rules for Regulating BNPL

The Saudi Central Bank (SAMA) announces the issuance of the “Rules for Regulating Buy Now Pay Later (BNPL) Companies," as part of its role in supervising and controlling the BNPL companies.

Under these rules, the (BNPL) activity is defined as “a type of financing that allows a consumer to purchase goods or services without a term cost payable by the consumer."

The rules aim to regulate the licensing of the (BNPL) companies and set minimum standards and procedures required to offer (BNPL) services. Additionally, the development of these rules will contribute to the growth and sustainability of the sector while safeguarding consumers' rights.

The rules include various provisions related to licensing requirements, regulatory measures such as internal policies and procedures, information security standards, and measures to combat financial crimes.

Additionally, regulatory obligations designed to safeguard consumers, and establish boundaries for activities and credit, as well as provisions about supervision and compliance were included in the new rules.