RIYADH: Saudi fintech startup KadiPay has obtained a permit from the Kingdom’s central bank to provide buy-now-pay-later solutions.
This decision by the Saudi Central Bank brings the total number of companies authorized to practice BNPL activity in the Kingdom to six.
It also increases the number of licensed and authorized financing companies to 56, 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.
SAMA’s annual fintech report has set significant milestones for 2025, including the presence of 230 such companies and an influx of SR2.6 billion in venture capital investments.
“KadiPay’s team of seven people was able to obtain a permit from the Central Bank to practice postpaid activity and also help set the rules of activity in the sector. We are optimistic about the FinTech Strategy 2030 and the opportunities it holds to enhance the growth of the sector,” a statement released by KadiPay stated.
UAE-based Tabby, a leading player in the BNPL space, also received its license from SAMA earlier this year. The company, which holds a $666 million valuation, announced its intent to move its headquarters to Saudi Arabia.
The bank also provided licensing to BNPL company Tamara in July, allowing it to provide consumer finance through its platform.
This comes after SAMA’s report revealed that total assets held by the financial technology sector grew to SR6.8 billion in 2022 from SR6.5 billion the previous year.
In March, Saudi Venture Capital announced its intent to further boost this sector 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.