Saudi Arabia's central bank, the Saudi Central Bank (SAMA), has granted a license to Daftar Technologies to offer buy now, pay later (BNPL) services, increasing the total number of licensed finance companies in the Kingdom to 76. The decision underscores SAMA's commitment to strengthening the finance sector, enhancing transaction efficiency, and promoting innovative financial solutions to advance financial inclusion.
Rapid Expansion of Consumer Finance Sector
The consumer finance sector in Saudi Arabia has experienced significant growth as SAMA accelerates the licensing of new financial institutions. This aligns with the goals of Vision 2030 to boost competition, innovation, and financial inclusion. The number of licensed finance companies has risen from 68 in October to 71 in April, 75 in June, and now 76 following the latest BNPL approval. This trend reflects increasing demand for digital financial services and flexible payment options as the Kingdom's fintech ecosystem matures.
According to SAMA, electronic payments accounted for 85 percent of retail transactions in 2025, indicating widespread consumer adoption of cashless payment methods. The regulator emphasized the importance of dealing exclusively with authorized financial institutions to ensure security and reliability.
BNPL Revolutionizing Shopping Habits
BNPL services have transformed consumer shopping behavior by allowing payments to be spread over an extended period. This provides consumers with greater control over their finances and alters their relationship with businesses. The latest license adds another player to Saudi Arabia's increasingly competitive BNPL market, where established providers like Tabby and Tamara have expanded their offerings beyond short-term installment payments through additional regulatory approvals.
Just days before licensing Daftar Technologies, SAMA granted Tabby both consumer finance and small and medium-sized enterprise finance licenses. Abdulaziz Saja, general manager of Tabby Saudi Arabia, stated that these licenses are expected to move Tabby beyond short-term BNPL and support its ambition to become a broader financial services provider.
Market Growth Projections
In an interview with Arab News in 2024, Arjun Singh, partner and global head of fintech at Arthur D. Little Middle East, highlighted the natural evolution of Saudi Arabia's consumer finance landscape. He noted that the Saudi BNPL market is projected to grow from $1.4 billion in 2024 to $2.8 billion by 2029, reflecting a compound annual growth rate of over 10 percent. This growth is driven by an expanding array of financial products tailored to the diverse needs of the Kingdom's growing market.
SAMA's latest approval underscores the regulator's broader push to expand access to digital financial services under Vision 2030, positioning Saudi Arabia as a leading fintech hub in the region.
