The Saudi Central Bank has given UAE-based BNPL fintech platform Tabby a permit to run postpaid payment activity in the country.
This makes the company the fifth authorised company offering BNPL solutions in the country, which affirms the Saudi plans to become a regional fintech hub, according to SAMA.
In June, Tabby secured $50 million in debt financing from Abu Dhabi-based private investment firm Chimera.
In January, the platform bagged $58 million in Series C funding at a $660 million valuation from investors including PayPal.
The company has completed multiple funding rounds despite a wider slowdown in investment. Global fintech funding dropped 46 per cent year on year last year, according to CB Insights. The firm secured a $54 million Series B extension round in March 2022 and $150 million in debt financing last August.
This permit reflects SAMA’s commitment to boosting the sector by improving operational efficiency and fostering innovative financial solutions which boosts inclusivity in Saudi Arabia.
At the start of July, it granted permits to Tamara to provide consumer finance through the BNPL platforms.
In May, the bank also gave permits to Spotii and Madfu to provide consumer finance through the platforms.
The strongest growth of the BNPL market in the region is projected in Saudi Arabia, where the sector is forecast to represent 3.4 per cent of e-commerce spend by 2025, FIS reveals.
According to Checkout.com, more than 50 per cent of consumers in the Mena region and Pakistan will soon use BNPL
SAMA IS working on using technology in financial services to support Saudi Arabia’s broader goals as it pushes ahead with the Vision 2030 economic diversification strategy.
Under the Ministry of Finance’s national fintech strategy, the number of firms in the sector is expected to increase from 82 in 2022 to 230 by 2025.
