You can see the rules and regulations in other jurisdictions.
In addition to providing temporary licenses for fintech activities and PSP, financial support, and debt-based crowdfunding, the SAMA Open Banking Policy was implemented with the intention of developing new financial solutions that can benefit both financial institutions and their end customers. This policy enables customers to permit secure access of their data to third parties so fintech companies can gain insight into customer data, enabling them to create and offer further financial services.1
Payment services in Saudi Arabia are subject to the Banking Control Law, meaning that PayPal, HyperPay and PayTab must be licensed by SAMA for them to operate. If an entity wishes to provide payment services, it must gain the appropriate licenses from SAMA, collaborate with a licensed entity or engage the services of a locally authorized agent who can acquire the necessary permit.1
With regard to making client data accessible to third parties, the introduction of the Open Banking Policy should enable customers to securely share their data with third parties, allowing fintech companies to access customer data, enabling them to offer new financial services. The policy is still in different phases until it is fully implemented by 2022, so we should expect developments in this area by then.1
Besides the open banking policy, there is currently no established law that guarantees the security of customers' data. Nevertheless, it has been customary to observe privacy, particularly with the empowerment of the E-Commerce Law during July 2019 and its implementation procedures in 2021. Being the first law to require entities for confidentiality when transacting electronically, it can be safely assumed that Saudi Arabia will soon make it legally obligatory and take corrective action against any infringement.1
Payment services in Saudi Arabia
