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Because of the increase in applications to the sandbox program by applicants who provide payment service services, SAMA decided in March 2020 to introduce new regulations on obtaining Payment Service Provider Licences. Entities involved in payment activities include executing payment transactions, issuing payment instruments, developing e-wallets, withdrawing cash, or any relevant payment initiation service.¹

There are four types of licences offered by PSP regulations:

1. micro payment institution;
2. macro payment institution;
3. microelectronic money institution (e-wallet);
4. macro electronic institution (e-wallet). ¹

The first two licences enable payment activities aside from issuing e-wallets, with the distinction that macro allows for cross-border remittance and does away with transaction ceilings, but micro does the opposite. The last two authorisations are for all payment activities, including dispensing of e-wallets; their sole disparity is the limitation on transaction value - micro imposes one while macro doesn't.¹

Cryptocurrencies in Saudi Arabia

Fintech in Saudi Arabia

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Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/saudi-arabia