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Fintech Market Overview

This article does not constitute legal advice.

Payment services in Saudi Arabia

Fintech Software

In March 2020, SAMA decided to introduce new regulations on obtaining Payment Service Provider Licences as a result of the increase in applications to the sandbox programme by applicants carrying out payment service providers. This type of licence covers entities involved in payment activities such as execution of payment transactions, issuing payment instruments, developing e-wallets, withdrawal of cash, or any relevant payment initiation services.1

PSP regulations offer four types of licences:

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

The first two are for the purpose of carrying out all payment activities other than issuing e-wallets with the difference between micro and macro being that macro allows for cross-border remittance and does not involve limitation on transaction values, while the micro does not allow cross-border remittance and enforces limits on transactions value. The two latter licences allow for all payment activities including issuing e-wallets with the only difference being in the limits imposed on transaction value (micro imposes limits while macro does not).1

Cryptocurrencies in Saudi Arabia

Fintech in Saudi Arabia

Fintech in other countries

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