The Saudi Central Bank has granted Tabby Finance a license to operate buy-now-pay-later services in Saudi Arabia, marking a new milestone for the Kingdom’s fast-evolving fintech ecosystem. With this approval, the total number of licensed finance companies overseen by the regulator has risen to 68, underscoring the depth and diversity of the sector. The move reinforces Saudi Arabia’s broader push to expand access to innovative financial products while maintaining tight regulatory oversight.
Tabby’s Entry Into Saudi Arabia’s Regulated BNPL Market
By licensing Tabby to provide buy-now-pay-later services, the central bank has formally brought one of the region’s prominent BNPL players into its regulated financial framework. The authorization allows Tabby Finance to offer installment-based payment options to Saudi consumers and merchants under rules set by SAMA. This positions the company to compete and collaborate within a growing field of licensed finance providers in the Kingdom.
Advancing Financial Sector Development
SAMA framed the decision as part of its ongoing efforts to support and enable the national finance sector. The regulator aims to enhance the efficiency and flexibility of financial transactions, with BNPL solutions viewed as one lever to make payments more convenient and accessible. At the same time, it continues to encourage innovation in financial services in ways that are consistent with financial stability and consumer protection.
Promoting Financial Inclusion Through Digital Credit
The licensing of Tabby aligns with Saudi Arabia’s ambition to widen financial inclusion using technology-driven products. BNPL services can give a broader segment of consumers access to short-term, point-of-sale financing without the need for traditional credit cards. For merchants, these tools can support higher conversion rates and larger basket sizes, while remaining within a regulated credit environment.
Focus on Consumer Protection and Authorized Providers
Alongside the announcement, SAMA reiterated the importance of dealing only with licensed or permitted financial institutions. The central bank emphasized that consumers and businesses should verify any provider through the official list of authorized entities published on its website. This guidance is intended to protect users from unregulated operators that may not follow prudential standards or consumer protection rules.
Strengthening Confidence in the BNPL Segment
By bringing Tabby Finance under its regulatory umbrella, SAMA is seeking to bolster confidence in BNPL as a legitimate part of the formal credit landscape. A supervised environment can help ensure clearer terms, responsible lending practices, and improved dispute resolution mechanisms for users. It also supports a level playing field among BNPL providers that comply with the same rules and standards.
The licensing of Tabby Finance by the Saudi Central Bank is a clear signal of the Kingdom’s intention to integrate innovative fintech models within a robust regulatory framework. With 68 finance companies now authorized, the market for digital credit and payment solutions is becoming both more dynamic and more tightly supervised. As BNPL adoption grows, SAMA’s approach seeks to balance innovation, inclusion, and consumer protection in Saudi Arabia’s financial system.