Name
Global FinTech Guide
Country _ Name
Saudi Arabia
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

Saudi Arabia is increasingly open to modern payment services to the extent they are compliant (traceable) with the Saudi Central Bank (“SAMA” – formerly referred to as the Saudi Arabian Monetary Authority; the “SAMA” acronym (Saudi Arabian Monetary Authority) remains due to its historical importance) regulations. SAMA has stated its desire to reduce cash usage, which would make it easier to trace cash flow and financial income. 


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

The relevant laws and regulations include:

  • Law of Payments and Payment Services.
  • Implementing Regulations for Law of Payments and Payment Services.
  • Payment Services Provider Regulatory Guidelines.
  • Regulatory Sandbox Framework.
  • Regulatory Sandbox – Application Guidance.
In order to obtain a license, the application consists of two primary parts.

  • Main application form.
  • Supporting documents and checklist for completeness.
In addition to the applicant submitting the license application form and the documents shown in the checklist, SAMA may impose additional requirements in its discretion after submission of the application.

Requirements for licensing request:

  • License application form.
  • Applicant/company's letter to apply for a license to provide payment services, in addition to the shareholders decisions to support the request to obtain SAMA license.
  • Copy of the applicant/company’s organizational documents (AOA/Bylaws), confirming the names of the owners and their shares of ownership.
  • Diagram of applicant/company’s organizational structure, including details of the board structure and senior management positions.
  • Fit and proper form as set by SAMA (including ID and CVs) for each founding shareholder and board member after it is completed, signed by the founding shareholder, and attested by the person authorized to submit the license application.
  • Irrevocable bank guarantee amount equivalent to the minimum capital as described and required for each type of license, issued for the benefit of SAMA from a local bank, and automatically renewed until the full capital is repaid.
  • Proof of commercial registration from the Ministry of Commerce or license from the Ministry of Investment to existing companies.
  • Any of the other documents supporting the license application in accordance with article 6.6 of the Payment Services Providers Regulations.
Submitting application form and supporting documents:

The completed form along with its supporting documents should be submitted (paper copy/ electronic copy) to SAMA.

License Process:

  • After completing the request and the application with all supporting documents submitted to SAMA, it will review and evaluate the request within 90 calendar days. During this period, the applicant may be required to provide additional information at the request of SAMA. As result of missing documents or clarification the application evaluation period may extend beyond 90 calendar days.
  • If SAMA is satisfied that all conditions for licensing set out in the Payment Services Provider regulations have been met, SAMA may grant the license as a PSP, or it could arrange for in-principle approval in order for applicant to complete the registration in MOC according to respective laws and then complete the remaining PSP regulation requirements.
  • SAMA may request an on-site evaluation visit of the applicant at their discretion if additional evaluation is deemed necessary.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

Saudi Arabia, like other jurisdictions, does not permit payment methods that are unregulated or monitored (and discourages related applications, chat websites, etc.).  The Central Bank’s primary focus as it relates to FinTech is its focus on anti-money laundering regulations and the combatting of terrorism.


Economic conditions

Market size for payment services and biggest payment service providers

SAMA recently reported that electronic payments in the retail sector made up over 79% of total payments in 2024, up from 70% of total payments in 2023, and an increase from 62% in 2022. This aligns with the significant growth over the past year, where the number of e-payment transactions reached approximately 12.6 billion, compared to 10.8 billion in 2023, and 8.7 billion in 2022. The most notable platforms in this field include:

  • Stc-pay
  • Mobily-pay  
  • alinma-pay
  • ur-pay
  • Moyasar

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

Saudi Arabia’s promotion of Vision 2030, which is intended to stimulate various investment projects in the tourism industry, is expected to stimulate FinTech in the Kingdom.  Specifically, Saudi Arabia has received over USD 65 billion in foreign direct investment since 2020 (as of 2024), and expects this trend to continue.

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