KadiPay has received approval from the Saudi Central Bank (SAMA) to provide buy-now-pay-later (BNPL) solutions, bringing the number of authorized BNPL service providers in the Kingdom to six.
Founded in 2022, KadiPay is currently a team of seven including its three co-founders. The company has aligned its business model with Shariah principles.
“KadiPay was born out of a promise to bring a new, unique payment solution that aligns with the principles of Islamic Shariah,” according to its website. IFN Fintech has reached out to KadiPay to confirm the status of its Shariah pronouncement.
Licensing BNPL operators is in line with the Kingdom’s National Fintech Strategy which was designed with achieving Saudi Vision 2030 in mind.
SAMA Governor Ayman Al-Sayari last month announced that the regulator aims to increase the number of fintech companies in Saudi Arabia to 525 by 2030.
This is a big leap from the initial target of 230 set last year under the Fintech Strategy Implementation Plan.
The apex bank projected the 525 fintech companies would create 18,000 jobs and generate SAR13.3 billion (US$3.54 billion) in direct GDP contributions.
Almost doubling its target seems feasible considering the growth in fintech companies Saudi Arabia has experienced: from just 89 registered firms in 2022, Saudi as at the end of August 2023 has registered over 200 fintech companies.