Saudi Central Bank (SAMA) has issued the Implementing Regulations for the Law of Payments and Payment Services in line with its ambition of enhancing the Kingdom’s digital payment architecture’s soundness and efficiency.
The new framework is designed to be compatible with comparable international principles and standards, including the Principles for Financial Market Infrastructures.
Apart from enhancing the integrity and efficiency of Saudi Arabia’s payment system infrastructure, the law, applicable to all payment systems and their operators, also aims to deepen the protection of users and promote innovation and competition within the payment space.
“In the context of Saudi Vision 2030 with respect to financial inclusion, the implementing regulations should help create an attractive environment for investment, stimulate innovation and competition and encourage [the] introduction of payment products and services that follow the latest international trends and meet clients’ needs,” noted the central bank.
As part of its Vision 2030 strategy, the Kingdom targets to raise the adoption of cashless payments to 70% of all transactions by 2025. In 2022, the share of electronic payments in the Saudi retail sector exceeded the 60% target set by the Financial Sector Development Program.
This new set of regulations has been published following a period of market feedback. Coming into effect on the 6th July 2023, it supersedes the Payment Service Provider Regulations.