The Saudi Central Bank (SAMA) has announced the issuance of the second release under the Open Banking Framework, focused on the Payment Initiation Service (PIS). SAMA also permitted 2 fintech startups to test their solutions in its regulatory sandbox.
Why it Matters? This is a significant advancement in Saudi Arabia’s fintech sector, poised to transform financial transactions and bank transfers for both individuals and businesses.
More Details:
- The second release includes a set of guidelines and technical standards to enable banks and fintech companies to offer the service.
- It will allow fintech customers, both individuals and businesses, to initiate payments directly from their bank accounts securely.
- SAMA authorized XSquare and NeotTe to launch Open Banking platforms.
- The number of authorized companies under SAMA’s Regulatory Sandbox increased to 19.
- Since its inception in 2018, SAMA’s Regulatory Sandbox has permitted 50 FinTechs to test and refine their offerings in a controlled environment.