Tamara obtains SAMA authorization for consumer credit and Buy Now, Pay Later services
Saudi-Based Fintech Firm Tamara Expands Regionally with SAMA's License
Tamara, a Saudi-based fintech company, has received an official license from the Saudi Central Bank (SAMA) to provide consumer finance and buy-now-pay-later (BNPL) services. This move is a reflection of SAMA's commitment to promoting financial inclusion and innovative solutions in the Kingdom of Saudi Arabia.
With this license, Tamara can now offer financing solutions exceeding SAR 5,000 ($1,333). The company has been actively expanding in the UAE market, offering BNPL solutions to merchants and consumers there. A notable recent development is its partnership with Amazon Payment Services to extend BNPL offerings to merchants in the UAE, broadening its regional footprint and merchant network beyond Saudi Arabia.
Tamara's BNPL platform allows users to split their purchases into four installments, making it an attractive option for consumers seeking flexible payment options. The company's expansion occurs within a highly competitive and evolving BNPL landscape in the UAE, where it competes with local players like Tabby and Spotii.
The UAE Central Bank's enhanced regulatory framework introduced in 2023 has imposed stricter licensing and compliance requirements on BNPL providers to ensure consumer protection and responsible lending. Tamara and its peers must align with these regulations while scaling their services.
The BNPL sector in the UAE is growing beyond retail into sectors such as healthcare and automotive, reflecting the flexibility and broad appeal of consumer finance products like those Tamara offers. Partnerships with established financial institutions, such as Amazon Payment Services in Tamara's case, help enhance trust, regulatory compliance, and broader adoption of BNPL services.
The licensing of Tamara by SAMA is a testament to SAMA's efforts to promote financial inclusion and innovative solutions in the financial sector of Saudi Arabia. It is also part of SAMA's strategic focus on enhancing the efficiency of financial transactions and promoting innovative solutions for financial inclusion in the Kingdom.
Abdulmajeed Alsukhan, Co-Founder of Tamara, described receiving preliminary approval as "the culmination of our ongoing efforts to deliver innovative financial solutions that meet our customers' needs." The license enables Tamara to serve a broader customer base and diversify its financial product offerings.
As a result, Tamara is now one of 65 finance companies licensed by SAMA. The company operates its BNPL platform in Saudi Arabia, UAE, and Kuwait, positioning itself as a significant player in the regional fintech scene. The licensing of Tamara by SAMA is a step towards financial inclusion in Saudi Arabia and a move to promote innovative financial solutions for a broader customer base.
Investing in Tamara, the Saudi-based fintech firm, could provide opportunities for business growth, given its expansion from Saudi Arabia into the UAE and other Middle Eastern markets. In this regionally expanding business, Tamara focuses on providing consumer finance and buy-now-pay-later services, actively seeking partnerships with established financial institutions to ensure compliance and trust.
Since receiving a license from SAMA, Tamara has been offering financing solutions exceeding SAR 5,000 ($1,333) and has entered the UAE's highly competitive and evolving BNPL market, where it competes with local players like Tabby and Spotii. By partnering with Amazon Payment Services, Tamara aims to extend its BNPL offerings, attract consumers seeking flexible payment options, and expand its merchant network.
