Tamara acquires SAMA authorization for consumer finance and Buy Now Pay Later (BNPL) operations
Tamara Expands Financial Services with Sharia-Compliant BNPL Offerings
Saudi Arabia-based fintech company, Tamara, has received an official license from the Saudi Central Bank (SAMA) to provide consumer finance and buy-now-pay-later (BNPL) services. This move allows Tamara to offer financing solutions exceeding SAR 5,000 ($1,333) and marks a significant expansion in its financial services.
With this license, Tamara can now provide a wider range of sharia-compliant BNPL and flexible payment solutions tailored for Saudi Arabia and the wider GCC region. The company's BNPL platform, already operational in Saudi Arabia, UAE, and Kuwait, will see several enhancements.
One of the key changes is the removal of late fees, aimed at enhancing the customer experience and aligning with socially responsible, customer-centric financial solutions. Customers will also benefit from flexible installment payment options, allowing them to split purchases over terms of up to 36 months using either debit or credit cards.
Tamara has also integrated with Amazon Payment Services, enabling merchants across Saudi Arabia and the UAE to offer seamless, split payment solutions to their customers. This integration is expected to increase merchant accessibility across various key sectors, including airlines, e-commerce, healthcare, insurance, education, fashion, and lifestyle.
In addition, Tamara will provide advanced payment tools for merchants, such as reporting dashboards and streamlined reconciliation processes, to support business growth and improve payment flexibility.
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."
This expansion not only fosters hassle-free, transparent, and sharia-compliant financial products but also improves loyalty and sales for merchants by providing a simple, flexible payment experience that meets evolving consumer needs across the Saudi and GCC markets.
Tamara became a unicorn with a $350 million Series C in December 2023, and this latest expansion is expected to further solidify its position in the region's fintech landscape. The announcement was made by SAMA on Monday, indicating that Tamara can now serve a broader customer base and diversify its financial product offerings.
[1] Tamara's Official Press Release [2] SAMA's Official Announcement [3] Article on Tamara's Expansion [4] Tamara's Series C Funding Announcement
[1] The expansion allows Tamara to offer a wider range of sharia-compliant BNPL and flexible payment solutions, utilizing advanced technology, in the business sector, extending its financial services to a broader customer base across Saudi Arabia and the GCC region.
[2] With this move, Tamara will provide merchants in various key sectors, such as airlines, e-commerce, healthcare, insurance, education, fashion, and lifestyle, with advanced payment tools, enabling seamless and split payment solutions that improve loyalty and sales by meeting evolving consumer needs.
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