Finablr's BayanPay secures licence from Saudi Arabia's regulator for digital payments

The digital payments solutions provider aims to facilitate non-cash payments in line with the kingdom's Vision 2030 programme

Finablr plans to expand operations in Saudi Arabia following the payment solutions provider BayanPay securing its SAMA licence. Courtesy Finablr

BayanPay, a digital payment solutions provider that is majority-owned by UAE's Finablr, secured a licence from the Saudi Arabian Monetary Authority (Sama) allowing it to execute transactions in the kingdom for consumers and businesses.

“Saudi Arabia is a fast-evolving market in the payments space with the right infrastructure readiness and a conducive regulatory framework," Promoth Manghat, group chief executive of Finablr, said on Wednesday. "Through BayanPay, Finablr will support the kingdom’s strategic objectives of becoming a cashless society, one of the goals of the Financial Sector Development Programme under Saudi Vision 2030."

According to Sama’s estimates, non-cash payments for the retail sector amounted to more than 36 per cent of all payments in Saudi Arabia as of July 2019. The country is aiming to increase non-cash payments to 70 per cent by 2030 under Vision 2030.

Finablr, listed on the London Stock Exchange, acquired a majority stake in BayanPay in 2019, providing the group an entry into Saudi Arabia. E-commerce in the kingdom is gathering pace with a 68 per cent user penetration rate, which is expected to rise to 73.5 per cent by 2024, according to Statista. About $1.7 billion (Dh6.24bn) is generated in revenue from e-commerce in the kingdom at the moment which is projected to rise to $1.9bn by 2024. The most common methods of payment in Saudi Arabia for e-commerce transactions are credit cards and digital wallets.

BayanPay offers services including BayanPay business and BayanPay wallet, that enable customers in the kingdom to make seamless and cross-border payments. Saudi Arabia is the second-largest remittance market with outflows of $43bn in 2018, according to World Bank data.

“Our digital solutions support the development and diversification of the economy by enhancing payment efficiencies for consumers, businesses and the government,” said Fahad Al Fawaz, chairman and founder of BayanPay.

Finablr, whose brands include Travelex and UAE Exchange posted a 9 per cent rise in adjusted income for nine months as volumes grew in double digits.

The company's adjusted income increased to $1.2bn in the nine months ending September 30. The group's nine-month adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) climbed 22.1 per cent year-on-year to $182 million.

E-commerce, delivery and transport are among the top industries attracting the biggest number of deals and the highest investments into start-ups in Saudi Arabia, since the country has the Arab world's largest economy and digitally-savvy population, according to start-up data platform Magnitt.