SAMA Announces Issuance of Second Release of Open Banking Framework

The Saudi Central Bank (SAMA) has issued the second release of its Open Banking Framework, focusing on Payment Initiation Services that standardise how financial sector participants can offer secure, regulated payment capabilities to third-party providers.

The updated framework establishes the technical standards, security requirements, and consent protocols for payment initiation, enabling authorised fintechs and service providers to trigger bank transfers on behalf of customers with their explicit consent. This capability allows consumers to make payments directly from their bank accounts through third-party apps without needing to share their banking credentials.

The first release of Saudi Arabia's Open Banking Framework focused on account information services, enabling data sharing between banks and authorised providers. The addition of payment initiation represents a significant expansion, creating the infrastructure for new payment products and services that bypass traditional card networks.

Payment initiation is considered one of the most commercially significant aspects of open banking, as it enables fintechs to offer payment solutions that are potentially cheaper and faster than card-based transactions. Use cases include e-commerce checkout, recurring bill payments, and account-to-account transfers initiated through non-bank apps.

SAMA's phased approach to open banking regulation mirrors the methodology adopted by regulators in the UK and EU, where account information services were implemented before payment initiation. The framework forms part of Saudi Arabia's broader fintech strategy under Vision 2030, which aims to create a dynamic, technology-driven financial sector.

Licensed fintechs including Lean Technologies are expected to be among the first to deploy payment initiation services under the new framework.