Tamara Secures SAMA Preliminary Approval for Consumer Finance Licence, Expanding BNPL Scope

Saudi fintech Tamara has received preliminary approval from the Saudi Central Bank (SAMA) for a consumer finance licence, a regulatory milestone that significantly expands the buy-now-pay-later platform's addressable market in the Kingdom.

The licence, once fully granted, will allow Tamara to offer financing solutions exceeding SAR 5,000 per transaction, removing the cap that has limited BNPL providers to smaller-value purchases. The expansion opens up higher-value categories including electronics, furniture, and travel, where instalment financing is in high demand but has been largely served by traditional bank lending products.

Tamara, which has become one of the most widely used BNPL platforms in Saudi Arabia and the broader Gulf, has been pursuing the consumer finance licence as part of its strategy to evolve beyond its original BNPL model into a broader financial services provider.

SAMA's preliminary approval signals regulatory confidence in Tamara's compliance and operational capabilities. The Saudi regulator has been progressively developing its framework for fintech licensing, creating pathways for digital-native financial services companies to operate alongside traditional banks under appropriate regulatory oversight.

The BNPL market in Saudi Arabia has grown rapidly, driven by a young, digitally connected population and high smartphone penetration. Tamara's merchant network spans thousands of retailers across the Kingdom, giving it significant distribution advantage as it expands into higher-value financing.

The full consumer finance licence was subsequently granted by SAMA in March 2025, completing Tamara's transition from a payments-focused BNPL provider to a licensed consumer finance company.