Tamara granted SAMA authorization for consumer finance and buy-now-pay-later offerings
In a significant milestone, Tamara, a leading fintech company in the Middle East, has officially been licensed by the Saudi Central Bank (SAMA) to provide consumer finance and buy-now-pay-later (BNPL) services. This move positions Tamara as one of 65 finance companies licensed by SAMA, and sets the stage for the company to offer Sharia-compliant BNPL financial products to a broader customer base.
The licensing comes as Tamara continues to gain traction in the region, with its BNPL platform already operational in Saudi Arabia, UAE, and Kuwait. With this license, Tamara can now serve a diverse customer base and diversify its financial product offerings, allowing users to split their purchases into four interest-free installments across key sectors such as e-commerce, airlines, healthcare, insurance, education, fashion, and lifestyle.
This move is expected to benefit both consumers and merchants. Consumers will find it easier to manage their payments, while merchants will experience a boost in sales, reduced cart abandonment, and increased average order values.
In a statement, Abdulmajeed Alsukhan, Co-Founder of Tamara, described the earlier preliminary approval as "the culmination of our ongoing efforts to deliver innovative financial solutions that meet our customers' needs."
Tamara's expansion plans include a strategic partnership with Amazon Payment Services to integrate its BNPL solution into Amazon’s merchant network across Saudi Arabia and the UAE. This collaboration aims to significantly broaden Tamara’s reach in the GCC region by enabling millions of shoppers to access Tamara’s seamless, flexible, and Sharia-compliant payment options directly at checkout.
This partnership aligns with regional market trends towards digital payments and caters to consumer demand for transparency and flexibility. It marks a pivotal move in Tamara’s trajectory, positioning it at the forefront of financial innovation in the Middle East while supporting merchants to tap into new revenue streams and enhance the online shopping experience for digitally savvy consumers.
In December 2023, Tamara became a unicorn with a $350 million Series C funding, further bolstering its position in the fintech industry. The license allows Tamara to offer financing solutions exceeding SAR 5,000 ($1,333), providing customers with greater financial flexibility.
As Tamara continues to grow and innovate, it is poised to make a significant impact on the financial landscape of the Middle East, offering Sharia-compliant BNPL solutions that cater to the needs of both consumers and merchants in the region.
Tamara, newly licensed by SAMA, will now expand its business by offering Sharia-compliant BNPL financial products, allowing users to split their purchases into four installments across various sectors such as e-commerce, airlines, healthcare, insurance, education, fashion, and lifestyle. With this expansion, Tamara aims to leverage investing opportunities in the fintech sector beyond SAR 5,000 ($1,333), thereby creating a significant impact in the financial landscape of the Middle East.
The strategic partnership with Amazon Payment Services will further boost Tamara's reach, enabling millions of shoppers to access its BNPL solution directly at checkout, fostering growth and innovation in the region's digital payment landscape and catering to the consumer demand for transparency and flexibility.
