CBK Will Test A BNPL Product Inside Its Regulatory Sandbox
The Central Bank of Kuwait (CBK) has permitted a new Buy Now Pay Later (BNPL) product to begin testing by launching it in the local market within the Regulatory Sandbox with a group of willing customers and merchants to completely assess and evaluate the product. The CBK is keen to enable modern financial technologies in the State of Kuwait and to enhance its role in adopting and encouraging innovation.
This information was provided to the CBK in a statement, which highlighted the CBK’s desire to foster creative Fintech-based business models that would provide value-added services to customers in particular and the local market in general. With the new solution, clients may make purchases from the partnering online merchants and make flexible, delayed payments online. Future payments are made either all at once or in small, predetermined instalments without charging clients any interest or other costs. The programme gives the business owner the chance to offer his goods and services to clients, manage his banking activities with ease, and access all information about the procedures for sales, payments, and returns.
BNPL in the Kuwaiti market is being regulated, and new instructions are being developed to define the legal aspects of this activity, according to CBK, which also stated that it aims to develop supervisory policies and instructions to support the new business models in the financial services industry.
The Regulatory Sandbox Framework’s importance in providing a secure environment for evaluating, improving, and assessing Fintech products was emphasised by the Central Bank of Kuwait. By recognising their regulatory requirements and improving risk management, this in turn promotes innovation and boosts the effectiveness of these novel business models without putting the financial and banking system at excessive danger.
CBK finished by reiterating its commitment to its position as a catalyst and promising to use cutting-edge technologies to help Kuwait Vision 2035 “New Kuwait” become a reality.
