The Central Bank of Kuwait announced the approval to test its “Buy Now Pay Later” service by making it available in the local market through an application catering to a specific category of volunteer customers and merchants that will evaluate and test the service before permanently using it.
The bank released a statement indicating its keenness to support innovative business models based on modern financial technologies, providing added value to the user and the local market. Bank officials said that it allows the customer to purchase from electronic stores participating in the product testing process, and pay electronically in a deferred and flexible manner, provided it is a one-time payment or through a specific number of installments in limited amounts, without the customer bearing any burdens related to the imposition of interests or fees.
In addition, it also gives the merchant an opportunity to provide services to customers and enable easier management of operations, as well as see the details of purchases, payments and the return process. The bank is also keen on providing appropriate policies and supervisory instructions to support advanced business models in the contemporary financial services industry, as instructions are being prepared to regulate postpaid business appropriate to the local market and define the legal umbrella for the project.
Further, the bank emphasized the role of the general framework of the pilot regulatory environment, to evaluate and test innovative financial technology products and develop them, in a safe testing environment, which contributes to stimulating innovation and increasing the efficiency of advanced business models by identifying regulatory requirements and enhancing risk management, without exposing the financial and banking system to risks. It will also continue its role as a catalyst for the field of modern financial technologies in the country to contribute to the realization of Kuwait’s Vision 2035, “New Kuwait”.
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