The Central Bank of Kuwait (CBK) stated that it has approved the testing of a new buy now, pay later (BNPL) product with volunteer consumers and merchants prior to its market introduction.
The test will take place within CBK’s Regulatory Sandbox — a “safe area” that allows FinTech products and services to be tested without getting formal licenses — so that the product may be reviewed, analyzed, and improved, according to a press statement issued by CBK on Sunday.
According to the press release, CBK is enabling this “to enable contemporary financial technology in the State of Kuwait and to strengthen its role in embracing and fostering innovation, in a way that supports the introduction of creative business models.”
According to the “Buy Now, Pay Later Tracker,” BNPL solutions are the fastest-growing online payment option in the United States, Australia, Brazil, the United Kingdom, and many other countries, with a market share of $656 billion by 2026.
CBK stated in the statement that it is drafting instructions to regulate BNPL in the Kuwaiti market as part of its efforts to build regulations to encourage innovative business models in the financial services industry.
In 2018, the CBK oversaw the implementation of the Regulatory Sandbox, which was one of the most significant digital improvements to the country’s banking and finance regulation.
