The Central Bank of Kuwait (CBK) has approved the testing of a new buy now, pay later (BNPL) product with volunteer customers and merchants before its market debut.
According to a press release published by CBK on Sunday, the test will take place within CBK’s Regulatory Sandbox — a “safe region” that allows FinTech products and services to be tested without obtaining official licenses — so that the product may be examined, analyzed, and improved.
CBK is enabling this “to enable current financial technology in the State of Kuwait and to improve its role in embracing and promoting innovation, in a way that promotes the introduction of new business models,” according to the press release.
BNPL solutions are the fastest-growing online payment option in the United States, Australia, Brazil, the United Kingdom, and many other countries, according to the “Buy Now, Pay Later Tracker,” with a market share of $656 billion by 2026.
According to the statement, CBK is writing instructions to govern BNPL in the Kuwaiti market as part of its efforts to develop legislation to support new business models in the financial services industry.
The CBK handled the launch of the Regulatory Sandbox in 2018, which was one of the country’s most important digital advancements in banking and finance regulation.
