Kuwait’s Central Bank Asks Volunteers to Test Its BNPL Product

The Central Bank of Kuwait (CBK) announced that it has allowed a new buy now, pay later (BNPL) product to begin testing with volunteer customers and merchants before launching in the market.

The test is to take place within CBK’s Regulatory Sandbox — a “safe space” that allows for the testing of FinTech products and services without obtaining official licenses — so that the product can be assessed, evaluated and enhanced, CBK said Sunday (Oct. 23) in a press release.

CBK said in the release that it is allowing this “to enable modern financial technologies in the State of Kuwait and to enhance its role in adopting and encouraging innovation, in a way that promotes the introduction of innovative business models.”

PYMNTS research has found that BNPL is one of the most significant emerging trends in the world economy.

Read more: Exploring Varying Uses of BNPL Options Among Generations and Income Groups

BNPL solutions are the fastest-growing online payment method in the United States, Australia, Brazil, the United Kingdom and many other countries, and their market share is projected to realize a global transaction value of $656 billion by 2026, as reported in the “Buy Now, Pay Later Tracker,” a PYMNTS and Splitit collaboration.

CBK said in the release that as it aims to develop policies to support new business models in the financial services industry, it is drawing up instructions to regulate BNPL in the Kuwaiti market.

As PYMNTS reported in July, the launch of the Regulatory Sandbox overseen by CBK in 2018 was among the foremost digital reforms to the country’s banking and finance regulation.

See more: Partnerships, PayTech Innovation Move Kuwait Into Digital Era

This move has accelerated Kuwait’s pace of development in recent years, from a regulatory perspective, although it has at times lagged behind some of its more FinTech-friendly neighbors.

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