Regulatory Alerts2020-08-17
Readiness to Receive Requests for Installing Electronic Payment Methods for All Retail Sector Activities
Issued by the Saudi Central Bank’s Banking Policies Department, this circular mandates all banks and payment service providers to be fully prepared to receive requests for installing authorized electronic payment methods, including Mada point-of-sale terminals and digital wallets, across all retail sector activities. Effective from 25 August 2020, the directive requires financial institutions to promptly open merchant accounts and digital wallets while strictly applying accurate Merchant Category Codes (MCC) in compliance with established regulatory and operational rules. The Bank further instructs institutions to coordinate internally with branches and customer service departments to ensure staff accurately handle public inquiries, thereby supporting the national objective of achieving a 70% electronic payment ratio by 2030.