Saudi Arabian Monetary Authority (SAMA) regulation on mandatory electronic payment system; for all retail activities in Saudi Arabia became effective on Tuesday.
SAMA had given advance notice of the new regulation to banks and payment services companies operating in the Kingdom. This is to facilitate installation of e-payment gadgets in the retail sector.
The new regulation is in line with the SAMA strategy to enhance electronic payment and reduce dealing in cash.
It is also in continuation of SAMA’s efforts to activate the use of electronic channels; through the implementation of the integrated digital payments strategy program and upgrade the level of electronic services.
SAMA added that this is in addition to being a step within the sphere of enhancing customer service and protection; which the authority seeks to achieve through its keenness to provide these sectors with an advanced level of fair and safe treatment, and to ensure the spread of financial services at all levels.
In a circular addressed to banks, payment service providers and the Saudi Payments Company; SAMA also stated that the National Program to Combat Commercial Cover-up (Tasattur). This is in cooperation with the authority, ministries of municipal and rural affairs and commerce, also made it obligatory for all retail sector activities in the Kingdom to provide electronic payment methods starting Aug. 25.