Yesterday, the Qatar Central Bank issued its first license in the country to Bay Lart, to carry out services, “Buy now and pay later.” The Central Bank of Qatar indicated, in a statement yesterday, that this issue comes as a continuation of the efforts made to enhance the financial technology sector, bringing the number of companies subject to the bank’s supervision and control in the financial technology sector to 13 companies.
In August of last year, Qatar Central Bank issued executive instructions to organize a service “Buy now and pay later”, where all companies wishing to work in this field can mandate applied for a license from Qatar Central Bank.
In his instructions, the Central revealed that a product or service “Buy now and pay later” is a short -term credit product based on installments that are provided to customers, either via the Internet or traditionally, to buy goods or services, where the customer pays the amount of the transaction over a period of time for the lender -the company provided to the service -.
The Central has set the ceilings of transactions for the service, as the total credit granted to one customer before all service providers at any time should not exceed 25 thousand riyals, with a maximum.
75 % of the monthly salary
For Qatari citizens, the total monthly installments due should not exceed 75 % of the customer’s monthly salary in addition to the social allowance.
For foreigners residing in the country, the total monthly installments due should not exceed 50% of the total monthly salary of the customer, and the service provider must reject the customer unless he meets his credit policy and the policy of credit risk management in force.
The executive instructions issued by the Central Bank of Qatar include defining the regulatory and supervisory framework for practicing services “Buy now and pay later” in the State of Qatar, whether they were presented in a traditional or electronic way through the service provider, and to ensure that customers provide adequate protection, and protect customer rights from unfair lending practices. In addition to encouraging the development of the consumer credit sector, the provisions of these instructions shall apply to any person who provides a product or service now bought and pushed later in the country.
It must be available in a product or service “Buy now and pay later” the following criteria:
– A product or service is provided “Buy now and pay later” to the customer (individual) to buy products or services from traders inside or outside the country.
– A short -term credit facilitation is provided without interest, as the payments are divided into installments distributed over 12 months or less, with or without requesting a fixed service fee by the service provider.
– The service provider should bear the full credit risks to the provider
– To be considered an uninterrupted lending product
It is not allowed to provide a service to buy now and pay later except for individuals residing in the age of 18 years or more. The provisions of these instructions are not applied to banks and financing companies licensed by the Qatar Central Bank.