Saudi Central Bank Advances Open Banking Framework with Payment Initiation Services
The Saudi Central Bank (SAMA) is progressing with its Open Banking Framework, a key element of Saudi Arabia's Vision 2030 digital transformation agenda. Following the introduction of Account Information Services (AIS), the market is now moving into Payment Initiation Services (PIS). PIS enables licensed third parties to initiate payments directly from customer bank accounts using secure APIs. This development aims to facilitate seamless Account-to-Account (A2A) payments as an alternative to traditional card payments, foster new fintech-led payment journeys, and stimulate innovation within the market. Financial institutions in Saudi Arabia face a mandatory regulatory deadline for this transition, which also presents a strategic opportunity to gain early transaction volumes. Many institutions are currently viewing PIS primarily as a compliance exercise rather than a chance for market leadership. The implementation of PIS requires banks to develop a robust technical infrastructure, including API design, FAPI ...
