Saudi Central Bank Expands Open Banking as African Fintechs Scale Digital Payments

Regulators and payment networks move to accelerate fintech technology adoption across the Middle East and Africa. New licensing, partnerships, and instant payment upgrades aim to boost digital acceptance and cross-border flows.

Published: January 12, 2026 By Sarah Chen, AI & Automotive Technology Editor Category: Fintech

Sarah covers AI, automotive technology, gaming, robotics, quantum computing, and genetics. Experienced technology journalist covering emerging technologies and market trends.

Saudi Central Bank Expands Open Banking as African Fintechs Scale Digital Payments
Executive Summary
  • Saudi Central Bank advances open banking implementation alongside new licensing updates for fintechs (SAMA announcements).
  • Visa and Mastercard announce Middle East and Africa collaborations to expand contactless and SME acceptance (Visa, Mastercard press centers).
  • African payment platforms including Flutterwave and Paystack scale merchant services and cross-border capabilities across key markets.
  • Central banks in the UAE and South Africa highlight instant payments and interoperability priorities (CBUAE news, SARB media).
Regulatory Momentum and Infrastructure Upgrades Regulatory agencies in the Middle East and Africa are prioritizing frameworks to accelerate digital finance adoption. The Saudi Central Bank (SAMA) has published recent updates on open banking implementation and licensing of payment and finance companies, signaling continued progress through December 2025 and into January 2026 (SAMA Open Banking, SAMA News). In the UAE, the Central Bank has outlined ongoing enhancements to national payment infrastructure, including bank-led initiatives that strengthen real-time settlement and data-sharing for financial services (CBUAE Payment Systems, CBUAE News). Across Africa, regulators emphasize consumer protection and interoperability as key to scaling digital payments. The South African Reserve Bank has continued communicating milestones related to instant payments modernization and market supervision, reinforcing targets for merchant acceptance growth and cross-industry coordination (SARB Payments and Settlements, SARB Media). In parallel, policy dialogues from pan-African bodies and development finance institutions underscore the need for cross-border standards to support remittances and SME commerce (World Bank Financial Sector, African Development Bank Initiatives). Network Partnerships and Merchant Enablement Global payment networks have highlighted new collaborations to expand acceptance across Middle East and Africa markets. Recent partner updates from Visa emphasize contactless growth, Click to Pay enablement, and support for small businesses through local acquirers and fintech partners, including programs tailored to cash-heavy segments (Visa Newsroom). Mastercard has similarly reported MEA initiatives that include Tap on Phone, open banking connectivity, and cybersecurity support for financial institutions and payment service providers (Mastercard Newsroom). These network efforts build on the regional integration work by acquirers such as Network International, which has expanded acceptance solutions for SMEs and e-commerce partners in the Gulf and Africa, and telecom-led wallets like Safaricom M-Pesa that continue to bring merchant payments and P2P transfers to unbanked users (Network International News, Safaricom Media Center). For more on related Fintech developments. African Fintech Platforms Scale Cross-Border and SME Services Pan-African payment platforms are scaling infrastructure to support merchants and remittances. Flutterwave has continued to expand payment acceptance offerings and enterprise integrations across West and East Africa, emphasizing compliance and settlement speed through bank and network partnerships (Flutterwave Press). Paystack, part of Stripe, reports ongoing product improvements supporting card and alternative payments for startups and SMEs in Nigeria, Ghana, Kenya, and South Africa (Paystack Blog, Stripe Newsroom). Telecom and super-app ecosystems remain central to user acquisition and transaction growth. MTN Group continues to promote mobile money adoption and merchant tools across its footprint, aligning product roadmaps with regulatory priorities and interoperability plans (MTN Newsroom). These platform strategies are increasingly coordinated with local banks and regulators to ensure KYC/AML compliance and secure settlement, supporting stabilization of new corridors and domestic use cases (FATF guidance, BIS publications). This builds on broader Fintech trends. Key Adoption Metrics and Institutional Signals Institutional signals across MEA reflect sustained investment in payment rails, account-to-account transfers, and open banking APIs. Aggregated updates from recent press releases and regulator portals indicate continued issuance of licenses and sandbox approvals, rising merchant onboarding in key cities, and expanded real-time payment functionality—all intended to lower costs and improve access (SAMA News, CBUAE News, SARB Media). Payment networks and acquirers have also reported new features for authentication and risk scoring to complement regulatory AML/CFT requirements (Mastercard Newsroom, Visa Newsroom). Industry analysts note that merchant digitization and standardized APIs are crucial to sustaining momentum in 2026, especially for cross-border trade and SME lending tools integrated within payment platforms. Reports and working papers from policy institutions emphasize the importance of data portability, transparency, and settlement certainty to reduce friction and improve financial inclusion outcomes (McKinsey financial services insights, Gartner financial services research, BIS). Company and Regulator Signals Snapshot
EntityRecent FocusGeographySource
Saudi Central Bank (SAMA)Open banking and licensing updatesSaudi ArabiaSAMA News
Central Bank of the UAE (CBUAE)Instant payments and infrastructure enhancementsUnited Arab EmiratesCBUAE News
South African Reserve Bank (SARB)Instant payments modernizationSouth AfricaSARB Media
VisaContactless, Click to Pay, SME acceptance initiativesMEAVisa Newsroom
MastercardTap on Phone, open banking, cybersecurity supportMEAMastercard Newsroom
Network InternationalMerchant acquiring and acceptance expansionGCC and AfricaNetwork International News
FlutterwaveMerchant services and cross-border paymentsAfricaFlutterwave Press
PaystackCard and alternative payments, SME toolsAfricaPaystack Blog
Implementation Outlook and Risks Implementation timelines hinge on regulator-approved pilots, acquirer integrations, and merchant readiness. Banks across the Gulf continue to invest in open banking APIs, cloud-native platforms, and real-time risk analytics aligned with regulator guidance, while African payment platforms emphasize corridor expansion, payout optionality, and stronger authentication (SAMA Open Banking, CBUAE Payment Systems). Payment networks and acquirers are prioritizing ease of onboarding, standardized SDKs, and merchant tools designed for micro, small, and medium enterprises (Mastercard Newsroom, Visa Newsroom). Key risks include compliance fragmentation, cybersecurity threats, and cross-border settlement variability. Industry sources point to the need for interoperable standards, improved data governance, and robust incident response to mitigate fraud and operational risk (BIS, FATF, McKinsey). As governments and private-sector stakeholders coordinate on licensing and infrastructure, adoption is expected to continue trending upward through 2026, with merchants and consumers benefiting from lower costs and faster settlement (Gartner). FAQs { "question": "What recent regulatory actions support fintech technology adoption in the Middle East and Africa?", "answer": "Regulators have highlighted progress on frameworks that enable secure data sharing, licensing, and instant payments. The Saudi Central Bank (SAMA) has communicated ongoing open banking and licensing updates, while the Central Bank of the UAE (CBUAE) continues enhancing national payment infrastructure. The South African Reserve Bank (SARB) has prioritized modernization of instant payment systems and market supervision. These actions collectively seek to improve interoperability, reduce transaction costs, and expand merchant acceptance, laying groundwork for higher digital payment volumes." } { "question": "Which companies are expanding digital acceptance and merchant services in MEA right now?", "answer": "Global networks such as Visa and Mastercard report regional initiatives spanning contactless acceptance, Click to Pay, Tap on Phone, and SME enablement, often working through local acquirers and fintech partners. Acquirers like Network International are growing merchant onboarding in the Gulf and Africa. African platforms including Flutterwave and Paystack are scaling card and alternative payments, settlement speed, and cross-border options for SMEs. Telecom-led solutions like Safaricom’s M-Pesa further extend reach to unbanked consumers and small merchants." } { "question": "How are open banking and instant payments influencing technology adoption?", "answer": "Open banking encourages standardized APIs and secure data portability so providers can offer tailored products like account-to-account payments and embedded finance. Instant payments lower friction, reduce settlement latency, and enable new use cases such as real-time payroll, disbursements, and request-to-pay. Regulators in Saudi Arabia and the UAE emphasize these pillars, while African markets pursue interoperability for domestic and cross-border transactions. Together, these capabilities help merchants digitize and widen access to financial services." } { "question": "What are the main risks for fintech adoption in MEA and how are they being addressed?", "answer": "Key risks include regulatory fragmentation across jurisdictions, cybersecurity threats, and cross-border settlement uncertainty. Industry and policy bodies recommend standardized data governance, strong KYC/AML controls, and harmonized operational playbooks to manage fraud and resilience. Payment networks and banks report investments in authentication, tokenization, and real-time risk scoring. Coordinated pilots and sandboxes help align stakeholders, while public guidance from BIS and FATF supports best practices for scaling digital payments responsibly." } { "question": "What does the near-term outlook for MEA fintech adoption look like in 2026?", "answer": "Analysts expect continued momentum driven by merchant digitization, API standardization, and real-time payment capabilities. For more on [related ai film making developments](/studios-pilot-long-form-ai-video-as-runway-google-and-nvidia-step-up-r-d-on-scene-level-control-12-12-2025). As regulators advance open banking and instant payments, acquirers and fintech platforms aim to reduce onboarding friction and extend acceptance tools to micro and small businesses. Telecom wallets and cross-border solutions should deepen regional commerce, particularly in high-growth corridors. With coordinated investments and compliance frameworks, adoption is projected to rise steadily, improving access and lowering transaction costs across the region." } References

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Sarah Chen

AI & Automotive Technology Editor

Sarah covers AI, automotive technology, gaming, robotics, quantum computing, and genetics. Experienced technology journalist covering emerging technologies and market trends.

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Frequently Asked Questions

What recent regulatory actions support fintech technology adoption in the Middle East and Africa?

Regulatory bodies are advancing frameworks that enable secure data sharing, licensing, and instant payments. The Saudi Central Bank (SAMA) has posted updates around open banking and licensing for payment providers, while the Central Bank of the UAE (CBUAE) continues to highlight enhancements to national payment systems. The South African Reserve Bank (SARB) communicates progress on instant payments modernization and oversight. Together, these actions aim to improve interoperability, reduce transaction costs, and expand merchant acceptance across the region.

Which companies are expanding digital acceptance and merchant services in MEA right now?

Payment networks such as Visa and Mastercard have reported Middle East and Africa collaborations to broaden contactless acceptance, Click to Pay, Tap on Phone, and SME enablement. Acquirers like Network International are extending merchant onboarding in the Gulf and Africa. African platforms including Flutterwave and Paystack are scaling card and alternative payments, settlement speed, and cross-border options for SMEs. Telecom wallets like Safaricom’s M-Pesa continue to reach unbanked consumers and small merchants.

How are open banking and instant payments influencing technology adoption?

Open banking encourages standardized APIs and secure data portability, enabling providers to deliver account-to-account payments and embedded finance with improved personalization. Instant payments reduce latency and unlock new use cases such as request-to-pay, real-time payroll, and instant disbursements. Regulators in Saudi Arabia and the UAE emphasize these pillars, while African markets prioritize interoperability for domestic and cross-border flows. These capabilities help merchants digitize operations and expand access to formal financial services.

What are the main risks for fintech adoption in MEA and how are they being addressed?

Key risks include compliance fragmentation across jurisdictions, cyber threats, and variability in cross-border settlement. Industry bodies suggest standardized data governance, strong KYC/AML controls, and harmonized operating procedures to mitigate fraud and resilience challenges. Payment networks and banks invest in authentication, tokenization, and real-time risk scoring to protect transactions. Coordinated sandboxes and pilots help align stakeholders, while guidance from BIS and FATF supports secure scaling of digital payments.

What is the near-term outlook for MEA fintech adoption in 2026?

Momentum is expected to remain strong due to merchant digitization, API standardization, and real-time payment capabilities. As regulators advance open banking and instant payments, acquirers and fintech platforms aim to reduce onboarding friction and expand tools for micro and small businesses. Telecom wallets and cross-border solutions should deepen regional commerce, especially in high-growth corridors. With coordinated investments and compliance frameworks, adoption is projected to rise steadily, lowering costs and improving access for consumers and SMEs.