Saudi Central Bank Greenlights STC Pay’s Transition to STC Bank

In a significant development reshaping the financial landscape of Saudi Arabia, the Saudi Central Bank (SAMA) has granted official approval for the transition of STC Pay, the mobile financial services division of Saudi Telecom Company, into STC Bank. This pivotal decision has empowered the subsidiary to embark on a beta launch of its Sharia-compliant banking offerings, marking a transformative step in its evolution.

STC Pay has announced plans to facilitate the migration of “selected users” from its digital wallet accounts, operational since its inception in 2018, to accounts with STC Bank. The seamless transition promises users a host of enhanced banking services, including the issuance of international bank account numbers (IBANs) and access to additional financial solutions.

Currently, STC Pay’s digital wallet platform offers a comprehensive array of retail and business account services, facilitating both local and international transfers. Notable features include the innovative bill-splitting service, Qattah, and the esteemed Qitaf loyalty program, emblematic of the company’s commitment to delivering unparalleled value to its customer base.

The beta launch represents a significant milestone for STC Pay, building upon its groundbreaking achievement as the first fintech entity in the Kingdom to secure a digital banking license from SAMA in 2021. At that time, the subsidiary outlined its ambitious transformation plans, with Saudi Telecom Company earmarking substantial investment, totalling $213 million, to bolster STC Bank’s digital banking infrastructure and capabilities.

As the beta phase unfolds, STC Pay aims to refine and optimize its banking offerings, paving the way for a full-fledged public launch of STC Bank later in the year. The forthcoming launch is poised to introduce a broader suite of financial solutions, further solidifying STC Bank’s position as a pioneering force driving innovation and financial inclusion in Saudi Arabia’s dynamic fintech landscape.

The transition of STC Pay to STC Bank marks a watershed moment in the Kingdom’s financial sector, underscoring the convergence of technology and banking to meet the evolving needs of consumers and businesses alike. With a steadfast commitment to Sharia-compliant principles and customer-centric innovation, STC Bank is poised to redefine the contours of banking in Saudi Arabia, ushering in a new era of financial empowerment and accessibility.