The buy-now-pay-later scheme, which is becoming hugely popular in the US and European markets, is among several latest fintech trends that Qatar needs to embrace, an official from the Qatar Financial Centre (QFC) said yesterday.
Addressing the FinTech Summit Middle East, Chief Financial Sector Officer at the QFC Henk Jan Hoogendoorn said the new financing scheme which allows consumers to purchase goods and pay for them later in installments, will be a major threat to credit card companies.
“But for now, it is not yet allowed in Qatar. So I would encourage the regulator to accept this somehow,” he added.
Speaking to The Peninsula on the sidelines of the event, Hoogendoorn said a number of startups in Qatar have already been considering the new payment scheme, but it will need the regulation of the Qatar Central Bank (QCB). “Some people have the idea to do something like this, but at the moment, this will be seen in Qatar as providing credit. And that is a regulated activity, and falls under the regulations of the QCB. So if the QCB would like to regulate this, it would be fantastic,” he said.
Earlier, in his presentation, Hoogendoorn encouraged more banks to work with fintech companies in Qatar, and cited a study highlighting several fintech trends that needed to be embraced in the country.
He said some of these trends also include Know Your Customer (KYC) digital signing, which will better facilitate the opening of bank accounts, sustainable apps for consumers, embedded insurance, AI, PropTech, open banking, and digital assets.
However, Hoogendoorn also warned that Qatar already has too many payment service providers, and only the ones with added services will survive the market.
“Anything related to sustainable and responsible financing, we will see more apps that allow users to invest, save, and do zakat more in a safe way. When it comes to insuretech, we have the Qatar Insurance Company (QIC), the biggest insurer in Mideast having just appointed new chief innovation officer. Clearly they’re ahead of the game and making sure that this whole insuretech becomes mainstream,” he added.
Speaking about digital assets, Hoogendoorn reiterated that cryptocurrencies are currently still not allowed in Qatar. However, he said that “crypto will become more mainstream in the US and Europe, with more banks such as JP Morgan using it. Eventually, more regulators will also accept it, and at a certain moment it will also have to be accepted in countries like Qatar as well,” he added.
Speaking further on top recommendations, he said the QFC, which currently has around 70 fintech companies on its platform, will continue to provide support to fintechs. He went on to reiterate the need for more Angel investors in the country, use of blockchain for investments, and spoke about the possibility for a digital SME bank in Qatar.
“We are very enthusiastic about the future and our partnerships. And one area we should also be leading is Islamic fintech,” he added.
