Saudi Arabia’s STC Pay gains digital banking licence

Saudi Telecom’s STC Pay business will be converted into a digital bank with paid-up capital of 2.5 billion riyals ($666.7 million) after Saudi Arabia’s cabinet approved licenses for two digital banks, it said on Wednesday.

The company will inject additional 802 million riyals to retain 85% of STC Pay’s share capital, with Western Union investing 750 million riyals for the remaining 15%.

A consortium led by Abdul Rahman bin Saad al-Rashed and Sons Company was also granted permission to establish a local digital bank with capital of 1.5 billion riyals.