STC Bank has become one of the first licensed digital bank in Saudi Arabia to roll out a private beta. The firm, which received its digital banking license in 2021 from the Saudi Central Bank (SAMA), along with two other players, including D360 and Vision Bank, announced the launch of a private beta earlier this month.
The bank which was formed with a capital of $667 million initially started as a mobile wallet; STC Pay; which allows users to pay bills, send money to other wallet users, and transfer money internationally through a partnership with Western Union.
STC Pay was started by STC, the leading local telecom company, in 2018, as an independent firm owned by it. In 2020, Western Union invested $200 million in it for a 15 percent stake in the company after the firm received an electronic wallet company and a payment service provider.
The private beta of STC Bank is being rolled out to a limited number of select customers to help company prepare for the commercial launch later this year. The customers who will become a part of the private beta will be able to upgrade their STC Pay accounts to STC Bank accounts and access additional banking services. They will also receive an International Bank Account Number (IBAN).
STC Pay claims to be the largest mobile wallet in the region, serving over 12 million customers. Its revenues in 2023 were $283 million (SAR 1.06 billion), growing just over 2 percent year-over-year. However, transactions and card spending on the wallet witnessed over 50 percent growth in 2023.
It is not immediately clear how many of STC Pay’s users will be offered access to STC Bank during this trial phase.
