KUWAIT CITY, Oct 23: Kuwait's central bank (CBK) will be testing a new "buy now, pay later" product within its regulator sandbox framework ahead of its launch in the local market, it said on Sunday, hailing the initiative as part of the bank's innovative models.

The new product represents a CBK effort to" support innovative Fintech based business models," to deliver value-added services to users in particular, and the local market in general, according to a bank statement.

On the idea behind the new product, the statement clarified that it allows customers to purchase from the participating online retailers and pay online in a "flexible and deferred manner," while it gives the merchant opportunity to provide products and services to customers.

On the role of the regulatory sandbox framework, the statement said it aims to "provide a safe environment to assess, evaluate and enhance Fintech products," which will be instrumental in encouraging further innovative practices. CBK will continue its role as a catalyst and will deploy the latest technology to "contribute to the achievement of national development plans, the statement underlined. (KUNA)