Electronic Money and Payment Services: Licensing Under the National Payment System Act 2018

The National Payment System Act 2018 (NPSA) establishes the regulatory framework for payment systems, clearing systems, and settlement systems in Mauritius. The Bank of Mauritius is designated as the authority for the regulation, oversight, and supervision of national payment systems under Section 3 of the NPSA.

Licensing Requirement

Section 9 of the NPSA provides that no person shall provide payment services without a licence granted by the Bank of Mauritius. A payment service provider includes entities providing money remittance, electronic money issuance, merchant acquisition, and other payment-related services. An application for a licence must be made in such form and manner as may be prescribed.

Electronic Money

Section 45 of the NPSA defines electronic money as monetary value representing a claim on the issuer which is stored on an electronic device or system, is issued on receipt of funds, and is accepted as a means of payment by persons other than the issuer. Electronic money issuers must comply with the licensing requirements and maintain adequate safeguards for the protection of customer funds.

Authorisation of Payment Systems

Section 8 of the NPSA provides that no person shall operate a payment system, clearing system, or settlement system in Mauritius without authorisation from the Bank of Mauritius. In granting authorisation, the Bank considers whether the applicant is a fit and proper person, whether the system will be operated in a safe and efficient manner, and whether the system will serve the public interest.

Enforcement Powers

Section 45 of the NPSA grants the Bank of Mauritius enforcement powers including the authority to issue corrective orders, suspend activities, or revoke authorisations and licences in cases of non-compliance, fraud, or threat to the stability of the payment system.

This article is for general information purposes only and does not constitute legal advice.