Payment Service Provider License

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Rwanda Payment Service Provider License

Introduction

A Payment Service Provider License (PSP) is a body corporate that is authorized by the National Bank of Rwanda to provide payment services to customers and businesses under LAW No 061/2021 OF 14/10/2021 Governing the Payment System. The National Bank of Rwanda has the power to regulate, oversee and supervise the payment systems and payment services being operated in Rwanda.

Types of payment services in Rwanda:

  • Services enabling cash to be placed on or withdrawn from a payment account as well as all the operations required for operating a payment account.
  • Execution of payment transactions, including transfers of funds on a payment account with the user’s payment services provider or with another payment services provider, whether the funds are covered by a credit line for a payment service user:
    • Execution of direct debits, including one-off direct debits.
    • Execution of payment transactions through a payment card or a similar device.
    • Execution of credit transfers, including standing order
  • Issuing of payment instruments:
  • Acquiring of payment transactions either physically, online or through a payment aggregator
  • Money remittance.
  • Payment initiation services: All services facilitating the authorization and/or validation of an electronic fund transfer, a card payment or otherwise facilitating the execution of electronic transactions. They include but are not limited to management of gateways or payment terminals
  • Such other payment services as may be determined by the National Bank of Rwanda

Legal Requirements

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No		 Element Requirement(s)
1 Entity Requirements) The entity making the application is a Rwandese Domestic company
2 Director’s Requirements Legally speaking, a minimum of 2 directors are required for Limited Liability Company holding who must be independent of the shareholding. At least of the two directors one must be a resident
3 Shareholder requirements The Payment Intermediary will need at least 1 shareholder. Corporate shareholding is allowed
4 Compliance Officer A compliance officer shall be appointed at the senior management level and must have explicit and ultimate responsibility for anti-money laundering and the combating of the financing of terrorism compliance program
5 Rwandese Office A payment service provider must have a permanent place of business or a registered office in Rwanda before starting to carry on such services
6 Auditor An operator or a payment service provider must designate at least one external auditor accredited by the National Bank of Rwanda. The designated external auditor must appear on a list regularly drawn up by the accounting professional regulatory body. Only a body corporate is allowed to act as external auditors.
7 Insurance Evidence of professional indemnity insurance, or some other comparable guarantee against liability to ensure that the applicant can cover its liability. Have an insurance policy covering at least a risk of an amount of 100,000,000 FRW as security of funds held in vaults
8 Minimum Capital Requirements Shall have a minimum initial capital of not less than two hundred million Rwandan Francs (200,000,000 RWFs)
9 Register of customers A payment service provider shall, always, maintain a register containing identification details of all customers and the funds outstanding in their e-money accounts of which the details shall include the identity card number or the passport number.

Payment Service Provider License