Fast Payments Directive No. 1 of 2024

1 Fast Payments Directive no:1 of 2024 DATE OF ISSUE: 25 JULY 2024

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1. Preliminary Short title and commencement 1.1. This Directive may be cited as the Fast Payments Directive no1 of 2024. 1.2. This Directive shall come into force on the 19th August 2024 Interpretation 1.3. In this Directive, terms whose definition is provided by the Act, shall have the meaning given to them under such definitions unless the context requires otherwise: “Act” means the National Payments System Act,2023 “Bank” means the Central Bank of Eswatini “Credit Transfer” means the series of transfers, beginning with the payer’s payment order, made for the purpose of making payment to the payee including any payment order issued by the payer’s bank or payment service provider, or an intermediary intended to carry out the payer’s payment order. ″Domestic Fast Payments“ means real-time payments of up to E50,000.00 “Electronic Money” means a monetary value represented by a claim on the issuer, which is:  stored on an electronic instrument or device;  issued upon receipt of funds in an amount not less in value than the monetary value received;  accepted as a means of payment by persons other than the issuer; and withdrawn in cash or any equivalent of cash; ″Eswatini Payment Switch Fast Payments Procedural Manual 2024″ means the fast payments procedural manual, which governs fast payment operations on the Eswatini Payments Switch. “Eswatini Payments Switch (EPS)″ means the shared interoperability retail payments infrastructure between banks and non-banks financial institutions and an interchange

3 switching services for; Instant payments (Instant Electronic Funds Transfers), ATM transactions/ POS transactions and Mobile banking transactions and secure sharing of financial data through open banking “Participant”- a duly licensed payment service provider that is certified under EPS Fast payment rules as eligible to exchange, clear, or settle through the payment Switch with other participants either directly or indirectly. “Payment Service Provider”-means a person or financial institution that is licensed under section 22 of the NPS Act, 2023 to provide a payment service. “Off-Us Transaction”- is the credit transfer of electronic money transaction that takes place between two different participants. 2. Application 2.1. This directive shall apply to all Payment Service Providers and Participants. 3. Objectives The objectives of this directive are to; 3.1 operationalize the Eswatini Payment Switch Fast Payments Procedural Manual, and in particular ensuring that all domestic Off-Us Transactions are routed through the Eswatini Payment Switch. 3.2 ensure compliance by Participants with network and operational requirements as set out in the EPS Fast Payments Procedural Manual. 3.3 ensure compliance by Participants with the general participation requirements prescribed in the EPS Fast Payments Procedural Manual. 3.4 ensure compliance by Participants with the risk management and security requirements set out in the EPS Fast Payments Procedural Manual. 4. Directive To ensure local processing of domestic Off-us transactions on the EPS, the Bank prescribes that;

4 4.1 With effect from 19th August 2024, all Participants and Payment Service Providers shall route outgoing and incoming domestic Off-Us Transactions with a monetary value of not more than E50,000.00 through the EPS. 4.2 All Participants and Payment Service Providers are expected to have fully complied with the network, operational and general participation requirements, as well as the procedural requirements outlined in the application form for joining or participating in the Eswatini Switch, which are prescribed in the EPS Fast Payments Procedural Manual on or before the 19th November 2024. 4.3 Where the Bank determines that a Participant or Payments Service Provider is not in compliance with this Directive, it may impose on the Participant or Payment Service Provider such remedial measures that it may consider in terms of applicable and relevant legislation or as the Bank deems fit. 5. Effective Date 5.1. This notice becomes effective from the 19th August 2024. 6. Conclusion This directive is not exhaustive and may be supplemented or amended from time to time as required by the Bank.

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The Governor Central Bank of Eswatini