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2020-10-05

Preparations in providing electronic payment methods for the grocery sector

The Saudi Arabian Monetary Authority requires all banks, financial institutions, and payment service providers to fully prepare for processing electronic payment requests from grocery and provisioning retailers by opening bank accounts, issuing e-wallets, and accepting POS or QR code transactions through all available channels. Providers must utilize the designated Merchant Category Code 5411, comply with relevant regulatory and operational rules, and internally circulate the directive to ensure staff readiness for incoming requests. This mandate operationalizes a national program obligation effective May 10, 2020, aimed at accelerating cash-to-digital transitions and mitigating pandemic-related transaction impacts.

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In the name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority (SAMA) Head Office

Banking Policy Department Ref. No.: 42009003 Attachments: 2 pages

Circular Date: 1442/02/18 (Hijri)

Dear Sir/Madam, Peace, mercy of Allah and His blessings be upon you.

Subject: Preparations for providing electronic payment methods for the grocery and provisioning sector.

Attached are the Authority's instructions communicated via email on April 30, 2020, regarding preparations for providing electronic payment methods for the grocery and provisioning sector, which take effect from the date of their communication to you via email.

For your information, Yours sincerely,

Yazeed bin Ahmed Al-Sheikh General Manager of Banking Supervision

Distribution Scope:

  • Banks and financial institutions operating in the Kingdom

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 4633000, Fax: 4662414

Suliman R. Aljabrin From: Banking Policy Department Sent: Thursday, April 30, 2020 10:41 AM Subject: Preparations for providing electronic payment methods for the grocery and provisioning sector.

Dear Sir/Madam, Peace, mercy of Allah and His blessings be upon you.

Based on the Authority's strategies for payment systems and the Financial Sector Development Program aimed at enhancing electronic payments and reducing cash transactions, and to enhance current efforts and initiatives to address the impacts of the coronavirus (COVID-19) outbreak, and in continuation of the National Program to Combat Commercial Concealment efforts by gradually obliging the retail sector to provide electronic payment methods.

The Program, in cooperation with the Authority, the Ministry of Municipal and Rural Affairs, and the Ministry of Commerce, has obligated all grocery stores and provisioning shops in the Kingdom to provide electronic payment methods starting from 17 Ramadan 1441 AH (corresponding to May 10, 2020 AD). With the aim of successfully activating this decision and ensuring full readiness to cope with the expected volume of requests, all banks, financial institutions, and payment service providers must comply with the following:

  • Readiness to respond to requests for opening bank accounts and e-wallets for merchants operating in the grocery and provisioning sector.
  • Readiness to receive requests for providing electronic payment methods authorized by the Authority (Point of Sale "POS" terminals, or Quick Response "QR" codes) and to respond to them through all various channels such as branches, the official website, unified number, etc., to facilitate this requirement for merchants in this sector, and to comply with the regulatory and operational rules for these services.
  • Compliance, when providing the payment method, with using the Merchant Category Code (MCC) designated for this activity, which is: 5411.
  • Internal circulation of this decision to bank and financial institution staff and payment service providers to ensure their adequate understanding when receiving requests and inquiries regarding this matter.

For your information, and to act accordingly. Yours sincerely,

1

Suliman bin Rashid Al-Jabrin Director of Banking Policy Department P.O. Box 2992, Riyadh 11169 Kingdom of Saudi Arabia Saudi Arabian Monetary Authority (SAMA) www.sama.gov.sa

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