Regulatory Alerts2024-07-24
Rules for Dealing with E-Commerce Payment Service and Support Providers
The Saudi Central Bank (SAMA) issued this circular to clarify that technical connectivity and support services for e-commerce payments are ancillary and currently exempt from direct licensing, provided they secure SAMA Payments' technical approvals and avoid merchant contracting, settlement, and fund deposit activities. The directive mandates that banks and licensed payment service providers may contract with these unlicensed support companies after verifying their technical approvals and compliance with third-party outsourcing rules, including Mada system requirements. Furthermore, financial institutions must exclusively engage licensed payment service companies for core services and promptly notify SAMA if unlicensed entities provide related payment services.