BoN Takes on Role of Licensing Payment Service Providers

11 October 2023 | Media Release
  The Bank of Namibia (the Bank) will now handle the licensing and regulation of payment service providers instead of sharing the responsibility with the Payments Association of Namibia (PAN). This is in line with the recently promulgated Payment System Management Act 14 of 2023 (the PSM Act). The rational for having a single regulator is to provide regulatory certainty, reduce the administrative load on payment service providers by eliminating the need to interact with two regulators, and bring the domestic national payment system in line with international best practices.

The Bank, in terms of section 10 of the PSM Act, is responsible for licensing, regulating, and overseeing payment service providers, which include electronic money issuers, payment instrument issuers, payment intermediation service providers, as well as payment facilitators and processors. To this effect, all queries related to applications for licensing and authorisation to offer payment services should be directed to the Bank of Namibia.

The Payments Association of Namibia will continue to exist and maintain its role as an advisory association and a collaborative platform for its members within the national payment system in terms of section 5 of the PSM Act. The Association will further, subject to the Bank of Namibia's approval, establish criteria for member participation in payment systems and forums, as well as make and administer technical rules concerning payment instructions and payment instruments.