In this Law, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise:
Law: Law of Payments and Payment Services.
SAMA: The Saudi Central Bank.
Board: SAMA’s Board of Directors.
Regulations: The implementing regulations and any other regulations issued by SAMA in accordance with this Law.
Person: Any natural or legal person.
Payment Systems: A set of instruments, procedures, and rules for processing and settling payment orders and clearing transactions related thereto within the Kingdom or abroad.
Payment Services: Services related to the execution, transfer, or processing of payment transactions and payment instruments; management of transfer transactions and e-money payments through payment platforms or instruments; payment wallets in the form of electronic accounts or records; provision of payment information and account services; and other related services specified in the regulations.
Payment Order: An order or set of instructions made by a member with regard to a money transfer request, as a cash claim in the form of a book entry, to the order of a beneficiary who is a member of any payment system, to be deposited in the beneficiary’s account; this shall include orders or instructions relating to the transfer or withdrawal of amounts to or from an account.
Member: Any person who has a payment account through which he can make payment orders or who is a beneficiary thereof.
Client: Any person who receives payment services or uses payment systems.
Consumer: The ultimate beneficiary of a payment service.
Funds: Banknotes or coins of any currency that are physically or electronically kept, and of any other type of currency specified in the regulations.
Systemically Important Payment System (SIPS): Any payment system classified by SAMA as important pursuant to certain criteria set thereby based on the volume, value, and nature of transactions carried out through such system and its connection with settlement and clearing systems within the Kingdom and abroad.
Guarantee: Cash, or any asset that may be converted into cash, that is provided pursuant to a lien or any other similar agreement to guarantee the rights and liabilities that may arise for the benefit of members under SIPS.
Clearing Arrangements: Arrangements made between transacting parties to calculate net liabilities, in accordance with the relevant rules of payment systems.
Default Management Arrangements: Clearing arrangements or any other arrangements relating to settlement of financial positions resulting from transactions associated with payment systems and services for the purpose of reducing or mitigating risks that may arise in the event that a payment system member, or payment service provider, is actually or potentially incapable of paying his due liabilities, including enforcement or transfer of guarantees.
Settlement Finality: The point at which a payment order is deemed to be duly completed in a payment system, in accordance with the rules of said system, and is deemed binding and enforceable and may not be reversed, revoked, or modified by its issuing member or his agent, in accordance with SIPS rules.
Final Payment Order: A payment order that is subject to a settlement finality, in accordance with SIPS rules.

This Law aims to:
1. enhance the integrity and efficiency of the infrastructures of payment systems and services in the Kingdom;
2. enhance the protection of users of payment systems and services; and
3. promote innovation and competition in payment system operations and services in the Kingdom.

This Law shall apply to payment systems and their operators and to payment services and their providers.

A person may not operate a payment system or provide payment services in the Kingdom unless licensed by SAMA.

SAMA shall, for the application of this Law, determine the cases and criteria according to which a person residing abroad is deemed a payment system operator or payment service provider within the Kingdom.

Final payment orders, settlement transactions, clearing arrangements, and default management and guarantee arrangements shall be deemed binding and enforceable and may not be modified, reversed, or revoked.

SAMA shall regulate, supervise, and oversee payment systems and their operators, as well as payment services and their providers, in accordance with the provisions of this Law and its regulations. It may in particular undertake the following:
1. Determining the terms and conditions for issuing licenses, and the legal structure of payment system operators and payment service providers.
2. Determining the capital and solvency requirements for payment system operators and payment service providers.
3. Issuing, renewing, and revoking licenses of payment systems and their operators as well as payment services and their providers.
4. Approving and regulating the products and services provided by payment system operators and payment service providers.
5. Setting outsourcing rules for the operation of payment systems or provision of payment services.
6. Setting classifications and requirements for payment systems based on their importance, including classifying any payment system as a SIPS.
7. Setting frameworks and rules for interlinked payment systems within the Kingdom and abroad.
8. Setting procedures and measures necessary for protecting the funds and data of clients, consumers, and members in relation to payment systems and services, and taking necessary action to protect their rights.
9. Setting the plans and measures that persons subject to this Law must follow to restore and improve their financial positions in the event of any substantial disruption thereto, or to enable said persons to terminate their business activities in a timely and orderly manner, including liquidation, subject to applicable laws.
10. Determining license issuance and renewal fees.
11. Setting governance and internal control guidelines for payment system operators and payment service providers.
12. Setting rules that payment system operators must observe when issuing rules for their transactions and membership.
13. Setting adequacy and competency standards for the employees of payment system operators and payment service providers, including senior officers.

Payment system operators and payment service providers shall, subject to the regulations, observe the following:
1. Providing access to systems and services based on appropriate and fair commercial principles.
2. Segregating funds transferred therethrough for the benefit of members, clients, and consumers from their own funds.
3. Protecting the confidentiality of information and data of members, clients, and consumers.

An operator of a payment system that is classified as a SIPS shall, from the date of being notified of such classification, operate in accordance with SIPS-related rules established thereby, subject to the regulations.