The following phrases and terms - wherever they appear in these rules - shall have the meanings set forth below unless the context requires otherwise:

The Rules: refer to the regulatory rules for payment service providers.

Account Information Service: is an electronic service that integrates and provides payment account data held by one or more payment service providers with the payment accounts owned by the payment service user at one or more payment service providers. This includes providing information in any of the following forms:

• A. In its original form or after processing.

• B. Within an electronic tool through an electronic information network that enables the payment service user to modify and present account information in various ways.

• C. For the benefit of the payment service user who owns linked payment accounts, or for the benefit of the payment service user and any other person according to the user's consent and instructions.

Account Information Service Provider: is the payment service provider that offers the account information service.

Accounting Records: are the documents and essential information stored electronically or by other means, used to prepare, verify, and audit the financial statements of the payment service provider, including but not limited to:

• A. Checks.

• B. Records of electronic transfers.

• C. Invoices.

• D. Contracts.

• E. General and subsidiary ledgers and journal entries, and other adjustments to the financial statements that are not reflected in journal entries.

• F. Schedules in both paper and electronic copies that support cost allocations, accounts, reconciliations, and disclosures.

Payment Processing Hosting: is a payment service provided by a payment service provider contracted with the payee; to host, accept, and process payment transactions, resulting in the transfer of funds by the payment service provider to the payee.

Agent: is the person who acts on behalf of the payment service provider to provide payment services.

Alternative Delivery Channels: are physical, electronic, or digital services for creating payment transactions, withdrawing cash, or accessing the payment account of the payment service user.

Applicant: is the person who intends to or has applied for a license to provide payment services in accordance with Article 6.

Authentication: is a procedure that allows the payment service provider to verify the identity of the payment service user or the validity of their use of a specified payment tool. The term "authenticated" is interpreted accordingly.

The Institution: means the Saudi Arabian Monetary Authority.

Average Monthly Value of Payment Transactions:

• A. If at least 12 calendar months have passed since the licensing of the payment service provider; the average monthly value of payment transactions is calculated during the previous 12 calendar months prior to the date of calculating the total amounts of payment transactions executed by the payment service provider, including transactions executed by its agents.

• B. If less than 12 calendar months have passed since the licensing of the payment service provider or the applicant, the average monthly value of payment transactions is calculated according to what is stated in 6-2 (b) 6-4 (b).

• In all cases, the creation or redemption of electronic cash by the payment service provider is excluded.

Beneficial Owner: is the natural or legal person, according to the following cases:

• A. The person who directly or indirectly owns 10% or more of the capital or voting rights in the payment service provider or the applicant, including acting in concert or coordination with another person.

• B. The person who is a party to an arrangement that allows them to influence the management of the payment service provider or the applicant.

Cash Withdrawal Transaction: is the process of redeeming or withdrawing electronic cash at its nominal value in accordance with Article 15-9.

Restricted Service Account: is a monetary value stored via a payment tool, which cannot be redeemed for cash or through any other account, which:

• A. Is issued by a single issuer.

• B. Is used only to obtain goods or services within a limited network of service providers, as follows:

  • 1. They have direct commercial agreements with the issuer.

  • 2. They are considered part of a group of companies or a subsidiary of the same trade name or brand.

Complaint: is a verbal or written expression or a claim raised by the payment service provider indicating the dissatisfaction of a person with the service provided or the failure to provide the service according to the stipulated terms and conditions.

Consent: is the authorization from the authenticated payer for the registered payment transaction in accordance with Article 15-3 (b).

Creditor Transfer: is the process of depositing funds in favor of the payment account of the payee following a transaction or series of payment transactions; executed through the payer's payment account with their payment service provider, based on the payer's instructions and consent.

Customer Data: is any information related to a customer of the payment service provider, including personally identifiable information and financial data.

Direct Debit: is the process of debiting from the payer's payment account with their consent to the payee based on a payment transaction initiated by the payee and executed through the payer's or payee's payment service provider.

Continuous Capital: for the purposes of these rules, means the ongoing maintenance of capital in a permanent manner as set out in Article 7-3.

Locally Related Person: is a Saudi or foreign natural person residing in the Kingdom or a legal person established in the Kingdom, and is related to the payment service provider or the applicant in one of the following ways:

• A. Being the parent company of the payment service provider or the applicant.

• B. Being a subsidiary of the payment service provider or the applicant.

• C. Being the parent company of the subsidiary of the payment service provider or the applicant.

• D. Being another subsidiary of the parent company of the payment service provider or the applicant.

• E. Owning or controlling, directly or indirectly, 20% or more of the voting rights or capital of the payment service provider or the applicant.

• F. Owning 20% or more of the voting rights or capital controlled by the payment service provider or the applicant.

• G. The person to whom the payment service provider or the applicant is accustomed to adhering to their directions, formally or informally.

Foreign Related Person: is a foreign natural person residing outside the Kingdom or a legal person established outside the Kingdom, and is related to the payment service provider in one of the aforementioned ways.

Electronic Money (E-Wallets): is a monetary value represented by a claim on the issuer, provided that it is:

• A. Stored electronically or magnetically.

• B. Issued upon receipt of funds.

• C. Used for the purpose of conducting payment transactions.

• D. Accepted as a payment tool by persons other than the issuer.

Electronic Money Company (E-Wallets): is a licensed payment service provider authorized to issue electronic money.

Qualified Entity means:

• (A) the entities licensed or wishing to obtain a license from the institution as a large payment company or a large electronic money company or a small electronic money company and officially registered in the Kingdom as a joint stock company.

• (B) the entities licensed or wishing to obtain a license from the institution as a small payment company and officially registered in the Kingdom as a joint stock company or a limited liability company or according to any other requirements set by the institution.

Requirements for Appointments to Leadership Positions: are the requirements for appointments to leadership positions in financial institutions supervised by the Saudi Arabian Monetary Authority.

Framework Contract: is a contract between the parties of payment services aimed at managing the execution of a series of individual and consecutive payment transactions.

Administrative Structure is:

• A. The administrative structure of a large payment service provider consists of a board of directors, including executive members, the CEO, the CFO, partners, and/or individuals holding parallel administrative positions.

• B. The administrative structure of a small payment service provider consists of managers and individuals responsible for administrative tasks.

Bankruptcy: is the initiation of any bankruptcy proceedings, liquidation, or any other procedures referred to in the Bankruptcy Law in the Kingdom or any similar law in any other country.

Issuance of Payment Instruments: is the payment service provided by the payment service provider contracted with the payer, for one of the following purposes:

• A. To provide a payment instrument to enable the payer to create payment orders.

• B. To process the payer's payment transactions.

Supervisory Functions: include compliance, risk management, internal audit, and other supervisory tasks.

The Kingdom: is the Kingdom of Saudi Arabia.

Licensed Bank: is the bank licensed by the institution and engaged in any banking business in accordance with the Banking Control Law.

Limited Network Payment Transactions: are payment transactions made to or from a restricted service account or a limited service account.

Limited Network Service: is the payment services provided in relation to the restricted service account and the limited service account.

Related Person: includes persons related locally or internationally.

Major Payment Service Provider (Major PSP): are large payment companies or large electronic money companies.

Micro Payment Service Provider (Micro PSP): are small payment companies or small electronic money companies.

Transfers: are the service of transferring money or any representation of monetary value within the Kingdom or between the Kingdom and any external entity, without creating any payment accounts in the name of the payer or the payee, where:

• A. Receiving money from the payer for the sole purpose of transferring an equivalent amount to the payee or to another payment service provider acting on behalf of the payee.

• B. Receiving money on behalf of the payee and making it available to them.

Official Identification Number: is represented by the passport number, residence number, or identification card number.

Payee: is the person who benefits from the funds including cash, coins, and money held in banks and represented electronically and electronic money in relation to the payment transaction.

Payer is:

• A. The person who owns a payment account and initiates or consents to the creation of payment orders from that account.

• B. The person who issues payment orders without having a payment account.

Payment Account: is an account held in the name of one or more users of payment services and used to execute payment transactions.

Payment Account Service Provider: is the service provider that provides and maintains the payment account for the benefit of the payment service user, including the licensed bank that provides and maintains that account.

Payment Creation Service: is a service provided through electronic channels to create payment orders at the request of the payment service user for the benefit of the payment account with another payment service provider, based on the consent provided by the payment service user.

Payment Institution: is a payment service provider that offers one or more payment services excluding the issuance of electronic money.

Payment Tool: is any tool or set of procedures designated and agreed upon between the payment service user and the payment service provider, used by the payment service user to create payment orders.

Payment Orders: are instructions from the payment service user as the payer or payee to the payment service provider requesting the execution of a payment transaction.

Payment Services: are the conduct of any of the activities specified in Article 5-1, excluding any of the activities specified in Article 5-2.

Payment Service Provider: is any qualified entity licensed by the institution to provide one or more payment services in the Kingdom in accordance with these rules.

Payment Service User: is any person using payment services as a payer or payee or both.

Payment Transaction: is the procedure initiated by the payer or payee or their representative to deposit, transfer, or withdraw funds including cash, coins, and money held in banks and represented electronically and electronic money.

Personal Security Features: are features provided by the payment service provider to the payment service user for authentication purposes.

Specified Service Account: is the monetary value stored on a payment tool, according to the following:

• (A) Cannot be redeemed for cash or to any other account.

• (B) Can only be used to obtain:

  • (1) Goods or services within a clearly defined area.

  • (2) Goods or services within a limited network of service providers who have direct commercial agreements with the issuer.

  • (3) A limited range of goods or services.

Protected Customer Funds: are the funds received from a customer by the payment service provider, which are held for that customer to execute payment transactions or to create electronic money, excluding any funds represented by foreign exchange margins, fees, or commissions due to the payment service provider.

Riyal: is the Saudi Riyal.

Senior Management: are the individuals responsible for the daily management of the entity, overseeing or controlling it, including the CEO, and any person reporting directly to them and the direct representatives of such individuals.

One-Time Payment Contract: is a contract for a one-time executed payment transaction: which is not conducted under the framework contract.

Standing Order: is a payment order given by the payer to the payment account service provider to pay a fixed amount at regular intervals to the designated payee.

Total Average Outstanding Electronic Money: is the arithmetic average of the total amounts of financial obligations related to electronic money issued by the electronic money company at the end of each calendar day during the last 12 calendar months.

Total Outstanding Electronic Money: is the total value of electronic money issued by the electronic money company from time to time, calculated on the first day of each calendar month and used for that month.

A. The following meanings are intended when referred to in these rules, unless the context requires otherwise:

• (1) When referring to any provisions of laws, regulations, requirements, or rules - including these rules - it refers to the provisions as amended, replaced, or supplemented.

• (2) Person: Includes both natural and legal persons.

• (3) The obligation to provide notice or report in writing includes submission in paper or electronic form.

• (4) Day: Means the calendar day, unless stated otherwise, in accordance with Article (1-2) (b).

• (5) Calendar year: Refers to the Gregorian year, and reference to the calendar month refers to the month according to the Gregorian calendar.

• (6) Masculine forms: Include the feminine form equally.

• (7) The word "include" or "including" does not indicate limitation and is interpreted to mean "include, for example, but not limited to."

B. If the obligation to comply with any requirement falls on a calendar day that coincides with an official weekend or public holiday in the Kingdom, it is deemed obligatory on the next calendar day, which is a working day in the Kingdom.

C. The titles of these rules do not affect their interpretations.

The institution shall, under these rules, organize the payments sector in accordance with the following objectives:

• (a) Contributing to the maintenance of the safety and stability of the financial sector.

• (b) Enhancing the safety and efficiency of the infrastructure of payment systems and payment services in the Kingdom.

• (c) Protecting users of payment services.

• (d) Encouraging fair and effective competition in the payments sector.

• (e) Promoting innovation in the Kingdom.

The institution shall assume the following powers and responsibilities:

• A. Licensing entities to provide one or more payment services in accordance with these applicable rules, regulations, and guidelines.

• B. Issuing, updating, and amending the regulations, rules, and instructions related to the provisions concerning payment services and the payment sector.

• C. Supervising the compliance of payment service providers with the provisions of these rules, regulations, and guidelines issued by the institution.

• D. Ensuring that licensed payment service providers and their senior management adhere to the principles of governance in financial institutions.

• E. Implementing executive or corrective procedures regarding violations of the provisions of these relevant rules, regulations, and guidelines.

• F. Addressing complaints submitted by users of payment services regarding payment services in accordance with Article 11-7.

• G. Supervising the provision, operation, and use of alternative delivery channels, and ensuring access to payment accounts in accordance with Article 16 and other applicable regulations and guidelines.

• H. Maintaining a public register of payment service providers in accordance with Article 6-13.

• I. Suspending or revoking the licenses of payment service providers in accordance with the institution's powers.

The institution shall exercise the powers referred to in these regulations, based on the powers granted to it under the Institution's System, the Banking Control System, and the Anti-Money Laundering System, in addition to the powers granted to the institution in accordance with the powers conferred upon it by Council of Ministers Resolution No. 59 dated 28/3/1420 AH, and Council of Ministers Resolution No. 226 dated 2/5/1440 AH, without prejudice to the powers of the institution under other laws and regulations.

The institution may amend, update, or add any provisions to these rules as it deems appropriate.

(a) The provisions of these rules apply to any person who provides one or more payment services in the Kingdom in accordance with the provisions set forth in Article 3 (b).

(b) A person is considered to be providing payment services in the Kingdom under the following circumstances: 

• (1) Providing one or more payment services from a company in the Kingdom.

• (2) Engaging in payment services in the Kingdom. 

• (3) Inviting or encouraging any person present in the Kingdom to enter into an agreement related to one or more payment services. 

• (4) Marketing or promoting one or more payment services in the Kingdom. 

• (5) Appointing a payment service provider as an agent authorized to provide payment services on its behalf in the Kingdom, as follows:

  • (a) Assigning it to provide payment services in the Kingdom on behalf of the payment service provider.

  • (b) Acting in accordance with the instructions or guidelines of the payment service provider. 

  • (c) The agent performing any of the following: 

    • (1) Providing payment services on behalf of the service provider without obtaining licenses that qualify it to provide payment services.

    •  (2) Inviting or encouraging any person in the Kingdom to enter into an agreement related to payment services or offering it to them.

(A) No person is allowed to engage in payment services unless that person is:

• (1) A payment service provider.

• (2) A bank licensed under Article 4 (B).

(B) A licensed bank wishing to engage in payment services must do the following:

• (1) Submit a no-objection request to the Authority to engage in payment services.

• (2) Comply with the following:

  • (A) The provisions of these rules - except for the requirement to obtain a license as a payment service provider - where references to a payment service provider in these rules shall refer to the licensed bank.

  • (B) Other relevant regulations and rules issued by the Authority that apply to payment service providers.

(C) If a bank that has obtained the Authority's no-objection to engage in payment services under Article 4 paragraph (B)-(1) wishes to engage in other activities unrelated to payment services, it may be required to establish an independent legal entity in accordance with Article 6, if continuing to engage in such activities results in a breach or potential breach of financial soundness or affects the effectiveness of the Authority's supervisory role.

(D) A licensed bank that engages in payment services prior to the effective date of these rules is exempt from obtaining the Authority's no-objection under Article 4 (B) (1), but the bank must, upon the Authority's request, provide proof of having obtained its prior no-objection or license granted to it previously.

(E) A payment service provider wishing to change the payment services it offers must obtain prior approval from the Authority in accordance with Article 176 (C).

(F) A person is considered in violation of these rules if they violate the provisions of Article (4) (A) or any other articles contained in these rules, and is subject to corrective actions or penalties stipulated in Article 18 paragraph 4, or as determined by the Authority according to the powers granted to it.