National Payment Systems Act, 2014 (Act No. 8 of 2014)

The National Payment Systems Act, 2014 (Act No. 8 of 2014) is the principal statute governing payment systems in Lesotho and the legal basis for the Central Bank of Lesotho's (CBL) regulation and oversight of payment systems and payment service providers operating in the country. The Act empowers the CBL to license and supervise payment service providers, to regulate payment system operators and the underlying infrastructure, to establish operational and technical standards for payment services, to ensure the reliability and efficiency of payment systems, and to protect consumers using electronic payment services. It applies to operators of payment, clearing and settlement systems, to participants in those systems, and to providers of payment and electronic-money services, including non-bank mobile money providers. Core obligations include the requirement to obtain authorisation or a licence from the CBL before establishing or operating a payment system or providing payment services, compliance with conditions and prudential, governance and operational standards set by the Bank, the safeguarding of customer funds, and adherence to oversight and reporting requirements. The Act provides for the legal certainty of settlement, including settlement finality and the enforceability of netting in recognised systems, to contain systemic risk, and confers on the CBL powers of supervision, inspection, direction and enforcement, including sanctions. As the enabling legislation, the Act is operationalised by subsidiary instruments, most notably the Issuers of Electronic Payment Instruments Regulations, 2017, which set out the detailed licensing regime for e-money and mobile money issuers, and by guidelines addressing mobile money and other electronic payment models. The Act remains in force and is the central reference instrument against which fintech and digital-payment activity in Lesotho is licensed and supervised.

1. 1Empowers the CBL to license and supervise payment service providers and to regulate payment system operators and infrastructure
2. 2Requires authorisation or a licence before establishing or operating a payment system or providing payment/e-money services
3. 3Authorises the CBL to set operational and technical standards and to protect consumers of electronic payment services
4. 4Provides for settlement finality and enforceability of netting in recognised systems
5. 5Confers supervision, inspection, direction and enforcement powers, including sanctions
6. 6Forms the basis for the Issuers of Electronic Payment Instruments Regulations, 2017 and CBL mobile money guidelines