The National Payment System Act, 2023

The National Payment System Act, 2023 is the principal statute governing payment systems in Eswatini and the legal basis for the Central Bank of Eswatini's (CBE) powers over the national payment system. The Act sets out the CBE's powers and the obligations of payment system providers, participants and any person operating within the payment value chain. It provides the framework for the licensing, designation, regulation and oversight of payment systems, payment system operators, payment service providers and issuers of electronic money, including mobile money service providers. The Act applies to all entities that provide, operate or participate in payment systems and payment services in Eswatini. Core obligations include the requirement to obtain a licence or authorisation from the CBE before providing payment or electronic money services, compliance with prudential, governance and operational conditions imposed by the Bank, the safeguarding and protection of customer funds (including trust-account arrangements), and adherence to oversight and reporting requirements. The Act empowers the CBE to designate systemically important payment systems, to issue regulations, directives, guidelines and practice notes giving detailed effect to the statute, and to supervise and enforce compliance, including through sanctions. It provides for settlement finality and the enforceability of netting in designated systems to contain systemic risk. The 2023 Act modernised and consolidated Eswatini's payment-system legal framework, replacing the earlier National Clearing and Settlement Systems arrangements and giving statutory footing to the CBE's oversight role, its fintech unit and its regulatory sandbox for live testing of innovative payment products. Pending the finalisation of detailed regulations on timelines, documentation and requirements, the CBE continues to rely on instruments such as the Practice Note for Mobile Money Service Providers and the NPS Minimum Standards for Electronic Payments to license and supervise providers. As the umbrella legislation, the Act is the central reference instrument for fintech and digital-payment regulation in Eswatini and remains in force.

1. 1Sets out the CBE's powers and the obligations of payment system providers, participants and value-chain actors
2. 2Requires a licence or authorisation from the CBE before providing payment system, payment service or electronic money services (including mobile money)
3. 3Requires safeguarding and protection of customer funds, including trust-account arrangements
4. 4Empowers the CBE to designate systemically important systems, issue regulations, directives, guidelines and practice notes, and supervise and enforce compliance
5. 5Provides for settlement finality and enforceability of netting in designated systems
6. 6Gives statutory footing to the CBE's payment-system oversight, fintech unit and regulatory sandbox