National Payment Systems Act, 2007 (Act No. 1 of 2007)

The National Payment Systems Act, 2007 (Act No. 1 of 2007), enacted on 12 April 2007, is the principal legislation governing payment systems in Zambia and the legal basis for the Bank of Zambia's regulation and oversight of the sector. The Act regulates payment system operations to ensure their safety, security, efficiency and dependability, and provides for the designation, regulation and oversight of payment systems and payment system businesses. It applies to operators of payment, clearing and settlement systems, to participants in those systems, and to providers of payment services, including non-bank electronic money issuers and mobile money operators. Core obligations include the requirement to be designated or authorised by the Bank of Zambia before operating a payment system or carrying on a payment system business, compliance with the conditions, standards and directives issued by the Bank, the safeguarding of customer funds, and adherence to oversight, risk-management and reporting requirements. The Act provides for the legal certainty of settlement, including settlement finality and the enforceability of netting in designated systems, to limit systemic risk, and confers on the Bank of Zambia powers to issue directives, to supervise and inspect participants, and to enforce compliance, including through penalties and the suspension or revocation of designations. As the umbrella statute, the Act is operationalised by a series of Bank of Zambia directives that give detailed effect to its provisions in fast-moving areas of fintech, including the National Payment Systems Directives on Electronic Money Issuance (most recently the 2023 directives, which superseded the 2018 version) and the directives on ATM, point-of-sale, internet and mobile payments. The Act remains in force and is the central reference instrument for fintech and digital-payment regulation in Zambia.

1. 1Provides for the designation, regulation and oversight of payment systems and payment system businesses by the Bank of Zambia
2. 2Requires designation or authorisation before operating a payment system or carrying on a payment system business
3. 3Empowers the Bank of Zambia to issue directives and standards and to require safeguarding of customer funds
4. 4Provides for settlement finality and enforceability of netting in designated systems
5. 5Confers supervision, inspection and enforcement powers, including penalties and revocation of designation
6. 6Basis for the BoZ directives on electronic money issuance and on ATM/POS/internet/mobile payments