In order to create an enabling regulatory environment and bring systemic harmony, introduce standardization and setting benchmarks, SBP issued Rules for Payment System Operators (PSOs) and Payment Service Providers (PSPs). The purpose of PSOs/ PSPs is to provide an electronic platform for clearing, processing, routing and switching of electronic transactions. It can make agreements with Banks, MFBs, other PSOs and PSPs, Merchants, e-commerce service providers and any other company for the provision of services mandated to the PSO and PSP under the rules.

PSOs/PSPs are important components of Financial Market Infrastructure (FMI) and they are defined in the Rules as “Authorized Party that is a company registered under Companies Ordinance 1984 and is engaged in operating and/or providing Payment Systems related services like electronic payment gateway, payment scheme, clearing house, ATM Switch, POS Gateway, E-Commerce Gateway etc. acting as an intermediary for multilateral routing, switching and processing of payment transactions”.

PSOs/PSPs authorization will be granted in three stages i.e. (i) In –Principle approval (ii) pilot Operation approval and (iii) final stage approval. PSOs/PSPs are required to maintain capital of  PKR 200 million (Rupees Two Hundred Million Only) or any other amount as may be prescribed by SBP from time to time capital and for  each  additional line of business they an additional amount of  25% of the required capital would be maintained. Further, PSOs/PSPs will not act as custodian of consumer’s money or perform any banking function(s) as defined in BCO, 1962 

So far 1Link  and NIFT  has been authorized under the said Rules for PSOs and PSPs. Moreover, 1Link has also been allowed to launch Country first Domestic Payments Scheme “PayPak.

List of PSOs/PSPs