Who may do what.
WHAT LICENCE CATEGORIES BROADLY COVER
Switching and processing Payment solution services Payment terminal services Mobile money operation Payment service banking Other specialised categories
WHY THE DISTINCTIONS MATTER
Each permits specific activities, and operating outside your category is a serious breach.
WHAT DETERMINES WHICH YOU NEED
Whether you hold customer funds Whether you move money between parties Whether you provide terminals Whether you issue instruments
WHAT HOLDING FUNDS TRIGGERS
The most demanding requirements, since customer money is at risk.
WHAT MOST PRODUCT BUILDERS ACTUALLY DO
Operate on a licensed provider's infrastructure rather than obtaining a licence.
WHY
Capital requirements, compliance obligations and time to obtain are substantial.
WHAT THAT ARRANGEMENT REQUIRES
A clear agreement on responsibilities Understanding of what you may and may not do Awareness that the provider's compliance obligations become your constraints
WHAT TO NEVER DO
Describe yourself as offering services you are not licensed for.
WHAT TO VERIFY BEFORE PLANNING
Current categories, capital requirements and permitted activities, directly with the regulator or counsel.
WHY
These are revised, and published summaries date quickly.
WHAT TO BUDGET FOR
Compliance as an ongoing operational cost, not a one-off.
