SBP seeks suggestions about e-payment gateways

KARACHI: The State Bank of Pakistan has placed initial draft of a concept paper and regulations for establishment of electronic payment gateways in Pakistan on its website for public comments and feedback.

It may be mentioned here that a payment gateway is an e-commerce application service provider to authorize payments of e-businesses by acting as an intermediary between an acquiring institution and the issuing institution. An e-payment gateway will facilitate authorisation of local and cross border transactions in such a way that local transactions will be routed, processed and authorised domestically and only cross border transactions will be routed via international payment schemes operating in Pakistan such as VISA, MasterCard, etc. for authorization.

These documents besides the concept of e-payment gateway discuss the regulatory requisites and other relevant pre-conditions for entities to become eligible for applying as e-PG operator mandated to safely route, process, and authorize local and cross border financial transactions performed by customers using various Alternative Delivery Channels ( ADCs). The drafts of the concept paper and regulations on Electronic Payment Gateway have been posted at SBP website www.sbp.org.pk for feedback/ comments from the general public.