Based on the powers granted to SAMA under its law issued by Royal Decree No. M/36 dated 11/04/1442H, the Banking Control Law issued by Royal Decree No. M/5 dated 22/02/1386H, and the Law of Payments and Payment Services issued by Royal Decree No. M/26 dated 22/03/1443H, and its Implementing Regulations issued on 24/11/1444H, and communicated through Circular No. (44093096) dated 16/12/1444H, and in reference to Paragraph 9 of Article 7 of the Implementing Regulations of Payments and Payment Services Law regarding services that are not considered related payment services, which states: "Services provided by technical service providers, including, for example, technical services," and referring to SAMA’s Circular No. (42080528) dated 18/11/1442H, regarding the Rules for Dealing with E-Commerce Payment Service and Support Providers.

Accordingly, SAMA emphasizes that the linkage and technical support services for e-commerce payment services are considered supporting services for payment services, which do not require a license from SAMA at this time. Companies engaged in these services must obtain all necessary technical permits from Saudi Payments, and their services must be limited to linkage and technical support only, without including the following aspects:

• Directly contracting with merchants, registering them, and carrying out matching procedures and verifying the validity of the merchant's data and information in order to fulfill KYC requirements and requirements related to AML/CFT and Counter-Fraud.
   
• Finalizing the financial settlement procedures and depositing funds into the merchant's bank account.
   

Accordingly, SAMA would like to emphasize the following:

1. Banks must comply with dealing only with licensed companies providing payment services, and to notify SAMA immediately if they discover that an unlicensed company is providing any related payment services.
    
2. Banks, and payment service providers may contract with companies practicing linkage and technical support services for e-commerce payments, after verifying that they have obtained all necessary technical licenses, and taking into account the Rules on Outsourcing and related instructions and controls, including the operational and technical requirements of the (MADA) system and the (MADA) Fee Guide.
    

For your information and action accordingly, noting that this circular supersedes Circular No. (42080528) dated 18/11/1442H, regarding the Rules for Dealing with E-Commerce Payment Service and Support Providers as mentioned above.