Licensing & Authorisation

The licensing and authorisation processes are central to maintaining a reputable national payment system. In accordance with Section 9 of the NPSA, any entity seeking to provide a payment service must apply for a licence. For the purposes of licensing, payment services refer to:

• The provision, operation and maintenance of payment accounts and electronic money accounts
• Deposit and withdrawal of funds in and from payment accounts and electronic money accounts
• Execution of payment transactions
• Acquisition of payment transactions
• Issuance of payment instruments
• Issuance of electronic money and electronic money instruments
• Provision of payment initiation services
• Provision of account aggregation services
• Provision of bill aggregation or payment aggregation services, where such services include any of the payment services above
• Other classifications as the Bank considers appropriate

The Bank will only entertain applications for a licence under the NPSA using the official licensing application form and from companies with a physical presence in Barbados.  Prospective applicants must observe the the requirements to apply for a licence and prior to submitting an application, are encouraged to meet with the Bank to discuss their proposed operations. This aids in an efficient process, informed by a clear understanding by the Bank and the prospective applicant of the regulatory requirements and the business case. The Bank strongly recommends that prospective applicants utilise a suitable service provider of their choice, to assist with the application process.  

A completed application form must be submitted to paymentsoversight@centralbank.org.bb along with supporting documentation and evidence that the application fee of BBD2,000 has been paid to the Bank as per the Framework for Licensing & Authorising Payment Service Providers. Upon receipt of the application together with evidence that the application was paid, the Bank will undertake an initial review to ensure that all relevant documents have been submitted. The circumstances of each application will determine whether the Bank must request additional information to complete the process. Timely submission of additional information is key to rendering a decision on the application within the prescribed timeframe.

The application review process involves scrutiny and analysis of all documentation submitted, including a “fit and proper” test which assesses among other things, the integrity, reputation, competence and capability of shareholders, directors, executive officers and other key individuals. The requirements for licensing and authorisation are set out in the Framework for Licensing & Authorising Payment Service Providers. It sets out the Bank’s criteria for the licensing of Payment Institutions and the authorisation of entities licensed under the Financial Institutions Act, Cap. 324A (the FIA) and Credit Unions registered under the Co-operative Societies Act, Cap. 378A (the CSA), collectively known as Payment Service Providers and the customary documentation to be provided. For the avoidance of doubt, any entity licensed under the NPSA is referred to as a Payment Institution, while those eligible for authorisation, i.e. commercial banks and credit unions, will be referred to as Authorised Payment Service Providers.