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Financial Institutions

Facilitating Payment Flows Between Payers and Payees

The Payment Intermediary Service licence authorises the processing and transmission of payment transactions, the foundational licence for payment platforms, mobile money operators, and cross-border payment services operating from Mauritius.

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Overview

What is a Payment Intermediary Service Licence?

Under the Payment Systems Act 2003 and related FSC regulations, a Payment Intermediary Service (PIS) licensee may facilitate the processing and transmission of payment transactions between payers and payees. This licence is the relevant authorisation for digital payment platforms, mobile money systems, cross-border remittance services, and payment gateway operators.

Mauritius's growing fintech ecosystem, combined with its proximity to African markets experiencing rapid mobile money adoption, makes it an attractive base for payment intermediaries serving the continent. The FSC applies proportionate AML/CFT and operational requirements calibrated to the risks of payment intermediation, providing a credible regulatory framework without the disproportionate burdens of more restrictive jurisdictions.

Aurevya advises PIS applicants from initial payment model assessment through FSC application, technology review, AML/CFT programme design, and operational launch, with practical experience of both the regulatory requirements and the commercial dynamics of payment intermediation in African and Indian Ocean markets.

FSC
Licensed
Financial Services Commission authorisation under the Payment Systems Act, providing internationally recognised regulatory standing for digital payment platforms and cross-border remittance services.
Cross-Border
Payments
The PIS licence is particularly well-suited to cross-border payment services, including international remittances, B2B payment platforms, and corridor-specific payment operators serving African and Indian Ocean markets.
African
Market Access
Mauritius's geographic positioning and regulatory reputation make it an ideal base for payment platforms targeting the African market, where mobile money adoption is driving rapid growth in digital payment infrastructure.

Scope of Authority

Key Features

Payment Processing
Authorised to process payment transactions, receiving payment instructions from payers, transmitting payment orders to payees, and managing the settlement process, under direct FSC oversight and in compliance with the Payment Systems Act framework.
Cross-Border Remittances
The PIS licence covers cross-border remittance services, facilitating the transfer of funds across international borders for individuals and businesses, a service in high demand in the African and Indian Ocean corridor markets that Mauritius is positioned to serve.
Mobile Money Compatible
The PIS framework accommodates mobile money-adjacent payment services, enabling Mauritius-based platforms to connect with and complement the mobile money ecosystems prevalent across East and Southern Africa, providing the regulated intermediary layer between mobile wallets and payment networks.
Digital Payments
Authorised to operate digital payment platforms, including online payment gateways, e-commerce payment solutions, and B2B digital payment systems, providing merchants, platforms, and businesses with the regulated infrastructure to accept and transmit digital payments.
AML/CFT Framework
The FSC applies AML/CFT requirements calibrated to the risks of payment intermediation, including customer due diligence for payers and payees, transaction monitoring for unusual payment patterns, and suspicious transaction reporting, ensuring the PIS licensee operates to international financial crime prevention standards.
FSC Oversight
Full regulatory oversight under the Payment Systems Act, including technology platform review, ongoing operational supervision, and annual reporting obligations, providing payment platform clients and business partners with confidence in the regulatory standing of the Mauritius payment intermediary.

Process

How It Works

01
Payment Model Assessment
We assess the proposed payment service model, the payment flows to be facilitated, the payer and payee segments, geographies served, technology architecture, and settlement mechanisms, confirming the PIS licence as the appropriate authorisation and scoping the application requirements.
02
Corporate Structure
Establishment of the Mauritius corporate structure, including the Global Business Company (GBC) or other entity form appropriate for the payment business, with the governance, ownership structure, and key personnel required for the FSC application.
03
FSC PIS Application
Preparation and submission of the complete PIS application, business plan, payment model description, technology overview, key personnel fit-and-proper submissions, financial projections, and AML/CFT programme, ensuring a complete and professionally presented application to the FSC.
04
Technology Review
The FSC reviews the payment platform technology, payment processing architecture, security controls, fraud prevention systems, and business continuity arrangements. We prepare the technology documentation for FSC review and identify any enhancements required before submission.
05
AML/CFT Implementation
Design and implementation of an AML/CFT programme tailored to payment intermediation risks, customer due diligence procedures for payers and payees, transaction monitoring systems, fraud detection, suspicious transaction reporting, and compliance officer appointment and training.
06
Licence Grant
Active management of the FSC review process through to licence grant, followed by operational launch coordination, final platform configuration, banking and settlement arrangements, and client onboarding procedures, ensuring the PIS licensee is ready to begin processing payment transactions from day one.

Practical Considerations

Requirements & Timeline

Regulatory Requirements

  • Minimum capital, fully paid up and maintained at all times
  • Payment platform technology assessment, processing architecture and security
  • AML/CFT programme aligned with international payment system standards
  • Fraud prevention systems, transaction monitoring and fraud detection controls
  • Client fund segregation, payment funds held separately from licensee's own assets
  • FSC reporting, regular transaction reports and annual compliance returns

Indicative Timeline

  • Corporate Setup: 2–3 weeks from completion of KYC and structure documentation
  • Application Preparation: 4–8 weeks, technology documentation and AML/CFT programme are typically the most time-intensive preparation elements
  • FSC Review: 10–16 weeks from submission, the payment platform technology review is a core element of the FSC assessment
  • Operational Launch: 3–5 weeks post-licence for final platform configuration, banking arrangements, and client onboarding setup

Common Questions

Frequently Asked Questions

The PIS licence covers the processing and transmission of payment transactions between payers and payees, including digital payment processing, cross-border remittances, mobile payment facilitation, payment gateway services, and B2B payment platform operations. The licence does not cover banking activities (deposit-taking and lending) or investment services, it is specifically focused on the intermediation of payment flows. The specific payment activities to be conducted must be described in the business plan submitted to the FSC as part of the licence application, and the scope of the licence issued will reflect the approved activities.
A PIS operator may hold client funds in transit as part of the payment processing function, receiving funds from payers before transmitting them to payees. These funds must be held in segregated accounts, separate from the licensee's own operating funds, and must be transmitted to payees within the timeframes specified in the PIS framework. A PIS operator is not a bank and may not hold client funds on a deposit basis or pay interest on client balances. The client fund segregation requirement is a core operational requirement of the PIS licence, and the FSC monitors compliance with segregation obligations as part of its ongoing supervision.
PIS licensees are subject to comprehensive AML/CFT requirements under the Financial Intelligence and Anti-Money Laundering Act and the FSC's AML/CFT guidelines for payment system operators. Key requirements include: customer due diligence for payers and payees (the level of which is calibrated to the risk profile of the transaction); transaction monitoring to identify unusual payment patterns that may indicate money laundering or fraud; sanctions screening against relevant sanctions lists; suspicious transaction reporting to the Financial Intelligence Unit; and an AML/CFT compliance officer. Aurevya designs PIS-specific AML/CFT programmes that are both FSC-compliant and operationally efficient for high-volume payment platforms.
The regulatory requirements for mobile money platforms in Mauritius depend on the specific services provided. A platform that facilitates the transmission of mobile payments, processing payment orders between mobile wallet users, would typically require a PIS licence. A platform that also holds mobile wallet balances for users over time (effectively providing a stored value facility) may require additional authorisation beyond the PIS licence. Aurevya advises on the correct regulatory classification for mobile money business models, the specific services to be offered must be analysed carefully to identify all applicable regulatory requirements before proceeding with applications.
From initial engagement, Aurevya typically requires 4–8 weeks to prepare a complete PIS application, the primary time drivers being the technology documentation and AML/CFT programme required for the FSC's platform review. Following submission, the FSC's review typically takes 10–16 weeks, subject to any additional information requests arising from the technology assessment. Total timeline from engagement to licence grant is typically 4–7 months for well-prepared applicants. Corporate setup, technology documentation, and AML/CFT programme design can proceed in parallel to optimise the overall timeline.

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