The following activities, linked or related to the provision or management of payment methods as defined in Article 12 of Regulation No. 03/16/CEMAC/UMAC/CM, are considered payment services such as:
- Credit institutions as defined by the Convention of January 17, 1992, on the harmonization of banking regulations in the Central African States;
- Microfinance institutions as defined by Regulation No. 01/02/CEMAC/UMAC/COBAC/CM of April 13, 2002, concerning the conditions for carrying out and monitoring microfinance activities in the CEMAC region;
- The Public Treasury and postal check services, subject to the specificities related to their status;
- Other approved institutions.
Credit institutions, microfinance institutions, and payment institutions approved or authorized in Cameroon in accordance with the provisions of the regulation in force are authorized to operate as payment service providers.
Payment service providers may provide one or more of the payment services stipulated in Article 3 of the law.
Payment institutions are institutions that, as their regular business activity, exclusively provide payment services and related services, under the conditions set forth in this regulation.
The regulations concerning the operating conditions and supervision of financial institutions apply mutatis mutandis to payment institutions, unless otherwise provided by this regulation and its subsequent amendments.
The Banking Commission establishes, by regulation, the specific exceptions to the rules governing the operation and oversight of each payment service.
Payment institutions may neither provide nor manage negotiable instruments of payment, including checks, promissory notes, bills of exchange, and documentary credits.
Subject to the provisions of Article 3-5 of this Regulation, payment institutions maintain payment accounts that are used exclusively for payment transactions.
Payment institutions do not engage in deposit-taking activities. Funds received by payment institutions from clients remain the property of the clients; they do not constitute deposits within the meaning of Article 5 of the Annex to the Convention of 17 January 1992 and Article 21 of Regulation No. 01/17/CEMAC/UMAC/COBAC.
Payment service providers are not authorized to offer credit services in any form whatsoever in connection with the issuance and management of electronic money, nor to pay interest on funds received in exchange for issued electronic money units.
However, funds from a loan granted to a customer by a credit or microfinance institution may be used to acquire electronic money units.
DEFERRED DEBITS & CREDIT PAYMENT SERVICES IN CAMEROON
Payment institutions in Cameroon may:
1. Grant deferred debits to their clients' accounts for payment transactions made with a payment card or similar device, under the following conditions:
- The total amount of payments is debited from the payment account in a single monthly instalment;
- The total amount of deferred payments does not exceed the authorized credit limit of the payment instrument used.
2. Grant credit payments under the following conditions:
- Credit is authorized exclusively for the purpose of paying for goods or services;
- The total amount of credit does not exceed 100,000 CFA francs;
- The repayment period does not exceed three months.
In the implementation of the provisions of the preceding paragraphs, payment institutions must comply with the rules relating to the effective annual percentage rate and the usury rate applicable to financial institutions.
RELATED SERVICES OF PAYMENT SERVICE PROVIDERS IN CAMEROON
In addition to payment services, payment institutions are authorized to provide the following related services:
1. The investment of resources, drawn from their own funds, in one or more types of low-risk, liquid, and secure accounts and assets, as defined by COBAC regulations;
2. Currency exchange for the purpose of depositing funds in CFA francs into a payment account;
3. Guaranteeing the execution of payment transactions on behalf of other payment service providers;
4. Managing the operation of automated payment machines and terminals;
5. Providing custody, recording, and data processing services on behalf of other payment service providers.