• Payment Account Providers

    • PRU 3.6A.4

      A Payment Account Provider must calculate its Variable Capital Requirement as the sum of the following:
      (a) 2.5% of the first $10 million of monthly payment volume;
      (b) 1% of the next $90 million of monthly payment volume;
      (c) 0.5% of the next $150 million of monthly payment volume; and
      (d) 0.25% of any remaining monthly payment volume.

    • PRU 3.6A.5 PRU 3.6A.5

      (1) Subject to (2), monthly payment volume for a Payment Account Provider must be calculated as the total value of Payment Transactions executed by the Authorised Person in its preceding financial year divided by twelve.
      (2) Where the Authorised Person has not completed a full financial year following its authorisation, the monthly payment volume must be calculated using the value of realised Payment Transactions since its authorisation and the projections contained in its business plan for the remainder of the financial year, subject to any adjustments required by the Regulator.

      • Guidance

        1. Under Rules 3.6A.3(2) and 3.6A.5 (2), the projections for the remainder of the year should be informed by the value of realised funds remitted or Payment Transactions following the authorisation of the Authorised Person.
        2. The monthly payment volume should be split into tranches, with the first $10mn being assigned to the first tranche, the next $90mn to the second tranche and so on
        3. The portion of the Variable Capital Requirement for each tranche is then calculated by multiplying the monthly payment volume in each tranche by the percentage factor associated with that tranche and then summing those portions to derive the overall Variable Capital Requirement.
        4. Examples of the calculation of the Variable Capital Requirement follow for an Authorised Person acting as solely a Money Remitter or a Payment Account Provider, in both cases with a monthly payment volume of $120mn.
         
        Tranche
         
        Monthly payment volume ($mn)
        Activity
        Money Remitter Payment Account Provider
        0 < … ≤ 10 10 1.25% * 10 = 0.125 2.5% * 10 = 0.250
        10 < … ≤ 100 90 0.5% * 90 = 0.450 1%* 90 = 0.900
        100 < … ≤ 250 20 0.25% * 20 = 0.050 0.5%* 20 = 0.100
        … > 250 - - -
        Total 120  
        Variable Capital Requirement($mn) 0.625 1.250