Name
Global FinTech Guide
Country _ Name
Singapore
SectionTitle
Payment Services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

Singapore has a high adoption rate of modern payment services. Electronic money, domestic money transfers through payment gateway services and payments through payment accounts (such as e-wallets) are very popular payment methods in Singapore. The government has actively promoted the digitization of the economy, which includes the seamless integration of mobile wallets, QR code payments and other cashless digital payment methods.


Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

The Payment Services Act 2019 is the primary legislation setting out the regulatory requirements of payment systems and payment services in Singapore. Modern payment systems are regulated alongside money-changing and remittance services under the PSA, as the PSA was enacted to incorporate and replace the provisions of the Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act.
Under the Payment Services Act 2019 (the “PSA”), payment services in Singapore are defined as the following services: (a) account issuance service; (b) domestic money transfer service; (c) cross-border money transfer service; (d) merchant acquisition service; (e) e-money issuance service; (f) digital payment token service; and (g) a money-changing service. Any business that intends to carry out payment services must be issued one of three licences from the Monetary Authority of Singapore:

  • Standard Payment Institution Licence;
  • Major Payment Institution Licence; or
  • Money-Changing Licence.
The Financial Services and Markets Act 2022 also supplements the existing framework applicable to the licensees by expanding the powers of MAS to issue orders and to expand the existing framework regulating digital token service providers. With effect from 4 April 2025, digital token service providers created or incorporated in Singapore that provide digital token services outside Singapore are subject to licensing requirements and MAS is empowered to conduct anti-money laundering and countering the financing of terrorism inspections.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area
Applicants seeking a licence under the PSA should note that the process for obtaining the licence is resource-intensive and may take anywhere from a few months to over a year to complete. Notably, the application requires a legal opinion issued by a licensed law firm and a qualified independent external auditor must be engaged by the applicant to perform an independent assessment of its policies, procedures and controls in the areas of anti-money laundering/countering the financing of terrorism.


Economic conditions

Market size for payment services and biggest payment service providers

The market for payment services is mature and established with over four hundred payment services licencees as of 2025, and significant growth in this market is still expected within the next decade. Notable products and providers include DBS’s PayLah!, one of Singapore's most popular mobile payment solutions with over a million users, Google Pay and Revolut.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

N/A



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