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An Overview of the Payment Services Act (“PS Act”) in Singapore

On 28 January 2020, the Payment Services Act (“PS Act”) came into force and aims to enhance the regulatory framework for payment services in Singapore. The PS Act adopts an activity-based licensing framework in recognition of the different kinds of activities and new developments in payment services. It also expands MAS’ regulatory ambit to include new types of payment services, such as digital payment token services. With the commencement of the PS Act, the Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act were repealed.

The three types of licences as set out in Section 6 of the PS Act are as follows:

  1. Money-Changing (“MC”) licence – for carrying out money changing service

  2. Standard Payment Institution (“SPI”) licence – for conducting payment services below the specified thresholds

  3. Major Payment Institution (“MPI”) licence – for conducting payment services without being subject to the specified thresholds

The table below describes payment services under the PS Act.

Payment Services Act in Singapore
Payment Services Act in Singapore

For their assessment, MAS has set out the following criteria and will look at the applicant’s compliance to its obligations under the PS Act as a licence holder.

  • Governance and ownership structure

  • Fit and proper as well as competency of key individuals

  • Base capital requirement

  • Permanent place of business

  • Security deposit

  • Compliance arrangements

  • External and internal audit arrangements

  • Technology risk management

To find out more about how we can help you to obtain a payment services licence, please do not hesitate to reach out to your usual contact at Lymon or our specialist below:

internal audit, compliance consulting, regulatory compliance, internal audit outsourcing, internal audit services

Jovi Gan, Director

+65 6709 4110

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