Major payment institutions are licensed and regulated under the Payment Services Act (“PS Act”) to provide payment services without being subject to the specified thresholds.
In Singapore, payment service providers are classified into several categories under the PSA, including:
- Money-Changers: These entities are licensed to provide services such as currency exchange.
- Standard Payment Institutions (SPIs): SPIs are licensed to provide domestic and cross-border money transfer services, merchant acquisition, and electronic money issuance. They are regulated and supervised by MAS.
- Major Payment Institutions (MPIs): While the term “major payment institution” may not be explicitly defined in Singapore’s regulations, certain payment institutions, especially those handling large transaction volumes or playing a significant role in the payment industry, could be considered major or significant by virtue of their operations. These institutions would typically be classified as SPIs but could be subject to additional regulatory scrutiny due to their size or market influence.
- Payment Service Providers (PSPs): PSPs include a range of entities offering specific payment services. They might not be classified as SPIs or MPIs but still require licenses and must comply with the PSA’s regulatory requirements.
The MAS oversees and regulates all payment service providers in Singapore to ensure that they adhere to licensing, compliance, and anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. MAS’s approach to regulation is risk-based, which means that entities with a higher risk profile, including those handling significant transaction volumes or holding large customer funds, may face more stringent regulatory requirements and oversight.