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Under the Payment Services Act, the Monetary Authority of Singapore (MAS) gives out three payment licences: standard payment institution (SPI), major payment institution (MPI) and money-changing. Base capital is S$100,000 for an SPI and S$250,000 for an MPI. Checked .
SingaporeCompanySetupGuide.com is an independent guide, not MAS, ACRA or a law firm. Providers may pay us for requests from our forms. The licence application is yours, and a regulated firm should take legal advice.
Which payment activities are regulated?
MAS lists seven payment services.
| Service | MAS description |
|---|---|
| Account issuance | Issuing a payment account or running the operations for it |
| Domestic money transfer | Local funds transfers, which can include payment gateways and kiosks |
| Cross-border money transfer | Inbound or outbound remittance, and facilitating remittance between countries |
| Merchant acquisition | Accepting and processing payments for a merchant under contract |
| E-money issuance | Issuing e-money used for payments or transfers |
| Digital payment token service | Buying or selling, exchange platforms, transmission, custody wallets, and actively facilitating trades |
| Money-changing | Buying or selling foreign currency notes |
For crypto tokens in detail, read crypto DPT licence. For the wider fintech question, read fintech company.
SPI or MPI: which one are you?
| Item | SPI | MPI |
|---|---|---|
| Monthly volume, one service | Up to S$3 million | Above the SPI limits |
| Monthly volume, two or more services | Up to S$6 million | Above the SPI limits |
| Daily outstanding e-money | Up to S$5 million | Above the SPI limits |
| Minimum base capital | S$100,000 | S$250,000 |
| Security deposit | None listed | S$100,000 or S$200,000 |
The monthly limits apply to payment services other than e-money account issuance and money-changing. The MPI deposit is S$100,000 where average monthly transactions do not exceed S$6 million, and S$200,000 in all other cases. It is cash with MAS or a bank guarantee. MAS also expects a capital buffer on top of the base amount, relative to the scale of your business.
Who runs the company locally?
Whichever licence you want, MAS asks for these local ties:
- A Singapore-incorporated company, or a branch of a foreign corporation.
- At least one person present at the place of business or registered office.
- A director set-up of one executive director who is a Singapore citizen or PR, or one executive director on an Employment Pass plus one other director who is a citizen or PR.
A sole proprietor applying for a money-changing licence needs at least 1 year of relevant full-time experience. If you are a foreign founder, see register a company as a foreigner and nominee director for the ACRA side.
What are the steps?
- Decide which of the seven services you provide and which licence fits your volume.
- Register a private limited company with ACRA. Fees are S$15 for the name and S$300 to register.
- Appoint directors who meet MAS's rules, and set up the registered address.
- Fund the company to at least the base capital, plus a buffer.
- Prepare the licence application under MAS guidelines PS-G01. The version read is effective .
- For an MPI, arrange the deposit or bank guarantee.
The MAS page lists no application fee and no processing time. Do not plan hires, marketing or a launch date around an assumed approval date.
Is there a sandbox?
MAS runs a FinTech Regulatory Sandbox that relaxes some requirements for live experiments. Entry rules are on MAS pages that we did not verify, so read them before you rely on it.
What about the company bank account?
You need an operating account and, for an MPI, possibly a bank for the guarantee. Read business bank account before you choose a bank.
Which SSIC code fits?
You pick the code on Bizfile. The MAS pages read here do not name a code, so none is quoted. Use the finder explained on SSIC code.
Where does a provider help?
A provider can register the company, supply the address, arrange directors where allowed and prepare the bank file. The MAS application, capital and compliance function remain yours. Send the quote form and we pass your request to suitable providers.
Sources
- MAS, licensing for payment service providers: https://www.mas.gov.sg/regulation/payments/licensing-for-payment-service-providers (licence types, thresholds, capital, deposit, directors)
- MAS, types of payment services: https://www.mas.gov.sg/regulation/payments/licensing-for-payment-service-providers/types-of-payment-services (seven services)
- MAS, PS-G01 guidelines on licensing: https://www.mas.gov.sg/regulation/guidelines/ps-g01-guidelines-on-licensing-for-payment-service-providers (version date)
