Singapore is one of the most progressive and structured jurisdictions for payments and fintechFintech fintech Short for financial technology, refers to tech-enabled innovation in financial services. regulation, thanks to its Payment Services Act (PSA). Launched in 2020, the PSA has created a consolidated, risk-based framework for licensing and regulating digital payment tokens (DPTs), e-walletsWallets wallets See Digital Wallets., remittances, merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services. acquiring, and more.
This guide explores the history, license categories, application process, and official URLs to help you navigate Singapore’s payment ecosystem.
💡 Overview: What is the Payment Services Act?
The Payment Services Act (PSA) is a consolidated legal framework governed by the Monetary Authority of Singapore (MAS). It came into effect on 28 January 2020, replacing several fragmented laws.
Key goals:
- Promote innovation and growth of payment services
- Ensure consumer protection and financial stability
- Apply a modular licensing approach, based on activities and risks
📌 Official link: Payment Services Act – MAS
🕰️ History & Timeline
| Year | Milestone |
|---|---|
| 2016–2018 | Consultation papers issued by MAS on unified payments regulation |
| Jan 2019 | PSA passed by Singapore Parliament |
| Jan 2020 | PSA officially comes into effect |
| 2021–22 | Expansion to cover crypto and digital payment token services |
| 2023–24 | StablecoinStablecoin stablecoin A type of cryptocurrency pegged to a stable asset (like USD), used to avoid volatility in crypto transactions. regulatory framework added under PSA scope |
| 2025 | Further updates expected for wallet caps, cross-border use, and risk-based tiering |
🧾 Who Needs a PSA License?
You need a PSA license if you’re carrying out any of the following 7 regulated payment services in Singapore:
| Service Type | Description |
|---|---|
| Account Issuance | Offering e-wallets, stored value facilities |
| Domestic Money Transfer | Transferring funds between users in Singapore |
| Cross-border Money Transfer | Remittance services to/from Singapore |
| Merchant Acquisition | Enabling merchants to accept card/digital payments |
| E-money Issuance | Issuing stored value for payments (prepaid balances) |
| DPT Services (Crypto) | Buying/selling/exchange of crypto (DPT = Digital Payment Token) |
| Money-changing | Physical cash conversion (e.g. SGD to USD) |
📊 Types of Licenses
| License Type | Who It’s For | Requirements | Transaction Volume Limit |
|---|---|---|---|
| Money-Changing License | Physical money changers only | Low | N/A |
| Standard Payment Institution (SPI) | Small-to-medium payment providers | Moderate | ≤ S$3M monthly per service |
| Major Payment Institution (MPI) | Large PSPs, wallet providers, crypto exchanges | High | > S$3M monthly per service OR > S$5M in e-money float |
🔗 Full license comparison: MAS Licensing Framework
📝 Application Process & Timelines
| Step | Description |
|---|---|
| 1. Pre-application | Prepare business model, financial projections, AML/KYC policies |
| 2. Apply on MAS’s Corporate e-Lodgment | Submit via MAS portal with all documentation |
| 3. MAS Review | MAS may request clarifications, interviews, or additional documents |
| 4. Grant of License | MAS publishes your license grant in their Financial Institutions Directory |
📅 Timeline Estimate:
- SPI License: ~3–6 months
- MPI License: ~6–12+ months (longer for DPTs or if foreign-based)
🔐 Ongoing Compliance Requirements
| Area | Details |
|---|---|
| AML/CFT Program | Must comply with MAS’s AML guidelines & submit STRs |
| Technology Risk Management (TRM) | TRM framework required (especially for MPI/DPT) |
| Audit & Reporting | Annual audits, financial reporting, AML reports |
| Cyber Hygiene | Compliance with MAS Technology Risk Management Notice |
| User Fund Safeguards | MPI must safeguard user funds in trust accounts or equivalent |
🔗 Full guide: MAS Guidelines on Payment Services
🔗 Useful Links & Resources
| Resource | URL |
|---|---|
| PSA Overview | https://www.mas.gov.sg/regulation/payment-services |
| License Application Form | https://www.mas.gov.sg/e-services/forms/payment-services-act-application-form |
| MAS Guidelines (AML/Compliance) | https://www.mas.gov.sg/regulation/guidelines |
| List of Licensed Payment Institutions | https://eservices.mas.gov.sg/fid |
| MAS FinTech Regulatory Sandbox | https://www.mas.gov.sg/development/fintech/regulatory-sandbox |
🧭 Summary Table
| Area | Details |
|---|---|
| Law Name | Payment Services Act 2019 (No. 2 of 2019) |
| Regulator | Monetary Authority of Singapore (MAS) |
| Number of License Types | 3 |
| Applies to | Crypto, e-wallets, remittances, acquiring, e-money, etc. |
| License Timelines | 3 to 12 months |
| Official Website | mas.gov.sg |
✅ Conclusion
Singapore’s Payment Services Act offers a robust, modular, and forward-looking approach to regulating payment systems. Whether you’re launching a crypto exchange, cross-border wallet, or acquiring solution, the PSA provides a clear framework with strong regulatory credibility.
While the application process can be rigorous—especially for MPI and DPT licenses—having a Singapore licenseadds global legitimacy, helps with banking relationships, and is often a prerequisite for expansion in the APAC region.
Vibhu Arya is a fintech and payments expert with 15+ years of experience simplifying how money moves across digital and retail ecosystems. He’s led strategy and partnerships at Citibank, Adyen, and IKEA, and helped scale fintech startups (Snapdeal, iPaylinks) to $1B+ valuations. Vibhu’s expertise spans cards, crypto, cross-border, and real-time payments. He is the founder of PaymentsPedia.com, where he writes about the future of payments.
📧 vibhu@paymentspedia.com | LinkedIn