Standard Payment Institution Licence
The Standard Payment Institution Licence is issued by the Monetary Authority of Singapore (MAS) for entities providing payment services below specified thresholds under the Payment Services Act. Validity is confirmed by the agency, and processing times can be found on the MAS website.
- Processing time
- available on the agency's website
- Issuing authority
- MONETARY AUTHORITY OF SINGAPORE (MAS)
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Who needs the Standard Payment Institution Licence
This licence applies to Singapore businesses registered under the following SSIC industry codes:
What's involved in getting the Standard Payment Institution Licence
The scope of the application — what must be in place, how the agency reviews, and where applications typically stall.
What this licence allows the business to do
The Standard Payment Institution Licence enables businesses in Singapore to provide various payment services while remaining below certain transaction thresholds. This includes services such as payment processing, digital wallets, and remittance services, allowing businesses to operate in the growing fintech landscape.
What must be in place before the licence can be granted
Before the licence can be granted, the business must meet specific operational and compliance requirements. This includes having a robust risk management framework, adequate financial resources, and a clear business plan outlining the payment services to be offered. Additionally, the business must ensure that its systems and processes comply with the regulatory standards set by the Monetary Authority of Singapore (MAS).
How the agency reviews and decides
The MAS conducts a thorough review of the application, which may include assessing the business's financial health, governance structure, and operational capabilities. The agency may also require the business to demonstrate its ability to manage risks associated with payment services. A pre-licensing assessment may be conducted to ensure compliance with the Payment Services Act.
Common reasons applications stall
Applications for the Standard Payment Institution Licence can face delays for several reasons. Common issues include incomplete documentation, insufficient financial resources, or failure to demonstrate a robust risk management framework. Additionally, if the proposed services exceed the specified transaction thresholds, the application may be rejected, necessitating a different licence type. Ensuring all requirements are met before submission can help prevent these common pitfalls.
Standard Payment Institution Licence FAQ
Do I need this licence to start operating?
Yes, if your business intends to provide payment services below the specified thresholds outlined in the Payment Services Act, obtaining the Standard Payment Institution Licence is necessary to operate legally in Singapore.
What can my business do once licensed?
Once licensed, your business can offer various payment services, such as payment processing and digital wallet services, as long as the transaction volumes remain below the specified limits set by the Monetary Authority of Singapore.
What happens if I operate without it?
Operating without the Standard Payment Institution Licence can result in significant penalties, including fines and legal action from the Monetary Authority of Singapore. It is crucial to comply with regulatory requirements to avoid these risks.
How does this fit relative to incorporating my company?
Obtaining the Standard Payment Institution Licence is a separate process from incorporating your company. It is advisable to incorporate your business first and then apply for the licence to ensure that all operational and compliance requirements are met.
What's the most common reason applications get rejected?
The most common reason for rejection is failing to meet the financial and operational requirements set by the Monetary Authority of Singapore. Incomplete documentation or exceeding the specified transaction thresholds can also lead to application delays or rejections.
Can a foreign-owned company hold this licence?
Yes, foreign-owned companies can apply for the Standard Payment Institution Licence in Singapore, provided they meet the necessary regulatory requirements and demonstrate the capability to operate within the local payment services framework.
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Other MAS licences
Application for Bank Representative Office
The Application for Bank Representative Office is required by the Monetary Authority of Singapore (MAS) for foreign banks wishing to establish a liaison office in Singapore. This office can conduct market research and feasibility studies but cannot engage in any business transactions. Validity is agency-confirmed, with processing times available on the MAS website.
Approved Clearing House (ACH) or Recognised Clearing House (RCH)
The Approved Clearing House (ACH) or Recognised Clearing House (RCH) licence is issued by the Monetary Authority of Singapore (MAS) for companies wishing to operate a clearing facility under the Securities and Futures Act 2001. Validity is confirmed by the agency, with processing times available on the MAS website.
Approved Exchange (AE) or Recognised Market Operator (RMO)
The Approved Exchange (AE) or Recognised Market Operator (RMO) licence is issued by the Monetary Authority of Singapore (MAS) for entities operating as exchanges or market operators. The validity is confirmed by the agency, and processing times can be found on the MAS website.
Capital Markets Services Licence
The Capital Markets Services Licence is issued by the Monetary Authority of Singapore (MAS) for businesses engaging in regulated activities such as dealing in securities, fund management, and providing custodial services. Validity is agency-confirmed, with processing times available on the MAS website.
Financial Adviser's Licence
The Financial Adviser's Licence is required by the Monetary Authority of Singapore (MAS) for companies wishing to conduct regulated activities under the Financial Advisers Act 2001 (FAA). The validity period is confirmed by the agency, and processing time details can be found on the MAS website.
Insurer and Insurance Broker Licence
The Insurer and Insurance Broker Licence is required by the Monetary Authority of Singapore (MAS) for entities engaging in insurance activities, including insurers and insurance brokers. The validity period is confirmed by the agency, and processing times can be found on the MAS website.