Licensed non-bank institutions processed nearly one-third of Singapore's cross-border e-commerce transaction value as digital platforms drive growth.

Singapore's licensed non-bank payment institutions processed SGD 9.3 billion in cross-border e-commerce payments in 2024, marking a 34% surge from the prior year and underscoring the shift from traditional bank rails to specialized fintech providers. The figure represents a substantial and growing share of Singapore's cross-border e-commerce flows, as merchants turn to non-bank payment service providers (PSPs) for faster settlement, lower costs, and integrated checkout experiences. With the Monetary Authority of Singapore's (MAS) Major Payment Institution license regime providing a clear regulatory framework, non-bank players are positioned to capture an increasing portion of the country's international payment volume.

Cross-Border E-Commerce in Southeast Asia: A $17 Billion Market in 2024

Southeast Asia's cross-border e-commerce market reached an estimated $17 billion in sales value in 2024, equivalent to more than 11% of total online sales in the region, according to analysis by Citi and Cube. The market is concentrated across six major economies, with Thailand leading at $4.0 billion, followed by Indonesia at $3.9 billion, Vietnam at $3.6 billion, Malaysia at $2.2 billion, the Philippines at $2.1 billion, and Singapore at $1.8 billion. Singapore's 19% share of the regional cross-border e-commerce market reflects its role as a high-value, digitally advanced hub with strong logistics connectivity and a population accustomed to international online shopping.

Sales Value (USD Billion) (USD B)Source: Orionmano Industries

Globally, the cross-border e-commerce market is set to expand from $1.92 trillion in 2024 to $3.37 trillion by 2028, representing a compound annual growth rate of 15.1%, as estimated by EY. This growth is fueled by globalization, digitalization, improved logistics, and rising consumer demand for international products. Southeast Asia, with its young, mobile-first population and rapidly expanding digital economy, is a key contributor to this trajectory.

Singapore's Non-Bank Payment Institutions: Driving SGD 9.3 Billion in Cross-Border Flows

Licensed non-bank institutions processed SGD 9.3 billion in cross-border payments for e-commerce and digital platform merchants in 2024, up 34% year-on-year. This growth outpaces the broader cross-border e-commerce market expansion, indicating that non-bank PSPs are increasingly substituting banks for e-commerce cross-border payments. The shift is driven by technology advantages: non-bank providers leverage API-based integrations, real-time currency conversion, and multi-currency wallets to deliver faster and more cost-effective services than traditional wire transfers.

Singapore's regulatory environment has been instrumental in enabling this growth. The MAS Major Payment Institution license, under the Payment Services Act, provides a clear compliance framework for non-bank PSPs, covering anti-money laundering, customer fund safeguarding, and operational resilience requirements. Companies such as Airwallex, which holds an MAS Major Payment Institution license, offer Singapore businesses payment capabilities to over 200 countries, including free transfers to 120+ countries via local payment rails. The regulatory certainty afforded by MAS has attracted both homegrown fintechs and international players, creating a competitive ecosystem that benefits merchants through lower fees and improved service levels.

Technology and Standards as Enablers: ISO 20022 and Instant Payment Rails

The modernization of payment infrastructure is a critical enabler for non-bank growth. Over 70 countries have adopted the ISO 20022 messaging standard, and by the end of 2025, 80% of high-value settlements are expected to operate on this standard, according to EY. Singapore's MEPS (MAS Electronic Payment System) has already migrated to ISO 20022, providing a foundation for richer data exchange and faster processing. Swift supports coexistence between legacy MT messages and ISO 20022 through November 2025, allowing a gradual transition without disrupting existing flows.

Real-time payment schemes further reduce friction for non-bank PSPs. Singapore's PayNow, linked to regional instant payment systems such as Thailand's PromptPay, Malaysia's DuitNow, and India's UPI, enables near-instant settlement at lower cost than traditional correspondent banking. Non-bank PSPs integrate these local rails into their cross-border offerings, bypassing the multi-hop correspondent banking chain that historically slowed payments and added fees. For e-commerce merchants, this translates to faster access to funds and improved working capital management.

Competitive Dynamics: Banks vs Non-Banks in Cross-Border Payments

Banks still dominate high-value wholesale cross-border payments via SWIFT, particularly for corporate treasury flows and large B2B transactions. SWIFT's GPI network has improved transparency and speed for these flows, and banks remain the trusted counterparty for high-value settlements. However, in the retail e-commerce segment, non-bank PSPs have established clear leadership. By integrating diverse payment methods—credit cards, debit cards, e-wallets, account-to-account transfers, and buy-now-pay-later options—non-bank providers improve checkout conversion rates for merchants serving international customers.

The Financial Stability Board (FSB) has noted that non-bank PSPs have become substitutes for banks in some domains while complementing them in others. In cross-border e-commerce, non-banks are increasingly the primary payment interface for digital platform merchants, while banks handle the underlying settlement and treasury functions. This division of labor is likely to persist, though competition is intensifying as banks invest in their own digital payment platforms and as new entrants—including big tech firms and fintech unicorns—expand their cross-border capabilities.

As Singapore's non-bank payment infrastructure matures and regulations evolve, the SGD 9.3 billion figure is expected to grow further, driven by deeper integration of digital platforms and cross-border trade, though competition from traditional banks and new entrants will intensify.