Monetary Authority of Singapore streamlined licensing in August 2024, supporting the fintech hub's rapid expansion.

The Monetary Authority of Singapore (MAS) had licensed 618 Major Payment Institutions (MPIs) as of December 2024, up from 515 in 2022—a 20% increase over two years that underscores Singapore’s accelerating role as a regulated fintech hub under the Payment Services Act (PSA). The data, cited in a public AI summary drawing from the MAS Financial Institutions Directory, reflects sustained demand for the MPI licence, which permits firms to conduct multiple payment services without being subject to statutory transaction volume or float limits. This growth trajectory coincides with MAS’s August 2024 revisions to its licensing guidelines, designed to improve application clarity and efficiency while maintaining robust regulatory standards.

Growth in MPI Licenses: 2022–2024

As of December 2024, Singapore had licensed 618 Major Payment Institutions, an increase from 515 MPIs licensed in 2022. This 20% growth over two years signals a steady expansion of regulated payment services within the city-state’s financial ecosystem. MAS regulates all MPIs under the Payment Services Act (PSA), which provides the legal framework for payment service providers operating in Singapore.

Source: Orionmano Industries

The MPI count includes a diverse roster of global and regional players, from traditional payment processors to digital payment token firms and cross-border payment specialists. The increase through 2024 suggests that market participants continue to view Singapore’s regulatory regime as both rigorous and conducive to business, even as compliance requirements have grown more detailed.

Regulatory Revisions Under the Payment Services Act

On 26 July 2024, MAS published a revised version of the Guidelines on Licensing for Payment Service Providers (PS-G01), effective 26 August 2024. These revisions apply to current and future Standard Payment Institutions (SPIs) and MPIs under the PSA, and introduce several notable changes to the application process.

New requirements include the submission of a legal opinion for all new MPI and SPI applicants, as well as for existing licensees applying to vary their licence to add digital payment token (DPT) services. The legal opinion must be issued by a law firm experienced in advising on the PS Act in Singapore and must include a clear summary of the applicant’s business model and an assessment of whether the proposed services or products are regulated payment services. MAS may also require legal opinions from other applicants on an ad-hoc basis where warranted, such as for complex business models.

Additionally, MAS now requires an independent external auditor assessment for certain applications, including those involving complex business models or where MAS deems such an assessment necessary based on risk and complexity. MAS also introduced a case-on-hold process for applications under review, designed to improve efficiency by allowing applicants to pause proceedings while addressing regulatory queries.

Crucially, applications submitted before 26 August 2024 are not subject to these new requirements. However, MAS reserves the right to request legal opinions or independent external auditor assessments on an ad-hoc basis for pre-existing applications as well, based on the risks and complexity of each case.

Operational Thresholds and Security Requirements

An MPI licence provides significant operational flexibility. Under the PSA, an MPI licensee can conduct multiple payment services without being subjected to threshold limits on transaction volume or float. Without an MPI licence, payment service providers are generally limited to S$3 million in monthly transactions for any single payment service (other than e-money account issuance and money-changing services), S$6 million in monthly transactions for two or more such services, and S$5 million in daily outstanding e-money. An MPI licence removes these caps, enabling scaled operations.

Security requirements are tiered. For entities where monthly payment transactions do not exceed S$6 million on average for any payment service within a calendar year, the required security is S$100,000. For all other cases, the figure is S$200,000. The security must be in the form of a cash deposit with MAS or a bank guarantee.

Governance requirements vary by entity type. Sole proprietorships require the proprietor to be a Singapore citizen with a minimum of one year’s relevant working or business experience on a full-time basis. For partnerships and limited liability partnerships, a majority of partners must be Singapore citizens; if there are only two partners, only one of those two needs to be a Singapore citizen. Each partner must also have a minimum of one year’s relevant experience.

Recent Entrants and Strategic Implications

In 2024, BC Payments Pte. Ltd., a wholly owned subsidiary of Banking Circle S.A., was granted an MPI licence by MAS. BC Payments Singapore is now fully licensed to facilitate cross-border payment flows for banks, fintechs, and global payment providers in Singapore. The company has expanded its local presence and capabilities, leveraging Banking Circle’s global clearing infrastructure to connect international financial institutions with local clearing rails through a single API.

As Banking Circle’s Chief Commercial Officer Mishal Ruparel stated, “Singapore’s progressive regulatory framework and status as a leading global financial centre make it the natural base for our regional expansion and a strategic hub for our Asia Pacific operations.” Marc Chua, CEO of BC Payments Singapore, noted that the city-state’s “proximity to fast-growing digital economies enables us to stay ahead of client needs.”

The BC Payments case illustrates how the MPI licence attracts global payment infrastructure firms seeking a regulated base in Asia. As MAS tightens licensing requirements while maintaining an open framework, the MPI count is likely to continue rising, positioning Singapore as a premier regulated hub for global digital payment players. For industry observers, the trend signals sustained regulatory confidence in Singapore’s ability to host complex, cross-border payment operations within a well-defined compliance environment.