Out of over 500 applications received, only 33 firms secured Major Payment Institution licenses, reflecting stringent regulatory standards.

The Monetary Authority of Singapore approved fewer than 40% of Major Payment Institution license applications under the Payment Services Act as of 2025, out of over 500 total applications received. This approval rate underscores the regulator's strict compliance-driven approach to licensing payment service providers in one of Asia's most tightly governed financial hubs.

The License Application Landscape

As of 2025, MAS had received over 500 applications for Major Payment Institution licenses under the Payment Services Act. Fewer than 40% of these applications were approved, reflecting a highly selective process. By June 2025, only 33 companies were listed as licensed MPIs for digital payment token services, a fraction of the total applicant pool. The chasm between application volume and approvals signals that MAS is prioritizing quality and compliance over market breadth, creating a deliberate bottleneck that filters out underprepared or insufficiently capitalized entrants.

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  "type": "pie",
  "title": "Distribution of MPI License Applications as of 2025",
  "subtitle": "Approved vs. Not Approved",
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  "series": [
    {
      "name": "Approved (Licensed)",
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      "name": "Not Approved",
      "data": [
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          "y": 467
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  "source": "Source 1 (approval rate <40%, total applications >500); Source 3 (33 licensed as of June 2025). Not approved count derived as total (>500) minus 33."
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Stringent Regulatory Criteria and Guidelines

The low approval rate is no accident. Updated guidelines effective August 26, 2024 require applicants to submit a legal opinion analyzing each proposed payment service, detailing how each regulated service applies to each proposed product or offering. This requirement forces applicants to demonstrate granular understanding of where their business fits within MAS's regulatory framework before MAS even begins substantive review.

Capital requirements compound the barrier. While the minimum base capital for an MPI license is SGD 250,000, applicants must maintain a capital buffer covering 6 to 12 months of operating costs. This buffer requirement effectively multiplies the real capital needed, ensuring that only firms with substantial financial staying power clear the initial threshold.

For firms offering digital payment token services, the bar is higher still. MAS requires the appointment of a dedicated in-house compliance officer physically located in Singapore, ending the previous allowance for external compliance support from parent or related companies. This reflects the higher risks and complexities MAS associates with digital payment token services.

MAS assesses applications on a case-by-case basis, taking into consideration the track record and financial condition of the entity and its holding company, operational readiness including the ability to comply with regulatory requirements, the commitment of the holding company to conduct operations in Singapore, whether the entity is subject to proper supervision by a competent regulatory authority in another jurisdiction, and whether the public interest will be served by granting a license. The combination of prescriptive documentary requirements and broad discretionary criteria gives MAS significant latitude to deny applications that do not meet its evolving standards.

Enforcement and Compliance in Practice

MAS's stringent posture does not end with licensing. On June 27, 2025, MAS imposed composition penalties totaling SGD 960,000 on five MPIs for breaches of anti-money laundering and countering the financing of terrorism requirements. The breaches, identified during MAS examinations, occurred between March 2020 and August 2023 and involved inadequate AML/CFT controls, including failures to screen customers and beneficial owners against relevant ML/TF lists.

This enforcement action demonstrates that MAS actively monitors compliance post-licensing and is willing to impose significant financial penalties even on licensed entities. The revised 2024 guidelines emphasize independent assessments and robust governance to combat money laundering and fraud, setting a higher bar for accountability and risk management in Singapore's payment services sector.

MAS has also introduced a "case-on-hold" process that allows the regulator to reject significantly incomplete applications or consider them withdrawn if applicants fail to respond to information requests within stipulated deadlines. Where submissions are assessed as significantly incomplete or deficient, MAS may reject such applications outright. This mechanism further streamlines the rejection pipeline, culling applications that do not meet the regulator's standards of completeness and responsiveness.

Implications for the Payment Services Industry

The high barrier to entry has resulted in only 33 licensed MPIs as of June 2025, concentrating the market among well-capitalized firms with strong compliance infrastructure. Major players dominate the licensed list—including DBS Vickers Securities, Revolut Technologies Singapore, Paxos Digital Singapore, Ripple Markets APAC, and OKX SG Pte. Ltd.—while smaller entrants face a steep and uncertain path to approval.

For prospective applicants, the updated 2024 guidelines create a more demanding application environment. The requirement to proactively obtain and submit a legal opinion, maintain a substantial capital buffer, and appoint in-country compliance officers elevates the cost and complexity of entering Singapore's payment services market. The "case-on-hold" process adds further uncertainty, as applications that fail to meet MAS's evolving standards during review may be considered withdrawn without formal rejection.

Industry participants should expect the approval rate to remain low. MAS has signaled no intention to relax its criteria, and the combination of prescriptive guidelines, ongoing enforcement, and discretionary case-by-case assessment gives the regulator ample grounds to maintain a tight gate. This environment reinforces Singapore's reputation as a rigorous but stable jurisdiction for payment services, attracting firms willing to invest in compliance infrastructure and weeding out those seeking a lighter regulatory touch.