Who’s Licensed, and How: A Breakdown of Payment Services Licences in Singapore
- Eastern Mezzanine
- May 5
- 6 min read
Updated: May 7
Widely regarded as a modern finance mecca within and outside Asia, Singapore’s status as a premier global financial centre has been increasingly amplified by its burgeoning fintech ecosystem.
According to the Monetary Authority of Singapore (MAS)'s Financial Services Industry Transformation Map (2016 - 2020), over 1,400 new fintech firms were formed during this period, with more than US$2.5 billion of cumulative fintech investments. In 2025, MAS aims to achieve 4.0% to 5.0% value-added growth from the financial services sector alone.
What underpins this growth and MAS’s confidence in fintechs and financial services? The answer lies in the Payment Services Act (PSA), a robust and adaptive regulatory framework managed by the MAS.
Learn more about the PSA in our article here.
For any business engaged in payment services—be it payment processing, operating e-wallets, facilitating money transfers, or dealing with digital payment tokens (DPTs)—mastering the PSA and its licensing requirements is essential to operating legally within Singapore’s shores.
The landscape, however, is not static. With rapid technological advancements and evolving risks, staying abreast of the nuances between the Standard Payment Institution (SPI) and Major Payment Institution (MPI) licences is crucial.
Whether you are a budding business looking to enter Singapore or a seasoned veteran in the realm of payment services, this article serves as a helpful reference on the different licenses available.
Do you need a license? Of course you do.
That is, if your business activities fall under any of MAS’ identified seven regulated payment services within Singapore:
Account issuance services: Operating payment accounts such as e-wallets
Domestic money transfer services: Facilitators of fund transfers between individuals and businesses within Singapore
Cross-border money transfer services: Facilitators of fund transfers in and out of Singapore
Merchant acquisition services: Facilitators of merchant payment acceptance
E-money issuance services: Issuers of electronically stored money (e-money) for payments or fund transfers
Digital payment token (DPT) services: Facilitators of the purchase, sale, or exchange of cryptocurrencies
Money-changing services: Facilitators of the purchase and sale of foreign currency notes
If your business engages in any of these activities, heads up: you very likely need a payment service license from MAS. Read on to learn about the different license types and which one best fits your business.
What payment services licenses are available?
The MAS adopts an activity-based approach in its licensing process. There are three licenses available under this system, the differentiator being the scale of operations, specifically measured by monthly transaction value or e-money float thresholds.
1. Money-changing license
As its name suggests, this is issued to businesses providing simple over-the-counter money-changing services. MAS perceives such businesses as low-risk and lightly regulates them.
2. Standard Payment Institution (SPI) license
The SPI license is one of the two major licenses, issued to businesses operating below specific volume thresholds. This license often serves as the entry point for fintech startups or companies whose payment activities are secondary to their main business.
Your business qualifies for an SPI license if it works within the following thresholds:
Total value of payment transactions for one payment service in a month: ≤ $3 million
Total value of payment transactions for two or more payment services in a month: ≤ $6 million
Average daily e-money float: ≤ $5 million
Minimum initial and ongoing financial requirements (for Singapore-incorporated businesses): Base capital of at least $100,000
Net head office funds (for foreign businesses): At least $100,000
Regulatory requirements are generally lighter for SPI license holders as the MAS intends to encourage innovation amongst them. Mandatory AML/CFT policies and controls apply, as do requirements to safeguard customer funds and manage technology risks.
3. Major Payment Institution (MPI) license
Moving the needle to the opposite end of the spectrum, the MPI license is issued to businesses exceeding SPI thresholds. Larger payment processors, dominant e-wallet providers, major remittance firms, and major cryptocurrency exchanges fall under this category’s purview.
Typically, MPIs do not have restrictions on payment transaction flows or thresholds, and are allowed to operate above the thresholds highlighted above. They do, however, have initial and ongoing financial requirements to fulfil as follows:
Singapore-incorporated MPI: Base capital of at least $250,000
Foreign company: Net head office funds of at least $250,000
As an MPI, you will also need to maintain a security deposit to protect your customers’ money. Depending on the value of your transactions, the minimum security deposit will differ:
Value of transactions is ≤ $6 million: Security deposit of $100,000
Value of transactions is > $6 million: Security deposit of $200,000
Reflecting their larger scale and potential systemic impact, MAS is far stricter in its regulation of MPIs. Subject to higher supervisory expectations, MPIs are required to have comprehensive AML/CFT systems built with dedicated compliance resources. It is also mandatory for them to safeguard customer funds via specific methods such as trust accounts and bank guarantees.
MPIs are further expected to put in place advanced technology risk management and cybersecurity measures, often requiring independent audits. Between 2023 and 2024, MAS has shown increased focus in this area, particularly with relation to operational resilience and incident reporting.
Getting licensed is rigorous
Now that you know the requirements for each license type, are you ready to apply for one?
The process itself is fairly demanding, as you must demonstrate their fitness, propriety, financial stability, and operational capabilities to MAS.
You will first need to define your business model, clearly outlining your payment services to determine which license type to get. Next, put together a comprehensive application package, including detailed business plans, financial projections, shareholder and director information, robust AML/CFT policies, technology risk assessments, safeguarding procedures, and compliance measures.
Following this, you will have to head over to MASNet to file a formal application. MAS will rigorously assess your risk management, governance, and compliance readiness at this point. Expect this phase to last several months, reflecting the depth of scrutiny, especially for MPI and DPT applicants.
Should you be successful in your application, MAS will first grant you an in-principle approval, followed by the final license once you meet all their conditions.
The rich licensing landscape of Singapore
Arduous the process of acquiring a payment service license in Singapore may be, yet it is well worth the effort. Given the island nation’s business-friendly environment that is carefully intertwined with the government’s digital-first approach, it comes as no surprise that businesses choose to set up their operations here.
Don’t take our word for it, as the numbers speak for themselves. According to the MAS Financial Institutions Directory, there are about 492 entities currently licensed under the PSA (accurate as of April 2025).
Of this number, there are around 235 MPIs, a significant portion of which are involved in cross-border money transfers, merchant acquisition, and increasingly, DPT services. As for SPIs, there are 13, making up a vibrant base of smaller fintechs and businesses integrating specific payment functionalities.
Across all these licensed businesses, MAS has incorporated a continuous, intensified focus on AML/CFT robustness, along with heightened expectations around resilience against cyber threats and scams. MAS has also emphasised greater vigilance for consumer protection over DPTs, mandating associated businesses to clearly communicate the risks—especially if their products and services target retail customers.
Continuous compliance is the way to go
Obtaining your license marks the start of an everlasting regulatory engagement with MAS. As part of your obligations, you will need to regularly submit data on your transactions, capital, safeguards, and compliance measures to MAS.
You are also expected to maintain rigorous, ongoing processes for transaction monitoring, sanctions screening, and customer due diligence [also known as Know Your Customer (KYC)].
To complement these processes, you have to periodically review and enhance your business’s technology risk, cybersecurity, and operational resilience frameworks, in line with evolving threats highlighted by MAS advisories.
One such example is the July 2024 focus on strengthening phishing resilience, where MAS partnered The Association of Banks in Singapore (ABS) to fortify retail banks’ defences against phishing scams.
Non-compliance carries severe consequences, including substantial fines, operational restrictions, public reprimands, and licence revocation.
Use our checklist to stay compliant: You’ve Got the Licence. Now Keep It: 11 Tips for Payment Service Providers in Singapore
Simplify your licensing process with Eastern Mezzanine’s expert legal counsel
The application process for payment services licenses is complex, requiring a high level of precision to navigate and execute.
This is where Eastern Mezzanine shines, ever ready to support your licensing process. Our team of legal counsels is equipped with deep expertise in payment services, poised to guide you through the licensing process.
From ensuring you apply for the correct license and crafting compliant applications to managing communications with MAS and building robust compliance frameworks, we are here to support you every step of the way.
