Major Payment license in Singapore

Singapore is one of the most popular jurisdictions for fintech businesses. This is primarily due to its transparent regulatory framework, financial stability, and the government’s support for fintech innovations. In order to legally operate in the field of payment services in Singapore, just like in any other country, a payment institution license is required. Let’s take a closer look at the specifics of the Singapore major payment institution license, its conditions and the cost of obtaining.

How to Obtain Singapore Payment Institution License

Under Singaporean legislation, to establish a financial institution and offer payment services, you need to obtain a Major Payment Institution [MPI] license or standard payment license [SPI].  

The issuance of regulatory documents in Singapore is overseen by the Monetary Authority of Singapore (MAS), an integrated financial regulatory authority that serves as the central bank and is responsible for financial market regulation. Notably, one of MAS’s roles is to promote Singapore as an international center for financial technology.

MPI License in Singapore: Document Requirements, Cost of Acquisition, and Jurisdictional Advantages

Since 2019, the Payment Services Act has been in effect in Singapore, regulating licensing, payment systems, and the operations of payment service providers. According to this act, applicants can apply for three types of permits:

• Money-changing;
• Standard payment institution;
• Major payment institution.

The first license is suitable for enterprises planning to engage solely in currency exchange. In contrast, SPI and MPI licenses in Singapore:allow you to offer various online payment services, including:

• opening accounts;
• transferring money domestically;
• conducting cross-border money transfers;
• issuing e-money;
• working with merchant accounts;
• handling digital payment tokens and cryptocurrencies. 

One significant advantage of the MPI license in Singapore for providers, compared with SPI, is that there are no restrictions on the average monthly transaction volume. Major players in the fintech industry, such as Ripple, Wallex, Western Union, and others, have obtained this license.

Requirements for Obtaining Major Payment Institution License in Singapore

To obtain a mpl singapore license, you need to:

• register your company within the jurisdiction;
• set up a physical office;
• employ an executive director, who can be a resident or citizen of Singapore with the necessary qualifications and relevant experience in the financial sector;
• provide a business plan and 3-year financial plan;
• deposit a charter capital of SGD 250,000, as well as a security deposit of SGD 200,000;
• appoint a local AML officer;
• prepare KYC, AML, and other policies;
• appoint an internal and external auditor.  

If you need additional information about obtaining a major payment institution license in Singapore, you can contact the experts at SBSB Fintech Lawyers.

Cost of MPL in Singapore

When submitting an application, you need to pay a fee: for an MPI license — SGD 1,500 / each service; for SPI license — SGD 1,000 / each service. Additionally, your company will incur expenses related to the paid-up capital, the payroll, and the rental of premises. You should also consider the payment for expert services to prepare the document package.

Advantages of major payment institution license in Singapore

Singapore is a leading fintech hub and one of the best jurisdictions globally. Its popularity can be easily explained by several factors:

• a developed, stable economy;
• a liberal legislative framework regulating digital assets and finance;
• flexible taxation;
• transparent business conditions;
• a constant influx of foreign investments. 

This creates opportunities for companies involved in crypto-assets and digital currencies. If a company obtains a payment institution license in Singapore, it can operate throughout the Asian market.

Obtaining License in Singapore with Full Legal Support

SBSB specializes in obtaining payment licenses from start to finish. Our experts handle all legal matters related to project launch, from preparing the document package and company registration to license acquisition and the successful launch of your project. If you plan to register a company in Singapore and need to obtain an MPI license, SBSB’s specialists will find the best solution based on your company’s business model.