Standart payment license
in Singapore

To launch a fintech startup in Singapore, it is necessary to officially register a company in this jurisdiction and obtain a payment license. Access to the Asian market opens up new opportunities for scaling and business development. SBSB Fintech Lawyers experts will tell you in detail about the licensing procedure in Singapore and help you obtain a license to start your project.

Features of Payment Services License Singapore

The SPI (Standard Payment Institution) license, which used to be called SVF, is considered the equivalent of the European EMI license. By obtaining official permission to operate, payment service providers enter the vast Asian market.

In this jurisdiction, the Monetary Authority of Singapore (MAS) is responsible for regulating the financial industry. The Payment Services Act, adopted by the regulator in 2019, defines the rules for the operation of payment system institutions, the key terms related to virtual assets (including digital payment tokens and electronic money), the licensing procedure, control and audit of licensees, and other aspects of their activities. 

The licensing procedure is mandatory in Singapore if you plan to work as a payment service provider. The following categories belong to the latter:

• account opening;
• issuing electronic money;
• cross-border money transfers, as well as domestic ones;
• operations with digital payment tokens;
• servicing mobile and electronic wallets;
• merchant services;
• exchange of fiat, electronic, and digital currencies.

Types of Payment Licenses in Singapore

In accordance with the norms of the law regulating authority issues three types of licenses:

• Standard Payment Institution is worth choosing for those projects whose average monthly transaction size will not exceed the established limits. Threshold values ​​apply to fiat and electronic money: 3 million SGD monthly for various payment services (excluding opening electronic money accounts and exchange services) and 6 million SGD for two or more payment services. The limitations also apply to the amount of electronic money for daily circulation – 5 million SGD;
• Major Payment Institution is a license for a major payment institution that has the same functionality as SPI. The main difference of this permission is the absence of limits on the average monthly volume of transactions and electronic money in circulation;
• Money-Changing is a license for finance exchanging suitable for exchangers that are going to work exclusively with fiat foreign currency and provide services for its sale and purchase.

For more detailed information about the features of each class of license and the optimal choice for your business model, contact SBSB lawyers!

Key Requirements for Singapore Payment License

Regardless of the type of license chosen, the conditions for obtaining it are almost the same. Potential licensees — online payment operators and cryptocurrency platforms — must go through several stages:

• create and register a company in the jurisdiction, then open a physical office in it;
• have a minimum base capital (for SPI, its size is 100,000 SGD);
• at least 1 executive director must be a resident or have a residence permit in the jurisdiction. Shareholders have less strict residency requirements, so foreigners are allowed;
• the applicant must have sufficient competence for such a business — relevant experience in the field of payment or other financial services;
• prepare a package of required documents;
• appoint an AML officer to the staff.

If the regulator makes a positive decision, the company must undergo an independent audit. The procedure is carried out every year.

Cost of Singapore Payment License

The price depends on the chosen class of the permit. The cost of registration is influenced by legal and operational costs at the stage of preparation and collection of a package of documents and company registration, as well as payment for renting premises, salaries, software, security deposit (for MPI), and other operating expenses. Contact our specialists for clarification of the cost of your project!

How to obtain Payment License Singapore

If you need to obtain a payment license in Singapore, we recommend contacting the experts of the SBSB Fintech Lawyers company! Since 2013, our team has been providing comprehensive solutions for fintech and crypto projects. SBSB experts will be able to select an individual solution for your project, taking into account the features of the business model, as well as the legislation of the jurisdiction and the requirements of the regulator. We will take care of solving all legal issues at the stage of preparing documents for the licensing procedure and comprehensive support after a positive decision on the license.

Contact us, and you will receive a full range of turnkey legal services for the successful start of your company!