Standard & Major Payment institution licence
Standard vs Major Payment Institution
Defining what licence type applies to your business follows the threshold stated below.
According to MAS (Pages)
last revised 26 June 2020
Standard payment institutions are licensed and regulated under the Payment Services Act ("PS Act") to provide payment services below the specified thresholds.
Specified financial threshold factors:
- Transaction Value* – Average monthly payment transactions for any activity > $3 million (average over a calendar year)
- E-Money Float – Average daily e-money float > $5 million (average over a calendar year)
According to MAS (Pages)
last revised 31 March 2020
Major payment institutions are licensed and regulated under the Payment Services Act ("PS Act") to provide payment services without being subject to the specified thresholds.
The thresholds are set out in section 6(5) of the PS Act. In summary, these are:
- S$3 million monthly transactions for any payment service (other than e-money account issuance and money-changing services).
- S$6 million monthly transactions for two or more payment services (other than e-money account issuance and money-changing services).
- S$5 million of daily outstanding e-money.
Requirement to note for monthly payment transactions exceeding $6M (for two or more licensable activities)
Safeguarding of customer monies from loss through the institutions’ insolvency using any of the following means:
a. An undertaking or guarantee by any bank in Singapore or prescribed financial institution to be fully liable to the customer for such monies;
b. A deposit in a trust account; or
c. Safeguarding in such other manner as may be prescribed by MAS.