Major Payment Institution License Services in Singapore
Introduction
Obtaining a Major Payment Institution License in Singapore is a pivotal step for significant payment service businesses that run one or more regulated payment activities. The MPI License is the higher-tier license under the payments regulatory regime in Singapore, imposing more in-depth requirements and obligations, commensurate with broader considerations for system and consumer protection in large-volume payments operations. A well-prepared, professionally managed application is the basis for timely approval and a compliant, sustainable licensed operation.
Our Major Payment Institution License in Singapore services are provided by experts and seasoned professionals who have extensive experience in MPI licensing, regulatory submissions, and financial services compliance advisory. Our technical and process expertise, along with our unbiased perspective, enable us to assist payment businesses at all stages of the MPI License application and registration process. Each client is different, and so are our payment methods, organisational structure, and regulatory environment.
Understanding Major Payment Institution License in Singapore
A Major Payment Institution License (MPI) allows businesses to carry out one or more of the regulated payment services if the volume and/or the amount of stored value is/are above the thresholds corresponding to the Standard Payment Institution tier. The regulated payment services covered by the MPI License include account issuance, domestic and cross-border money transfers, merchant acquisition, e-money issuance, digital payment token services, and money-changing services. The MPI framework ensures that those payment operators with higher volumes have a proportionately extensive licensing, accounting and compliance regime.
In Singapore, the nature of payment services applied for, the scope and complexity of the applicant’s business and the applicable MPI License requirements to each of these services, the documentation and governance requirements expected during the registration process, etc., are all unique factors that must be taken into consideration when entering into an MPI License engagement. The MPEG framework imposes greater compliance and safeguarding obligations, higher capital requirements, and more specific ongoing compliance requirements on the Payment Institution tier than on the Standard Payment Institution tier. The successful completion of an MPI License application in Singapore demonstrates the true operational size, compliance intent and governance experience of the company that applies for it.
Major Payment Institution License Services We Provide
- MPI License Application Management: We handle the entire Major Payment Institution License application process in Singapore from start to finish, ensuring that all necessary documents are prepared, regulated submissions are made across all payment services applied for, and guiding the applicant through each step of the registration process to create a complete, well-structured and submission-ready application package.
- Singapore MPI License Requirements Assessment: Our MPI License consulting service consists of a detailed evaluation of the applicant's current role vis-à-vis the MPI License requirements, which covers the types of payment services being looked for, the safeguarding requirements, capital requirements, compliance requirements, technology infrastructure and the key management capabilities required for each regulated activity.
- Documentation preparation and review: We provide preparation, review and organisation of all necessary documentation for submission for the registration of a Major Payment Institution, such as business plans, safeguarding framework documentation, anti-money laundering policies, risk management framework, technology risk assessment, and personnel disclosures, including ensuring submissions meet the applicable regulatory standard.
- MPI License Compliance Framework Design: Our expert payment industry licensing consultants can assist with the design and implementation of the compliance, safeguarding, anti-money laundering and risk management frameworks necessary to meet the compliance solutions requirements for an MPI License and to ensure that the payment institution's activities are regulated after the licence is issued.
- Major Payment Institution License Renewal: We provide structured Major Payment Institution License Renewal support in Singapore, which covers a review of the current compliance position, updating of documents to incorporate changes made over the course of the license, and the submission of the licensee renewal to ensure continuity of the license without any disruption to the payment operations of the business.
- Post-Licence Compliance and Ongoing Advisory: Our trusted payment institution licence provider services are not only available for the initial application process, but also for ongoing compliance solutions support, assisting payment institutions with the regulatory reporting process, monitoring the payment institutions' safeguarding programme, as well as advising payment institutions on variations to their licence or any regulatory developments that could impact the payment institutions' authorised activities.
Why Clients Choose Our Major Payment Institution License Services in Singapore
Specialist Major Payment Institution Licensing Expertise:
We have a strong understanding of the Major Payment Institution License registration process and have undertaken numerous high-volume payment services regulatory applications in Singapore’s financial sector, ensuring applications are complete, well-substantiated and are best suited for quick review
Independent & Objective Approach:
We deliver our Major Payment Institution License services independently and offer objective advice and diligently prepared submissions that instil confidence in regulatory stakeholders that all MPI License applications we handle are complete, accurate and integrity.
Excellent Knowledge of Regulatory Requirements:
Our professional MPI licensing consultants can handle the Singapore MPI License requirements and the dynamic payments regulatory landscape with confidence, ensuring that everything is structured, sequenced and compliant with the relevant regulations and stakeholders’ expectations throughout.
Senior Involvement:
End-to-end application, renewal, and compliance advisory engagements for major payment institution licences are delivered by our seasoned professionals with quality, clarity, and accountability.
When You Need Major Payment Institution License Services
Payment businesses and fintech operators use our services and support in applying for and obtaining a Major Payment Institution (MPI) licence in Singapore in many scenarios, such as:
- Setting up a new payment services business at a large scale that needs to be licensed as a Major Payment Institution (MPI) before starting a payment-regulated business that exceeds the Standard Payment Institution thresholds.
- Evolving from a Standard Payment Institution License to a Major Payment Institution License when transaction volumes or stored value balances exceed the limits of the lower-tier license.
- Filling out the first time an MPI License application is submitted and having to deal with the Singapore MPI License requirements, documentation standards and submission process effectively with structured professional MPI licensing consultants.
- Renewing a current Major Payment Institution License in Singapore and needing to ensure a complete, timely and compliant submission to the MAS to get the license renewed.
- To be authorised to provide regulated payment services under an existing MPI License (higher-tier) in Singapore, a licence variation application will need to answer a regulatory query or compliance review for which a well-prepared and supported response to a regulatory inquiry into the ongoing governance, safeguarding and operational fitness of the payment institution in the context of the MPI.
Our Approach to Major Payment Institution License Advisory
Engagement Scoping
First, we will lay the groundwork by clarifying the applicant’s payment business model, identifying the regulated payment services for which MPI License authorisation is being applied for, and outlining the general regulatory and commercial landscape in Singapore relevant to the engagement. This includes a consideration of, amongst other things, the size of proposed operations, technology infrastructure, transaction flows, customer base, ownership and management of the business and any existing or previous regulatory experience relevant to the application for a Major Payment Institution License.
At this stage, we effectively engage with the client to ensure we have the deliverables, timeframes, and the critical points that the MPI License application fee must cover and demonstrate for each payment service applied for. Avoidable delays during regulatory review are eliminated, and the process is logically organised, managed, and efficient, whether it is a new application, a tier upgrade from an existing SPI License, a licence variation to add services, or a renewal.
The scoping phase can be well structured to identify readiness gaps or documentation requirements before formal preparation, specifically for the Major Payment Institution License registration process, allowing the client to address them in an orderly and timely manner. This early clarity will serve as a foundation and good information base for all subsequent documentation and submission activities for the entire MPI License advisory engagement in Singapore.
Licensing Readiness Assessment
We first evaluate the applicant’s current position using a structured approach to determine whether they meet the Singapore MPI License requirements for each regulated payment service for which they are applying. This includes the transaction volume thresholds that trigger the application of the MPI licensing tier, base capital and safeguarding requirements, anti-money laundering programme adequacy, technology and cyber security arrangements, governance arrangements, and the qualifications and fitness of key management personnel.
The readiness assessment assesses requirements for substantive MPI License compliance solutions, as well as the quality and completeness of the documentation and evidence available to support each part of the application. By having a dual review, the submission will be credible, well-evidenced and complete. It will reflect the payment institution’s actual preparedness to act as a Major Payment Institution under Singapore’s payments regulations.
The assessment results are summarised clearly and prioritised, and form the basis of the preparation plan and the actions needed before submission of the application. This objective baseline will help the client gain a solid understanding of their position relative to the Singapore MPI License requirements and the actions needed to secure a well-supported, completed, and submission-ready Institution License application.
Documentation Preparation
All necessary documents for registration as a Major Payment Institution under the relevant regulatory regime in Singapore have been prepared, including for each regulated payment service for which registration is being applied. This includes business plan, safeguarding documentation, framework documentation, anti-money laundering and countering the financing of terrorism policy documentation, risk management framework, technology and cybersecurity risk assessment, business continuity arrangements, and detailed disclosures regarding the management and directors of the applicant entity.
An important aspect of documentation preparation is that all documents are internally consistent, easy to read, and properly aligned with all payment services and operating arrangements included in the application. Red flags that are typical sources of regulatory enquiries and delays in the MPI License registration process include inconsistencies and gaps between the documents and you. Our methodical approach aims to minimise the likelihood of these issues arising at the finalisation and submission of the application package.
We prepare in collaboration with the client’s team, coordinating the collection, verification, and cross-checking of information, and organising all supporting documentation in the form and depth expected by the regulator. The result is a fully formed, well-structured, and submission-ready Major Payment Institution License application that clearly depicts the payment institution’s size, governance structure, and operational infrastructure.
Application Submission and Coordination
All documents are ready for preparation and review, and for the formal submission of the Major Payment Institution License application in Singapore, ensuring all necessary documents are submitted correctly through the proper regulatory channels and at the correct times. The speed of our MPI License workflow assistance service is designed to produce a well-organised, comprehensive initial submission to avoid procedural hassles and unnecessary delays in the assessment process.
We maintain comprehensive, structured documentation of all submissions and regulatory authority communications, providing the client with a clear, documented timeline of the Major Payment Institution License registration process. This disciplined record-keeping facilitates effective monitoring of the application and enables timely, ready answers to requests for further information or clarification throughout the formal application period.
We closely track the MPI License application submission and review process and communicate with the client throughout the process on any developments, timelines or actions the client must take. This continuous supervision ensures that no step is overlooked in the rapid process of obtaining a license and that the client is ready to handle interactions related to the formal assessment of the application.
Regulatory Query Management
During the evaluation of a Major Payment Institution License application in Singapore, regulators may raise common questions, request clarifications, and request additional documentation. All such communications are handled on the client’s behalf; responses are prepared in a clear, accurate, and well-evidenced format; and each question is answered in full and consistently throughout the overall application narrative and the Singapore MPI License requirements for each payment service covered by the application.
All regulatory enquiries are thoroughly reviewed to ascertain the exact information being requested and to provide the best possible, most focused reply, without raising new concerns for the regulatory body. With careful and diligent application of this approach to query management, a positive outcome of the Minor Payment Institution License process is more likely to be about the process we record all questions and answers, creating transparency and a close relationship between our clients and us, informing them and making them part of every response before it is returned. This way, the client will always have full visibility into their application and won’t miss the expertise and regulatory engagement experience of our professional MPI licensing consultants throughout the entire process.
Post-Approval Support and Ongoing Advisory
After the Major Payment Institution License, we provided structured support to help clients better understand and fulfil the ongoing obligations associated with the higher-tier authorisation. It also provides advice on implementing and monitoring the safeguards programme, regulatory reporting requirements, arrangements for compliance with the MPI License, and the strengthened governance and operational standards expected from an MPI.
We can help the client implement and maintain the internal controls, security, compliance, and reporting systems necessary to comply with the terms of the Major Payment Institution License. This includes policy changes as the regulatory landscape evolves, assistance with notifications required by changes in payment services or business operations, and advice on maintaining the necessary capital and safeguarding during the licence period.
In addition to immediate post-licence compliance, we can act as a trusted MPI License provider for ongoing regulatory advisory and compliance, covering upcoming Major Payment Institution License renewal requirements, business and service change notifications, and any regulatory developments that may impact the scope or conditions of the client’s higher-tier authorisation in Singapore. This continuity provides clients with proper information and a well-managed client throughout the entire life of the MPI License.
How We Approach Each Engagement
step 01
Engagement Scoping
We start by having a clear picture of the objective of the valuation, who will be dependent on the output, and the general environment in which the engagement will be. This involves establishing the standard of value to apply, the type of interest to be assessed and any special considerations that can impact the scope of work.
At this point, we collaborate closely with the client to agree on deliverables, timelines and the level of analysis that is needed. Regardless of whether the valuation is to be used in internal decision-making, transaction support, or a more formal reporting purpose, it is important to have early alignment to make the engagement efficient and purposeful.
Properly planned scoping phase enables us to tailor the engagement to the right level without introducing any unnecessary complexity, and ensures that all the factors are considered. This gives the analysis that follows a strong basis and helps to follow the same approach in a very clear and consistent manner.
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step 02
Business and Industry Analysis
We undertake an in-depth analysis of the business before using any valuation methodology to know how the business works and how it creates value. This involves an examination of the business model, source of revenue, cost base, customer base, positioning against the competitors and the experience and depth of the management team.
We also look at the strategic direction of the business, growth plans and opportunities, and operational constraints that can influence its future performance. This qualitative analysis is fundamental to the creation of a realistic and informed perspective of the business prior to the thorough financial analysis.
Simultaneously, we conduct industry and market research, including the analysis of the overall economic environment, trends in the sector, and similar transactions. It is this external view that assists in pegging the business valuation in the prevailing market conditions, and that conclusions are backed by reference points that can be observed.
step 03
Financial Analysis and Normalisation
We will conduct an in-depth analysis of the financial data of the company, such as past financial statements, management accounts, and future forecasts or business strategies. This would help us to evaluate the performance in the past, determine the trend underlying the performance, and determine the plausibility of the future.
Another important aspect of this step is the earnings normalisation, which entails the process of correcting non-recurring items, owner-specific expenses and any irregularities in accounting policy or presentation. Such changes are made to make sure that the financial performance is based on the underlying economics of the business on a consistent basis.
We also determine the quality and reliability of the financial information, question assumptions where necessary and make sure that all the adjustments are well justified and backed by clear explanations and evidence. Such rigorous methodology gives the conclusions on valuation that follow a solid financial basis.
step 04
Methodology: Choosing and Implementing
The valuation methodology selected is determined by the nature of the business, the use of the valuation, and the availability of market information. Various types of engagements and business nature might prefer different approaches and our valuation specialists in Australia are cautious in selecting the best approach in each scenario.
Some of the common methods are discounted cash flow analysis, earnings-based methodologies, and market benchmarking based on similar listed companies or transactions. Both methods provide an alternative understanding of value and their relative applicability is evaluated in the context of the engagement.
Practically, we tend to use several methodologies and compare the findings to come up with a well-grounded and balanced range of values. The reasons behind the methods chosen and the importance assigned to each are well explained to facilitate transparency and consistency in the conclusions.
step 05
Sensitivity Analysis and Concluded Value Range
The valuation conclusions are typically given as a range instead of a point estimate, indicating the uncertainty of forward-looking inputs and market assumptions. Such a method gives a more realistic value representation in various circumstances and enables more informed decision-making.
We take key assumptions such as revenue growth, profitability, and discount rates through structured sensitivity analysis to learn how the variation of these inputs can impact the valuation result. This aids in determining the most important value drivers and those assumptions that the conclusion is most sensitive to.
We allow clients and their advisers to know the variability of possible outcomes by providing a range with a comprehensive analysis. It is especially useful in the context of transactions and negotiations where knowledge of value limits can be used to make improved commercial decisions.
step 06
Reporting and Advisory Support
The end product is packaged to meet the target audience and purpose, be it internal stakeholders, external stakeholders or formal reporting needs. The report is designed in a manner that logically and accessibly presents the methodology, key assumptions, financial analysis, and the concluded value range.
We make sure that key value drivers, risks and sensitivities are shared in a manner that stakeholders can see not just the result but also the rationale. In Australia, our business valuation advisory is informed by the transparency, clarity, and practical relevance in all reporting.
In addition to the written report, we also offer continuous advisory services such as presentations to boards or management, answering of counterparty queries and help with further analysis as the transaction or decision-making process evolves. This continuity makes sure that clients are supported to the end.
Key Considerations in Major Payment Institution License Applications
- Payment Services Scope and Threshold Triggers: Entities are required to specify the payment services they are applying for the MPI License and to show that their proposed business will meet or exceed the transaction volume or stored value limits for each payment service category that classifies a payment institution as a Major Payment Institution in Singapore.
- Safeguarding Obligations and User Fund Protection: One of the most unique and operationally relevant parts of the MPI License compliance solution requirements is the safeguarding obligations, which mandate that user funds held in connection with certain payment services be protected through an approved safeguarding arrangement.
- Higher base capital requirements: Applicants should ensure that the payment institution fulfils the higher base capital requirement for the payment institution licensing tier (MPI) to which it applies, and can maintain sufficient financial resources to support the size and the continuing regulatory obligations of a Major Payment Institution in Singapore.
- Anti-Money Laundering and Compliance Programme: A fundamental Singapore MPI License requirement, which includes implementing Customer Due Diligence guidelines, transaction monitoring, reporting of suspicious transactions, as well as compliance governance procedures for all regulated payment activities.
- Technology Infrastructure and Operational Resilience: Given the systemic importance of the applicant's large-scale payment operations in Singapore, the adequacy of the applicant's technology systems, cybersecurity controls, operational resilience arrangements, and business continuity planning is evaluated during the MPI License registration process.
- Ongoing Obligations and Regulatory Reporting: MPI License holders have regulatory requirements that apply on an ongoing basis, such as reporting, compliance with safeguarding programme regulations, maintaining adequate capital, meeting conduct and user protection standards, and promptly notifying material changes to their business, services, and key personnel.
Major Payment Institution License Requirements
Applicants for the Major Payment Institution License in Singapore must satisfy more extensive eligibility conditions and documentation requirements than those applicable to the Standard Payment Institution tier. The key requirements applicable to the MPI licensing framework include:
Enhanced Minimum Base Capital:
Applicants must meet the higher minimum base capital thresholds applicable to the MPI licensing tier for each regulated payment service sought, providing clear evidence of adequate financial resources to support large-scale licensed payment operations in Singapore.
Safeguarding Obligations and User Fund Protection:
Applicants must establish approved safeguarding arrangements to protect user funds held in connection with certain payment services, demonstrating a fully designed and operationally ready safeguarding programme as a core MPI License compliance requirement.
Payment Services Scope and Threshold Triggers:
The application must clearly identify the regulated payment services for which MPI License authorisation is sought and demonstrate that the proposed business meets or exceeds the transaction volume or stored value thresholds that trigger the Major Payment Institution licensing tier.
Anti-Money Laundering Programme:
A comprehensive anti-money laundering and countering the financing of terrorism programme must be in place, covering customer due diligence, transaction monitoring, suspicious transaction reporting, and compliance governance calibrated to the higher volume and systemic significance of MPI-level operations.
Technology Infrastructure and Operational Resilience:
The adequacy of the entity’s technology systems, cybersecurity controls, operational resilience arrangements, and business continuity planning must be clearly demonstrated, reflecting the systemic importance of large-scale payment operations within Singapore’s payments ecosystem.
Ongoing Obligations and Regulatory Reporting:
Applicants must demonstrate readiness to meet the more extensive ongoing reporting, safeguarding, compliance monitoring, capital maintenance, and notification obligations applicable to the MPI License throughout the full period of the higher-tier authorisation.
Industries We Serve Across Singapore
Our Singaporean Major Payment Institution License services cater to a wide cross-section of the large-scale payments, fintech, and financial services ecosystem, such as:
- Large-Scale Fintech and Digital Payment Platforms: High-volume fintech companies and digital payment platforms that are looking to obtain authorisation as a Major Payment Institution (MPI) in Singapore, and need structured Major Payment Institution (MPI) License services that are well-suited for complex technology-driven and high-transaction-volume operating models.
- E-Money Issuers and Digital Wallet Operators at Scale: Where the stored value balances or transaction volume is at or above the Standard Payment Institution thresholds, Large Scale E-Money Issuers and Digital Wallet Operators are required to register for a Major Payment Institution License and design their safeguarding programme.
- Cross-Border and International Remittance Operators: A large volume of cross-border and international money transfer operators that need to be authorised under the MPI License, with detailed AML compliance and advisory services provided during the licensing process.
- Digital Payment Token Service Providers: Digital asset businesses and cryptocurrency operators that offer digital payment token services on a scale of more than one or two transactions, and who need to be registered for the Major Payment Institution License with a tailored approach to compliance, technology and safeguarding requirements, applicable within the framework of the Major Payment Institution License.
- Banking and Financial Institution Payment Arms: Banks, financial institutions and their payment arms that operate regulated payment services in Singapore with volumes that are subject to the Major Payment Institution License authorisation, and will have continuous set-up of the MPI License compliance solutions support for the duration of the Major Payment Institution License.
- Foreign Large Scale Payment Operators Entering Singapore: Overseas large-scale payment businesses and cross-border fintech operators looking to enter Singapore for a licensed presence to offer payment services at scale in the Singaporean and regional markets.
Illustrative Engagement Examples
Situation: A large-scale digital payments firm in Singapore wanted to register for a Major Payment Institution License to offer e-money issuance, domestic money transfer and merchant acquisition services beyond the Standard Payment Institution volume limits. The management team had significant operational experience but needed professional support from structured MPI licensing consultants to work through the Singapore MPI License requirements, establish the necessary safeguarding framework, and guide them through the application process to the eventual licence grant.
Action: We completed the detailed licensing readiness assessment (LRA) covering Singapore MPI License requirements for all three payment services applied for, found out the gaps in the firm’s safeguarding arrangements, anti-money laundering programme and capital adequacy documentation, and, in consultation with the management team, addressed each gap before the preparation of the application. We have developed all the required materials as part of our Major Payment Institution License service, collated them into a full submission package, and addressed any queries from the regulators via our rapid MPI License approval assistance process during the review period.
Outcome: The Major Payment Institution License is issued efficiently, enabling the business to expand its payment operations in Singapore in line with its commercial and operational plans. The client was provided with a comprehensive, well-documented compliance framework for all three licensed payment services, a complete MPI License compliance solution obligation, and guidance on future compliance obligations, including a complete safeguarding programme, providing a solid base for the client’s large-scale licensed payment service operations.
Situation: A payment institution with a Standard Payment Institution License in Singapore has witnessed an increase in transactions across its cross-border money transfer and e-money activities, necessitating an upgrade to a Major Payment Institution License. In addition, the existing SPI License had to be renewed during the transition period, and careful coordination between the upgrade application and the interim renewal was essential to ensure that licensed operations could continue throughout the process.
Action: Watched the payment institution’s current compliance standing and documentation, evaluated the additional requirements that resulted from the migration to the MPI licensing tier, and prepared a full application to upgrade the payment institution to meet the increased capital requirements, safeguarding obligations, and revised compliance framework documentation required under the Major Payment Institution License. The SPI interim License renewal was handled concurrently to avoid any lapse in the business’s licensed status during the transition period.
Outcome: The payment institution’s licensed operations did not cease during the process of obtaining the Major Payment Institution License, as the payment institution was also granted an SPI renewal during the transition period, providing continuity of coverage. The client was provided with a fully updated compliance and safeguarding framework appropriate to their new higher-tier authorisation, and a structured regulatory obligations calendar, to facilitate their ongoing Major Payment Institution License renewal and MPI License compliance solution management throughout the new licence term.
What Clients Receive
Each Major Payment Institution License engagement has a clear set of outputs, based on the type of payment services, the size of the business, and the licensing stage. Our MPI License services in Singapore deliver the following standard services:
- An organised licensing-readiness assessment report that compares the Singapore MPI License requirements with the applicant's position and pinpoints priority actions to be taken before filing for licensing.
- A comprehensive and structured package of a complete Major Payment Institution License application along with the necessary documents, safeguarding framework materials, compliance frameworks, technology assessments, personnel disclosures and supporting documents ready to the appropriate regulatory standard.
- A business plan and operational documentation package that is specific to the type of payment services that will be covered by the MPI License application, including the proposed payment activities, customer base, number of transactions, safeguarding to be put in place, applicant's revenue model and financial resources.
- A safeguarding framework document for the approved safeguarding methods, operational procedures and monitoring arrangements necessary to comply with the safeguarding obligations that apply to Major Payment Institution License holders in Singapore under the user fund protection obligations.
- An anti-money laundering and countering the financing of terrorism programme document that outlines policies, controls and corporate governance arrangements necessary to meet the compliance solutions obligations in the MPI License for all licensed payment services.
- Documentation on technology risk and cybersecurity aspects covering the applicant's technology infrastructure, operational resilience, cybersecurity risk management arrangements and business continuity planning requirements as stipulated in Singapore MPI License requirements.
- Documentation of: Major Payment Institution License renewal, including updated compliance policies, revised safeguarding arrangements, personnel disclosures and other documentation essential for timely and complete submission within the timeframe of the Major Payment Institution License.
- Continuous trusted MPI License provider advisory support to the authorisation period, including regulatory developments, safeguarding programme updates, service and operational changes notification, licence variations and any additional compliance/licensure matters during the authorisation period.
Frequently Asked Questions
Q1. What is a Major Payment Institution License, and what payment services does it cover?
A Major Payment Institution License in Singapore can be issued to a person or entity to enable it to undertake one or more payment services that fall within the scope of a regulated payment service and meet the transaction volume and stored value thresholds that exceed those of the Standard Payment Institution licensing tier. The types of payment services that are regulated or may be subject to regulation may include account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, e-money issuance, digital payment token services, and money-changing services. The MPI License framework is more rigorous than the SPI tier, particularly in its obligations to protect systems and consumers and its higher capital requirements, which are more relevant to high-volume payment transactions.
Q2. What are the Singapore MPI License requirements?
The Singapore MPI License requirements involve higher minimum base capital requirements when compared with the Standard Payment Institution tier, safeguarding arrangements with approved safeguards and standardisation for user funds held in relation to certain payment services, a comprehensive anti-money laundering programme, appropriate technology risk management, cyber security controls and fit and proper requirements for directors and key management personnel. Continuing duties include regular regulatory reporting, ensuring compliance through ongoing monitoring, maintaining capital, and reporting material modifications to the business or operations.
Q3. What are safeguarding obligations under the MPI License, and why do they matter?
User funds received by a payment institution for some payment services are subject to safeguarding obligations under the Major Payment Institution License, meaning the payment institution must use a recognised safeguarding method to protect those funds, such as placing their funds into an account with an approved financial institution or having an insurance or guarantee arrangement in place. One of the most unique aspects of the MPI License framework is the obligations it places on the user. These obligations are in place to ensure that users’ funds are protected if the payment institution goes bankrupt or otherwise fails to operate. To remain compliant with the MPI License, it is essential to set up and maintain a robust safeguarding programme.
Q4. What is the difference between a Major Payment Institution License and a Standard Payment Institution License?
The two types of licenses, namely, the Major Payment Institution License and the Standard Payment Institution License, both allow the license holder to engage in regulated payment services in Singapore, but with different thresholds of transactions and stored value amounts that qualify for each license type and different requirements and obligations that are imposed on the holder. The MPI tier is used when a payment institution’s activity exceeds the SPI level for one or more payment services and involves additional requirements, such as capital and safeguarding requirements. The tier(s) depend on the size of payments the business expects to process.
Q5. How long does the MPI License application process take in Singapore?
The timeframe for the Major Payment Institution License registration process in Singapore will depend on the completeness and quality of the application received, the nature and volume of the payment services applied for, and the number of applications being considered at the time the MFI is submitted. With higher documentation and compliance standards for the MPI tier, there’s even greater need to be prepared to achieve an efficient outcome. By being well-prepared and complete, an application reduces the risk of delay. Therefore professional MPI licensing consultants and structured, fast MPI License approval assistance are a worthwhile investment.
Q6. Can we apply for multiple payment services under a single MPI License application?
Yes. One Major Payment Institution License can apply to several regulated payment services, and the safeguarding and capital requirements for the application will be based on a combination of services sought. We provide MPI Licence Consulting Services that involve a thorough assessment and documentation process for all payment services within the scope of the application, ensuring each service is fully and properly covered and that the overall application is internally consistent across all services.
Q7. Do you provide Major Payment Institution License renewal services?
Yes. Our Major Payment Institution License renewal services involve comprehensive support to prepare and submit renewal applications for Singapore Major Payment Institutions (MPI), which includes reviewing their current compliance position and operational status, updating relevant documents and presentations to reflect any changes at the payment institution during the licence period, and preparing for the renewal submission to ensure that the higher tier authorisation is not disrupted while payment operations continue.
Q8. What ongoing obligations apply to Major Payment Institution License holders?
The major payment institutions (MPIs) licensed in Singapore have continuous obligations to hold the necessary enhanced capital, to implement the appropriate safeguarding measures for the funds held by users under the payment services that they provide, to follow the applicable conduct and user protection requirements and to submit periodic regulatory reports, as well as to notify the regulatory authority of material changes to the business, its services, its management and its safeguarding arrangements. Our trusted MPI License provider services provide compliance assistance for payment institutions to ensure that the same issues are addressed regularly throughout the duration of the MPI authorisation process.
Q9. Can foreign payment businesses apply for an MPI License in Singapore?
Yes. A Foreign Payment Business (FPB) or an overseas large-scale payment operator may apply for a Major Payment Institution (MPI) License in Singapore if the Applicant satisfies the requirements applicable to an MPI License Singapore and the Singapore entity is suitably structured, capitalised and governed. Our Major Payment Institution License services cover all aspects of the process for overseas applicants, from entity structuring and eligibility assessment to the submission of their application, the management of queries from the regulators, design of their safeguarding programme and post-licence compliance advisory.
Q10. How do I get started with a Major Payment Institution License application?
To schedule a preliminary consultation with our Major Payment Institution License advisory team, please reach out and we will review your proposed payment services, discuss the requirements of MPI License in Singapore for each payment activity, such as safeguarding and capital requirements, as well as discuss the process of preparing and submitting a complete MPI License application. We will assess your current readiness and what action is needed to move forward with pursuing the Major Payment Institution License registration process, providing you a starting point that is well-informed to enable you to engage in the Major Payment Institution License registration process with our professional MPI licensing consultants.
Q11. How do I obtain a Major Payment Institution License in Singapore?
To be granted a Major Payment Institution License in Singapore, you have to put together and submit a comprehensive application to the relevant regulatory body and show that your business meets all the requirements for payment services that will be licensed under the Singapore MPI License. This means satisfying increased capital needs, having an adequate safeguarding programme for user funds, a comprehensive anti-money laundering and countering the financing of terrorism programme, demonstrating that the technology and operational resilience arrangements are fit for purpose, and presenting a credible business plan. Our major payment institution licence application services cover all the stages from readiness to the grant of the licence.
Discuss Your Major Payment Institution License Requirement
From applying for a new Major Payment Institution License to upgrading from a Standard Payment Institution License and extending the scope of payment services authorized, to renewing your payment institution license or obtaining continued trusted MPI License provider services and support for your compliance and safeguarding requirements, our trusted licensing team in Singapore is here to help. Call us to understand your unique need and receive simple and effective advice to navigate the Major Payment Institution License application and compliance journey with ease in Singapore.
