Office Address

123/A, Miranda City Likaoli Prikano, Dope

Phone Number

+0989 7876 9865 9

+(090) 8765 86543 85

Email Address

info@example.com

example.mail@hum.com

Standard Payment Institution License

Activities Covered Under the Standard Payment Institution (SPI) License in Singapore

Fintech means financial operations using technologies. This sector is broad and houses many categories, including the Standard Payment Institution. It is also a general area that requires the Singapore Fintech Payment Institute License. Some of the activities that require this permit include

  • 1. Domestic money transfer service providers
  • 2. Cross-border money transfer providers, including the outbound and inbound remittance services
  • 3. Payment account services
  • 4. Merchant-acquisition payment transactions providers
  • 5. E-money service providers
  • 6. Cryptocurrency
  • 7. Money-changing service providers

You should ensure that you have the standard Payment Institute license if your business deals with any of the activities above.

Singapore Fintech:  Fintech Major Payment Institution License Service

Fintech refers to the process of running financial operations using technological solutions. It is a broad sector that features several categories where various sectors require different permits. One of the most popular sectors is the Fintech Major Payment Institution License. This permit is quite similar to the Standard Payment Institution license in its requirements and operation. However, the significant difference is that the Major Payment Institution (MPI) License has no limit. Also, it has stricter compliance requirements, and the minimum base capital requirement is higher. 

Key Features Defining the Standard Payment Institution (SPI) License in Singapore

Note that the Standard Payment Institutions licensing is under Singapore Payment Service Act, and some restrictions fall under this category. The three conditions that qualify a company to apply for this permit including:

  • Standard monthly transactions of s$3 million for the payment service providers excluding e-money and money-changing businesses
  • S$6 million as the monthly transactions for two or more payment services providers excluding money-changing services and e-money
  • S$5 million as the daily e-money

If your daily activities cross the limits above, you must upgrade to a Major Payment Institution licensing

Why is it important to have this license?

Suitable for Startups, FinTech, Financial services related activities

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Convenience

With this license, you can provide all the payment services above. This enables a wide range of payment solutions under a single regulatory umbrella.

Suitable for Payment Services

The Standard Payment Licensing is essential when businesses in Singapore provide payment services. This legitimizes your payment service provider status and builds trust.

Avoid non-compliance and business disruption

Singapore is strict with business compliance, and this licensing guarantees you an easy time with your business and customers when providing payment services. Operating without the necessary Singapore Fintech Licensing can lead to severe penalties and business interruptions. Adhering to MAS Payment Institution Requirements ensures legal and operational stability.

What are the Requirements ?

When applying for the Standard Payment Institutions License applicants should take care of the following issues

Fit and Proper Requirement

The applicant must meet all the MAS requirements. You must ensure that the partners and staff satisfy the Fit and Proper Guidelines

Staff Requirement

Key individuals in the company must have adequate and impeccable experience in relevant fields and Education to match. Ensure that they have the experiences and educational background to control the company effectively.

Minimum Base Capital

An SPI (Standard Payment Institute) License applicant must meet the minimum base capital set by MAS. Note that the applicant must ensure that the business maintains the standard base capital even after acquiring the license

Physical Office

Every business under the Standard Payment Institute License must have a registered physical office where MAS can address all their notices. Also, you must have at least one employee working in the office

Compliance Program

Every M I P License applicant must adhere to a compliance program and ensure arrangements that match their operations' intensity and nature are provided. The responsibility of this rests on the shoulders of the company's key individuals even if the operatives of the program are other staff.

Technology Risk Management

: Business involves using technologies to solve financial issues, and as much as it has its advantages, it is prone to several risks. As a result, MAS requires that every applicant must have technology risk management plans to protect the customers and the business

Audit Requirements

Every applicant must submit plans on how he hopes to conduct independent auditing to assess the performance of the business

General Compliance

As you apply for this license, MAS requires you to have stable compliance arrangements to ensure that the business follows the set-up regulatory framework. Note that the key individuals in the company play a primary role in business compliance.

Annual Compliance

MAS requires every company under the SIP License to file monthly financial returns. Also, they have to submit half-yearly returns and yearly returns. If you are having trouble with compliance, you can chat with us today, and we learn the necessary guidelines.

Understanding the Processing Time for Your Standard Payment Institution (SPI) License Application in Singapore

You are probably questioning how long it will take to finalize the SPI license application process in Singapore. Note that the application preparation time ranges between four to six weeks. After sending the application, MAS often takes four months to review the details and give you their feedback on the matter. However, it may take longer if your business model is challenging or if your application form is incomplete.

Therefore, as you apply for the SIP license, it is crucial to seek help from professionals. Lucky for you, our program has a team of experts who are ready to assist you if you partner with us. Also, ensure that you send a straightforward and complete application to potentially expedite the Singapore Fintech Licensing timeline.

Standard Payment Institution License Fees in Singapore

Licensee holding a Standard Payment Institution License in Singapore have to pay a yearly license fee of S$0 and S$1500 for companies under account issuance and money-changing payment services. Companies under all the other payment services must pay license fees of S$8000. Understanding these MAS Payment Institution Requirements regarding fees is essential for budgeting.

Annual Compliance of Standard Payment Institution (SPI) License Holders in Singapore

Singapore is among the best financial operation hub globally because of the high-class regulatory framework that guides businesses in running their daily operations. MAS requires every company under the SPI License to file monthly financial returns. Also, they have to submit half-yearly returns and yearly returns. If you are having trouble with compliance under the Singapore Payment Services Act, you can chat with us today, and we learn the necessary guidelines to ensure you meet all MAS Payment Institution Requirements for ongoing Singapore Fintech Licensing.

Key Documents for Your Singapore SPI License Application

Singapore’s law requires SSL applicants to submit detailed documentation for getting a Standard Payment Institution (SPI) License because this allows them to initiate PSA-authorized payment services. For a Standard Payment Institution license from the Monetary Authority of Singapore you need to present a detailed assessment of your business operations along with financial stability information and operational structure and compliance requirements. The following contains a classified list of necessary documentation that will support your Singapore Fintech Licensing process despite specific circumstances.

  • Corporate Documents ACRA Certificate of Incorporation, Business Profile, M&AA. The corporate shareholder requirements include group framework (when applicable) and information about shareholders along with their incorporation papers.

  • The Business & Operations Plan contains a full business strategy accompanied by technology framework information and security standards and Customer Due Diligence/Know Your Customer policies and transaction oversight protocols combined with complaint resolution approaches and the listing of outsourced functions (if any), as well as a Business Continuity Plan (BCP).

  • The financial information includes projected financial reports spanning three years together with capital sources and audited financial statements along with evidence of reaching minimum base capital thresholds.

  • Management & Personnel Details include CVs of directors and key officers together with passport copies and declarations of fitness and propriety and organizational charts and staff training program compliance and AML/CFT components.

  • Compliance manual along with legal opinions (when necessary) and PDPA data protection policy in addition to signed declarations and undertakings form part of the legal and compliance documentation.

     

The Standard Payment Institution (SPI) Application Process in Singapore

In Singapore, the Payment Services Act (PSA) regulates the provision of payment services. The Standard Payment Institution (SPI) license is one of the licenses available under the PSA and allows licensees to provide specific payment services. Here is a step-by-step breakdown of the SPI license application process:

  • Determine eligibility : The company must first determine if they meet the eligibility criteria set out by the MAS for SPI license registration. This includes requirements such as having a permanent place of business in Singapore, a competent and fit-and-proper management team, and a minimum paid-up capital of S$100,000.
  • Prepare the application documents : Have the required documents ready, including the application form, business plan, compliance manual, financial projections, and other relevant information for your Singapore Fintech Licensing application.
  • Submit the application : Applications may be submitted through the MAS’ electronic licensing system.
  • Review by MAS : The MAS will review the application. The authority may also request additional information or clarification and conduct on-site inspections and interviews with key personnel as part of their due diligence for granting a Payment Institution License.
  • Approval or Rejection : After reviewing the application, the MAS will either approve or reject the application. The MAS can approve or reject the application, so it is good to be open-minded. If the application is rejected, the company can appeal the decision.

Remember that the MAS may also revoke or suspend the license if the company fails to comply with its requirements or if the MAS determines the company is no longer fit and proper to operate as an SPI for whatever reason.

Understanding the Compliance Manual Requirement for Your Standard Payment Institution (SPI) License in Singapore

A compliance manual is a document that outlines the policies and procedures that a company must follow to comply with applicable laws and regulations. The manual guides how the company should conduct its business activities to avoid regulatory violations under the Singapore Payment Services Act.

  • Specific to Business Needs : To get a compliance manual for your SPI license application, a company can either develop one in-house or seek the assistance of a compliance consultant or legal professional. The manual should be reviewed and updated regularly to reflect changes in regulations and business practices related to your Payment Institution License.
  • Implementation : If the company seeks the assistance of a compliance consultant or legal professional, it will work with the company to develop one that meets the regulatory requirements. The consultant or legal professional will also provide guidance on how the company can implement the compliance manual and integrate it into its business practices to adhere to MAS Payment Institution Requirements.

A compliance manual is an essential document for any company operating in a regulated industry, such as financial services. The manual helps a company comply with regulatory requirements, which helps maintain the trust of its clients and stakeholders within the Singapore Fintech ecosystem.

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    ASKED QUESTIONS

    FAQs on Standard Payment Institution License

    The annual fee depends on the activities that your business is carrying out under the license. The account issuance service and money-changing service require a yearly license fee of S$0 and S$1,500, respectively. However, all the other activities require an annual fee of $5000.

    Every business that provides payment services and meets the Payment Institute Act restrictions must acquire the SPI license.

    MAS is strict with its regulatory framework and requires that every business meet the set rules. Otherwise, the individuals face harsh punishments, including imprisonment, fines, and etc.

    MAS has some requirements for the applicants, including:(a) They must be a local company or a foreign company under Singapore’s registration (b) Applicant must include a permanent physical office (c) Minimum base capital of S$100,000 and (d) One of the key individuals like executive director must be Singapore-based

    After the SIP license’s approval, it is valid unless (a) MAS revokes the license (b) Your business is bankrupt according to the PS Act (c) If the business owner notify MAS of seizing to undertake the payment services