The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced that a new entity will be set up to consolidate the administration and governance of the city-state’s national payment schemes in a concerted effort to “position these schemes for the next stage of growth.”
The entity will reportedly collaborate with MAS on the development of Singapore’s national payments strategy, thus helping with “ensuring a safe, efficient and innovative payments infrastructure.”
Currently, the various national payment schemes, such as Fast And Secure Transfers (FAST), Inter-bank GIRO System, PayNow, and Singapore Quick Response Code (SGQR), are being used “by consumers and businesses in their daily activities, offering a range of options for domestic and cross-border payments.”
These schemes are reportedly administered and governed by specific scheme administrators: Singapore Clearing House Association (SCHA), ABS, MAS, and Infocomm Media Development Authority (IMDA).
The consolidation of the administration and governance of these schemes under a single entity will aim to enhance coordination and decision-making across payment schemes, “enabling financial institutions and payment service providers to better harness opportunities in global payments and spur further growth and innovation in Singapore’s payments sector.”
The entity will reportedly be governed by senior representatives from MAS and the financial services industry, who will aim to “provide strategic direction to the entity’s management team.”
In addition to this, industry committees will be formed “under the new entity to engage banks, payment services providers, and key user groups such as industry and business associations to support strategy development.”
As clarified in the update from MAS, there will be no changes to the operations and scheme rules of the national payment schemes as they “are consolidated to the new entity.”
More details on the actual entity name, governance structure s well as board composition will “be announced later this year.”
National payment schemes are said to be a key foundational layer of Singapore’s digital economy, “supporting businesses and financial market participants with faster, more convenient and cost-effective payments.”
They aim to support greater cross-border transaction flows “through connectivity with other global platforms.”
Their national payment schemes need to evolve “to meet new and emerging payment needs of consumers and businesses, and the consolidation of these schemes under a single entity will foster more effective and inclusive payment solutions by banks and PSPs participating in such schemes.”
Chia Der Jiun, Managing Director of MAS, said:
“Consolidating the administrative and governance responsibilities of all national payment schemes under a single entity will strengthen the governance of these schemes and contribute towards greater payments resilience and innovation.”
Piyush Gupta, ABS Chairman, said:
“ABS and member banks look forward to working closely with the industry to achieve Singapore’s goal as a Smart Financial Centre. The new payments entity will enable us to rationalise our various payment rails, as well as provide a springboard to leverage technology in imagining the future of payments.”
Jacqueline Loh, Chairman of SCHA and Deputy Managing Director (Corporate Development) of MAS, said:
“By channelling the payments industry’s resources and expertise into a single entity, this initiative will strengthen existing capabilities in the oversight of resilience and safety of the payment schemes and ensure consistent implementation of national e-payment strategies across the various payment schemes. SCHA is committed to see through the smooth transition to the new entity.”
Leong Der Yao, Assistant Chief Executive (Sectoral Transformation) of IMDA, said:
“IMDA and MAS have jointly developed and advanced the SGQR scheme since 2017, making it one of Singapore’s most widely adopted payment systems. The transfer of SGQR scheme administration and governance, along with other payment schemes, to the new single entity will streamline the local payments landscape, delivering a more seamless experience for businesses and consumers. This transition will also open doors for greater collaborations with international digital wallets and financial institutions.”