MAS and ABS to Establish New Payments Entity to Position National Payment Schemes for Next Stage of Growth
JOINT MEDIA RELEASE
MAS and ABS to Establish New Payments
Entity to Position National Payment
Schemes for Next Stage of
Growth
Singapore, 12 February 2025… The Monetary Authority of
Singapore (MAS) and the Association of Banks in Singapore (ABS) today
jointly announced that a new entity will be set up to consolidate the
administration and governance of Singapore’s national payment
schemes1 to position these schemes for the next stage of growth. The
entity will also collaborate with MAS on the development of
Singapore’s national payments strategy, ensuring a safe, efficient
and innovative payments infrastructure.
Today, our national
payment schemes2, such as Fast And Secure Transfers (FAST), Inter- 2
bank GIRO System, PayNow and Singapore Quick Response Code (SGQR), are
widely used by consumers and businesses in their daily activities,
offering a broad range of options for domestic and cross-border
payments. These schemes are administered and governed by specific
scheme administrators, namely, 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 enhance coordination and decision-making
across national payment schemes, enabling our financial institutions
and payment service providers to better harness opportunities in
global payments and spur further growth and innovation in Singapore’s
payments sector.
3 The new entity will be governed by senior
representatives from MAS and the financial services industry, who
will provide strategic direction to the entity’s management team.
Additionally, 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. There will be no changes to the operations and scheme
rules
1 Payment schemes are generally enabled through a
number of national payment networks, each governed by an agreed set
of rules and procedures. These rules determine, among others, the
access of participants to the network, pricing for using the network
and the operational and security standards that these participants are
expected to maintain in using the network and in providing payment
services to their customers. The participants and the set of rules
and procedures for each payment network are referred to as a payment
scheme. The entities administrating and governing these payment
schemes are known as scheme administrators. Similar to existing
scheme administrators, the new entity will not be regulated as it is
not involved in the day-to-day operations of payment
schemes.
2 Please refer to the Annex for the full list of
national payment schemes and their respective scheme
administrators.
of the national payment schemes as they are
consolidated to the new entity. Further details on the entity name,
governance structure and board composition will be announced later
this year.
4 National payment schemes are a key foundational
layer of Singapore’s digital economy, supporting businesses and
financial market participants with faster, more convenient and cost-
effective payments. They also promote greater cross-border transaction
flows through connectivity with other global platforms. Our 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 both banks and payment service providers participating in
these schemes.
5 Mr 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. ”
Mr
Piyush Gupta, ABS Chairman, said, “ABS and member banks look forward
to 6 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. ”
7 Ms 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. ”
8 Mr 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. ”
***
Annex
List of National Payment Schemes and Respective
Scheme Administrators
Payment Schemes Fast And Secure
Transfers Inter-bank GIRO System Singapore Dollar Cheque Clearing
System US Dollar Cheque Clearing System PayNow eGIRO Electronic
Deferred Payment Singapore Quick Response Code
Current
Scheme Administrators
SCHA
ABS
MAS/IMDA
About the Monetary Authority of Singapore The Monetary
Authority of Singapore (MAS) is Singapore’s central bank and
integrated financial regulator. As a central bank, MAS promotes
sustained, non-inflationary economic growth through the conduct of
monetary policy and close macroeconomic surveillance and analysis. It
manages Singapore’s exchange rate, official foreign reserves, and
liquidity in the banking sector. As an integrated financial
supervisor, MAS fosters a sound financial services sector through its
prudential oversight of all financial institutions in Singapore –
banks, insurers, capital market intermediaries, financial advisors
and financial market infrastructures.
It is also responsible
for well-functioning financial markets, sound conduct, and investor
education. MAS also works with the financial industry to promote
Singapore as a dynamic international financial centre. It facilitates
the development of infrastructure, adoption of technology, and
upgrading of skills in the financial industry.
About The
Association of Banks in Singapore The Association of Banks in
Singapore (ABS) plays an active role in promoting and representing
the interests of the banking community in Singapore. In doing so, ABS
works closely with the relevant government authorities towards the
development of a sound financial system in Singapore. Since its
establishment in 1973, ABS has promoted common understanding among
its members and projected a unifying voice on banking issues. It has
brought its members closer together through various guidelines and
banking practices as well as the support of projects of mutual
benefit to face the challenges of the financial and banking community
in Singapore. Today, ABS has a membership of more than 150 local and
foreign banks.
For media queries, please contact:
The
Association of Banks in Singapore Ong-Ang Ai Boon (Mrs. ) Director
Tel: 6224 4300 Email: banks@abs. org. sg
Monetary Authority of
Singapore Davelle Sim (Ms) Assistant Director (Corporate
Communications) Tel: 6422 5564 Email: davelle_sim@mas. gov. sg