Introduction
Recognising the new risks arising from technology, which is transforming payments, as well as from the merging of services that were previously regulated separately, the Payment Services Act (PSA) was passed into law on 14 January 2019. With the aim of providing for the licensing and regulation of payment service providers, the oversight of payment systems and connected matters under one consolidated act, the PSA seeks to combine the previous Payment Systems (Oversight) Act 2006 and the Money-Changing and Remittance Businesses Act 1979 into a forward looking and flexible framework. At the same time, the PSA aims to create an innovative environment for Financial Technology (FinTech) in Singapore.
In summary, the PSA comprises of two (2) parallel regulatory frameworks – (a) a designation regime which allows the Monetary Authority of Singapore (MAS) to designate significant payment systems which are widely used in Singapore or where operations have an impact on other payment systems in Singapore, to maintain financial stability of the payment services market, as well as ensure efficiency and competition in the financial system to the extent a payment…
