If fintech were a party, Singapore would be the preferred host for all partygoers. Over the past decade, Singapore has established itself as one of Asia’s leading fintech and payments hubs. Using a combination of clear regulations, business-friendly policies, and modern financial infrastructure, the country has become an attractive destination for startups, global firms, and investors alike.
The Monetary Authority of Singapore (MAS) has played a major role in the success story. By enabling the FinTech Regulatory Sandbox and collaborative platform for entrepreneurs, MAS is opening up innovation while providing a way to manage risk in the ecosystem. Singapore’s geographical position in the region offers a great launchpad for businesses that expect to scale outbound to other markets in Southeast Asia.
Understanding the Payment Services Act 2019 (PSA)
Think of the Payment Services Act 2019 (PSA) as Singapore’s most comprehensive guide for transferring money – a traditional bank transfer or a brand new digital token. Since it came into effect in January 2020, it has been the law that keeps payment services running smoothly, safely, and above all, legally. It’s considered Singapore’s main rulebook for regulating payment services.
The PSA bundles all the previously scattered rules into one robust framework. It covers everything from old-school domestic and cross-border transfers to modern innovations like e-wallets, digital tokens, and merchant payment solutions. No more guessing games for companies — the rules are spelled out.
Under this law, if you’re a payment provider, you need the right license from MAS before doing any regulated business.
The idea is simple: make sure businesses operate safely, customers feel confident, and the ecosystem stays stable — while still letting companies innovate. It is not just words written in the rulebook; if a company decides to bypass the rules, MAS can step in with fines, license suspensions, or any other legal consequences. So it is not a suggestion — it is the law.
The Growing Need for Regulatory Clarity in the Payments Space
Before the Payment Services Act (PSA), the payments world in Singapore was a little like a busy street with no traffic lights. Companies offering e-wallets, digital tokens, or cross-border payments had to figure out the rules as they went along — and sometimes got it wrong. That confusion could slow down growth, make scaling tricky, and even put customers’ money at risk.
The PSA has fundamentally transformed the payments landscape in Singapore. It ensures transparency with the relevant regulatory regime and the type of license they require, the activities allowed under that license and the operational and compliance obligations.
For the industry, the PSA and MPI framework means innovating and developing products is a total stress-free exercise. You can know what is expected and the rules you must adhere to!
For businesses, the PSA and MPI framework means you can innovate and expand with confidence, knowing exactly what is expected and what rules must be followed. This helps in removing uncertainty and ensures that scaling operations won’t inadvertently lead to any regulatory breaches.
For customers, it gives them trust and peace of mind while using payment services, knowing their funds are safeguarded, transactions are secured, and the service provider is operating with discernible regulatory oversight. To sum up, the framework benefits everyone — providing companies an opportunity to grow and, at the same time, safeguarding and reassuring users.
In summary, the PSA has ensured the payments space is no longer chaotic, a free-for-all. The payments space is now safer, predictable, and still allows for innovation, which is a good outcome for companies and an even better outcome for users.
Why the MPI License Is Essential for Scaling Payment Businesses
For any fintech or payment company in Singapore, the MPI license Singapore is more than just a legal requirement — it is a gateway to growth. A Standard Payment Institution (SPI) license in Singapore, regulated under the Payment Services Act, allows businesses to conduct multiple payment services, but with specific transaction volume and e-money issuance thresholds.
Consider the MPI license as the bridge from a small-scale operation to a fully scalable, regulated payment business. With this license, companies can expand their payment services comprehensively — including cross-border transfers, merchant acquisition, e-money issuance, and digital token operations. Without an MPI, businesses face limitations on transaction volumes
Holding an MPI license signals credibility. Investors, partners, and customers see that your company is serious, well-regulated, and capable of handling larger operations. But it is not just a free pass — the MAS license comes with stricter requirements, including higher capital, robust compliance measures, and mandatory safeguards for customer funds.
What Is a Major Payment Institution (MPI) License?
A major payment institution (MPI) license is considered a regulatory authorization under the Payment Services Act 2019 (PSA), which allows every payment service provider in Singapore to operate at a larger scale in line with strict legal and operational compliance standards. For those wondering, MPI, as per Singapore statutes, refers specifically to a provider whose transaction volumes or stored customer funds exceed the thresholds set for a Standard Payment Institution (SPI).
Definition and Function under the Payment Services Act 2019
An MPI license is available to businesses that wish to provide the full range of payment services that include domestic and cross-border transfers, issuing e-money, digital payment token services and providing merchant acquisition services. A Standard Payment Institution (SPI) license in Singapore, regulated under the Payment Services Act, allows businesses to conduct multiple payment services, but with specific transaction volume and e-money issuance thresholds. These thresholds are: a monthly transaction volume of S$3 million or less for any single activity, or S$6 million or less for two or more activity types. Additionally, the daily outstanding e-money for e-money issuance services cannot exceed S$5 million.
Regulated by the Monetary Authority of Singapore (MAS)
MAS’s payment license framework is designed to ensure that MPI license holders maintain all the necessary capital, governance and compliance requirements while ensuring that the customers’ money remains protected. The MAS also has to monitor ongoing compliance, evaluate risk management that is in place, and ensure compliance with legal obligations, such as anti-money laundering and countering financing of terrorism (AML/CFT).
Difference Between SPI and MPI
- SPI License: for smaller operators with caps on transactions and stored funds.
- MPI License: for larger operators that exceed SPI caps and can have no caps on transaction volumes, but require more stringent governance, capital requirements, and protection of customers’ money.
In conclusion, obtaining a Major Payment Institution is necessary to scale payment institutions in Singapore. An MPI will provide a compliant process to provide services, protection for customers, as well as provide credibility to investors and partners, all while maintaining full regulatory compliance with MAS.
Payment Services Covered Under an MPI License
To summarize everything that you can do with a Major Payment Institution (MPI) license in Singapore, it is flexible. You are not required to provide every service you can imagine. Instead, you can offer any one, some, or all of the regulated categories to suit your own business model.
Here are the main payment services covered under an MPI license:
- Account issuance – Opening and managing accounts for your customers.
- Domestic money transfers – Sending money safely within Singapore.
- Cross-border money transfers – Moving funds internationally (basically, your cross-border transfer license).
- Merchant acquisition – Helping businesses accept payments from customers.
- E-money issuance means you’re creating digital money or stored-value instruments.
- Digital payment token services (crypto) means you’re buying, selling or transferring cryptocurrencies under the MAS crypto license.
- Money-changing services mean you are exchanging currency, whether that is in cash or digital currency equivalents.
The MPI license allows businesses to select one or more of these services, so you can scale operations safely and legally, while remaining compliant with MAS regulations. In other words, this is your shortcut to growing a fintech business in Singapore without running into regulatory issues.
Who Needs an MPI License in Singapore?
If you’re wondering “who needs an MPI license?”, the answer is straightforward: any business that handles large-scale payment operations in Singapore. Essentially, if your transactions or stored funds exceed the limits set for smaller operators, you’ll need an MPI license rather than a Standard Payment Institution (SPI) license.
Key businesses that typically require an MPI license include:
- Fintech companies providing large-scale payment services – If you handle high transaction volumes or a rapidly increasing number of customers. This ensures your operations are regulated, can grow, and comply with the requirements of the Monetary Authority of Singapore (MAS).
- Crypto exchanges and wallet providers – Any business that trades, holds, or transacts in digital tokens must have an MPI license as a digital token service provider. This ensures that your operations are regulated, customer assets are protected, and you comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations.
- Remittance and money transfer business – Any business that is transferring money, whether domestically or internationally, may need MPI authorisation if you are exceeding the SPI limits of transfers. This ensures cross-border payments are secure, trackable and in accordance with Singapore’s financial regulations.
- E-wallets and stored-value facilities – Any e-wallets that hold customer balances or floating funds of more than S$5 million are required to have an MPI license. This ensures customer funds are protected, risk is mitigated, and customer faith is maintained as the customer scales.
MPI license provides substantial strategic benefits to fintech enterprises. It enables companies to offer broader service offerings, move into new markets, and create partnerships with banks, payment providers and international remittance networks. Moreover, MPI holders benefit from improved credibility that allows investors to more easily trust their intentions, corporate customers to seek engagement, and end-users to feel confident in onboarding as trusted customers.
On the operations side, the MPI license represents a willingness of fintechs to implement strong governance frameworks, risk management and operational controls from the start. This helps mitigate financial crime and system failures that could be damaging to them in the long run.
Key Requirements for MPI License Applicants
Obtaining a Major Payment Institution (MPI) license in Singapore is more than ticking regulatory boxes — it demonstrates that your business is responsible, serious, and ready to operate at scale. MAS expects applicants to meet certain standards for a reasonable business proposition. Here’s an overview:
1. Financial Requirements
- Base capital of S$250,000 or more – acts as a financial cushion to ensure the business can operate safely.
- Security deposit – varies depending on the payment services offered, safeguarding customers’ funds.
2. Governance & AML/CFT
- Fit and proper directors and shareholders – key personnel must demonstrate integrity, competence, and experience.
- Robust AML/CFT compliance policies – systems must prevent money laundering and terrorism financing, aligned with Singapore AML compliance standards.
- Risk management and cybersecurity policies – frameworks should protect against operational risks, fraud, and cyber threats.
3. Local Requirements
- Locally incorporated company or Singapore branch – MAS requires legal presence in Singapore.
- At least one resident executive director ensures effective local governance and accountability.
Compliance with these requirements forms part of the MAS licensing obligations and is a critical element of your fintech license checklist. An MPI license signals to customers, partners, and investors that your business is well-structured, compliant, and ready to grow in Singapore’s competitive payments landscape.
Step-by-Step Checklist: MPI License Application in Singapore
Applying for an MPI license may feel overwhelming, but breaking it down step by step makes the process manageable.
1. Determine your business scope and applicable services
Identify the types of payment services your business will provide. This determines the license category and supporting documentation needed.
2. Incorporate a company in Singapore
MPI applicants must have a locally incorporated company or a Singapore branch to meet MAS requirements.
3. Ensure fit-and-proper directors and local presence
- At least one executive director must be a Singapore resident.
- Directors and shareholders must demonstrate integrity, experience, and competence.
4. Complete and submit the required documents
Typical documentation includes:
- Business plan – outlining services and stakeholder engagement.
- Compliance manuals – detailing AML/CFT and operational policies.
- Risk assessments – covering financial, operational, and cybersecurity risks.
- Financial projections – showing stable capital adequacy.
- Proof of base capital and security deposits.
5. Internal review / pre-check
Conduct a final internal review to ensure completeness and accuracy, reducing MAS queries and speeding up approval.
6. Apply via MAS Online Portal (MyMAS)
Submit your application online with all supporting documents.
7. MAS assessment and correspondence
MAS reviews your application, may request additional information, clarifications, interviews, or site visits to ensure compliance with Singapore payment license requirements.
8. Approval and ongoing compliance obligations
Once approved, the MPI license comes with ongoing reporting, audits, AML/CFT compliance, risk management, and operational obligations.
Timelines and Costs for MPI License Application
Estimated Timeline: 4–6 months
Includes:
- Review of submitted documents
- Assessment of fit-and-proper criteria for directors and shareholders
- Evaluation of risk management and AML/CFT frameworks
- MAS follow-ups, clarifications, or site visits
Application Fee:
S$1,000–S$10,000, depending on services applied for. Payable upon submission and non-refundable.
Ongoing Compliance Costs:
- Audits and reporting under the PSA
- Legal and regulatory advisory
- KYC/AML/CFT systems for monitoring and reporting suspicious transactions
- Operational risk management and cybersecurity
Proper planning and budgeting for these costs ensures full MAS compliance, protects customer funds, and allows your business to scale confidently in Singapore’s fintech ecosystem.
Compliance and Continuing Regulatory Obligations
Holding an MPI license is a milestone, but ongoing compliance is critical:
1. AML/CFT Reporting and Audits
- Monitor transactions to prevent money laundering or terrorism financing
- Send regular updates to MAS and report suspicious activities
- Maintain organized records for audits
2. Cybersecurity and Technology Risks
- Protect customer funds and data
- Conduct routine system checks and tests
- Implement response plans for incidents and update systems regularly
3. MAS Notifications and Returns
- Notify MAS of significant changes (directors, shareholders, key personnel)
- File periodic returns and disclose risks, fees, and terms transparently
- Maintain a robust complaints-handling process
4. Risk Management and Internal Controls
- Maintain frameworks for operational, financial, legal, and reputational risks
- Regularly review policies for MAS compliance
- Keep internal controls strong to ensure business continuity
5. Staff Awareness and Training
- Continuous training on AML/CFT, cybersecurity, and operational risks
- Ensure staff understand responsibilities supporting MAS compliance
These measures protect customers, the business, and its reputation, establishing a trusted, secure, and scalable operation within Singapore’s fintech community.
Advantages of Holding an MPI License
Holding an MPI license delivers real strategic benefits:
1. Scale Locally and Internationally
Allows businesses to process higher volumes, offer multiple services, and expand without regulatory barriers.
2. Enhance Credibility and Investor Confidence
MAS licensing signals reliability, boosting trust with investors, partners, and customers.
3. Access to Local and Regional Financial Markets
Facilitates participation in Singapore’s payment ecosystem, including banks, merchant networks, and cross-border transactions.
4. Enable Crypto-Related Service Offerings
Certain digital payment token services (crypto) are permitted, providing legal paths to digital wallets, token trading, or custody services.
In short, an MPI license is more than compliance — it is a strategic tool for scaling, building trust, and expanding reach in Singapore’s fast-moving fintech market.
Common Challenges and How to Overcome Them
The regulatory paperwork is no joke. The MAS application process is dense, and even small gaps or inconsistencies can set you back months. It is not about just filling in forms; MAS expects precision, and they’ll send it back if anything feels incomplete or unclear.
The second big challenge is AML compliance. MAS takes this seriously — you can’t just say you’ll set it up later. They want to see a functioning framework: clear policies, transaction monitoring tools, and reporting processes that already look operational. This is where a lot of fintechs get tripped up, thinking they can patch it together after the license is issued.
Then there’s the issue of local presence. Singapore doesn’t want “letterbox” entities. You’ll need to appoint resident directors who actually know the business and, ideally, build a small operational footprint locally. Without that, MAS will view the application as hollow.
And finally, holding the license isn’t the end of the road — it is an ongoing relationship. MAS will expect regular reporting, audits, and evidence that you’re keeping up with regulatory changes. If you’re reactive instead of proactive, that’s where problems start.
How do you get around all this? Treat the process like building long-term infrastructure. Invest in compliance early, bring in people who understand the Singapore regulatory landscape, and don’t think of MAS as a box-ticker — they’re a regulator you’ll be working with for the life of your business.
Conclusion
Getting an MPI license might sound like jumping through a mountain of red tape, but it is really more like unlocking the premium level of Singapore’s fintech game. With it, you’re no longer just “another startup,” you’re a serious player that banks, investors, and partners actually trust.
For fintech and crypto firms, the license isn’t just a piece of paper — it is a ticket to grow bigger, faster, and smarter. You can scale your services, reach new markets, and even dabble in crypto-related offerings without constantly looking over your shoulder.
You can expand your services, grow new markets, and even dip your toe into crypto offerings without a nagging sense of uncertainty.
But of course, you do not want to get caught out because while an MPI license is a regulatory requirement, it is also a strategic milestone. When you prepare early, allow time to check compliance frameworks, and build the requisite local presence, you set your business up for long-term comfort and success in Singapore’s fintech environment.
FAQ
1. Difference between MPI and SPI licenses in Singapore?
SPI is for smaller-scale providers (≤ S$3m per service / ≤ S$6m for multiple / ≤ S$5m e-money float). MPI is for larger-scale providers exceeding these thresholds, with stricter capital and compliance requirements.
2. How long does it take to get an MPI license?
Typically 6–12 months, depending on application quality and MAS review.
3. Can crypto exchanges apply for an MPI license?
Yes. Exchanges offering digital payment token services fall under the PSA and can apply.
4. What are the capital requirements for an MPI license?
MPI holders must maintain a base capital of at least S$250,000, with additional requirements depending on risk profile.
5. Is the MPI license mandatory for cross-border remittance providers?
Yes, if transaction volumes exceed SPI thresholds. Otherwise, an SPI license is sufficient.