The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) jointly announced on 12 February 2025 that a new entity will be set up to consolidate the administration and governance of Singapore’s national payment schemes, which are widely used by consumers and businesses daily.
Currently, the national payment schemes, such as Fast And Secure Transfers (FAST), Inter-bank GIRO System, PayNow and Singapore Quick Response Code (SGQR), are administered and governed by specific scheme administrators, namely, the 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, 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 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 service providers and key user groups, including industry and business associations, to support strategy development. The new entity will also collaborate with MAS on the development of Singapore’s national payments strategy, ensuring a safe, efficient and innovative payments infrastructure.
There will be no changes to the operations and scheme rules of the national payment schemes as they are consolidated into the new entity. Further details on the entity’s name, governance structure and board composition will be announced later in 2025.
The consolidation of the national payment schemes under the new entity will position them for the next stage of growth, as they need to evolve to meet the new and emerging payment needs of consumers and businesses. The new entity will also foster more effective and inclusive payment solutions by both banks and payment service providers participating in these schemes, and promote greater cross-border transaction flows through connectivity with other global platforms
Conclusion
Payment service providers will benefit from the streamlined administration of all national payment schemes under one roof. With the mature payments landscape in Singapore, this may help catalyse development of greater cross-border linkages and new technologies like palm biometrics for payment. Payment service providers should monitor developments and consider participating in industry committees to have a say in the evolution of the payments landscape.
Reed Smith LLP is licensed to operate as a foreign law practice in Singapore under the name and style Reed Smith Pte Ltd (hereafter collectively, "Reed Smith"). Where advice on Singapore law is required, we will refer the matter to and work with Reed Smith's Formal Law Alliance partner in Singapore, Resource Law LLC, where necessary.
Client Alert 2025-055
