MAS and ABS to create new payments entity

Through this initiative, MAS and ABS aim to focus on improving the administration and governance of Singapore’s national payment schemes to position them for the next stage of development. The newly found entity is set to collaborate with MAS on the creation of Singapore’s national payments strategy, facilitating a safe, efficient, and advanced payment infrastructure.

The news comes just two months after MAS and ABS announced their plans to launch two electronic payment solutions. Through this, the two organisations aimed to address the needs of corporate and retail users and complement existing e-payment systems. To further facilitate this shift, the cessation deadline for corporate cheque processing was extended by one year.

Singapore’s payments sector

Currently, Singapore’s national payment schemes, including Fast and Secure Transfers (FAST), Inter-bank GIRO System, PayNow, and Singapore Quick Response Code (SGQR), are vastly leveraged by consumers and businesses in their day-to-day activities, providing a range of options for domestic and cross-border payments. These payment schemes are under the supervision of specific administrators, namely the Singapore Clearing House Association (SCHA), ABS, MAS, and Infocomm Media Development Authority (IMDA). By consolidating and administrating these schemes under a single entity, Singapore can optimise coordination and decision-making across national payment schemes, allowing financial institutions and payment service providers to take advantage of opportunities in global payments and advance growth and innovation in the payments landscape.

Furthermore, the new entity is set to be governed by senior representatives from both MAS and the financial services industry, who are set to deliver strategic direction to the management team. At the same time, MAS and ABS plan to form industry committees to engage banks, payment service providers, and user groups, including industry and business associations, to assist in strategy development. No changes to the operations and scheme rules of the national payment schemes are set to be implemented as they are consolidated into the new entity. MAS and ABS intend to announce further details on the entity name, governance structure, and board composition later in 2025.