If you are thinking of delivering commercial offers directly associated with payments in the Singaporean market, you are obliged by law to acquire a payment service provider license in Singapore. Below are the key points you need to consider before entering the Singaporean market of finances.
What is a PSP authorization?
A Singaporean PSP license is permission to run commercial operations from the Mοnetary Authority. Such permission enables licensees to deliver offers overseen by the PSA – law on provision of financial services. These services encompass as follows:
- Account opening;
- Local funds transfers;
- Cross-border funds transfers;
- Enabling merchants accepting credit card or debit card payments;
- E-funds issuance;
- Cryptocurrency dealing;
- Forex.
Categories of Singaporean PSP Licenses
If you consider delivering any of the above-mentioned services, it is significant for you to apply for the correct permit. Overall, there are 3 classes of authorizations you can make a request for:
- Mοney changer (MC license);
- Standard payment institutiοn (SPI license); and
- Majοr payment institutiοn (MPI license).
MC license
Companies intending to deliver solely money-exchanging services (meaning trading foreign currencies) can do so with a MC license. If other services are to be encompassed by the portfolio of the company offers, then either a SPIL license or a MPIL license is needed.
SPI license and MPI license
These types of authorizations enable you to offer more than one offer supervised by the PSA.
Also, a SPI license is subject to be obtained only if you consider the delivery of offers below these amounts:
- 3,000,000 SGD operations for any service per month;
- 6,000,000 SGD payment operations for 2 or more services per month;
- 5,000,000 SGD of daily e-funds οutstanding.
A MPI license is subject to acquisition only if you plan the delivery of offers above the amounts indicated.
Getting a PSP License in Singapore
You should seek a permit only if the service you deliver is in the list of overseen operations by the PSA. You have to ensure that you satisfy the eligibility criteria for becoming licensed.
Conditions for MH license
The senior operating managers of an entity seeking a MC authorization must have at min. one year of professional expertise.
Criteria for SPI license and MPI license
Applicants making an inquiry for one of these two types of authorization are expected to meet the following criteria:
- Be Singaporean-incorporated;
- Have a physical presence of business;
- At least 100,000 SGD contributed capital for a SPI license or at least 250,000 SGD contributed capital for a MPI license;
- At least one senior operating officer who has Singaporean citizenship or residence; or at least one non-executive who has Singaporean citizenship or residence and one senior operating officer who has a work permit.
How much does the PSP license cost?
The applicatiοn fees are the following:
- For a MC license, 500 SGD.
- For a SPI license, 1,000 SGD.
- For a MPI license, 1,500 SGD.
Acquiring a PSP license in Singapore can be challenging given a plethora of obligations to comply with. You may wish to consider getting professional advice from a lawyer, who can take you through the appropriate legal and regulatory obligations, and take care the application process is run as smoothly as possible.
Please contact us to get more information.
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