The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have on Wednesday jointly announced that a new entity will be set up to consolidate the administration and governance of Singapore’s national payment schemes to position these schemes for the next stage of growth.

The duo said in a statement that the entity will also collaborate with MAS on the development of Singapore’s national payments strategy, ensuring a safe, efficient and innovative payments infrastructure.

According to the statement, the country’s national payment schemes such as Fast And Secure Transfers (FAST), Inter-bank GIRO System, PayNow and Singapore Quick Response Code (SGQR) are widely used by consumers and businesses in their daily activities, offering a broad range of options for domestic and cross-border payments.

These schemes are administered and governed by specific scheme administrators, namely, 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 across national payment schemes, enabling our 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 services providers and key user groups such as industry and business associations to support strategy development.

There will be no changes to the operations and scheme rules of the national payment schemes as they are consolidated to the new entity. Further details on the entity name, governance structure and board composition will be announced later this year.

It is noted that national payment schemes are a key foundational layer of Singapore’s digital economy, supporting businesses and financial market participants with faster, more convenient and cost-effective payments.

They also promote greater cross-border transaction flows through connectivity with other global platforms.

Thus, the duo opined that the national payment schemes need to evolve to meet new and emerging payment needs of consumers and businesses, and the consolidation of these schemes under a single entity will foster more effective and inclusive payment solutions by both banks and payment service providers participating in these schemes.

“Consolidating the administrative and governance responsibilities of all national payment schemes under a single entity will strengthen the governance of these schemes and contribute towards greater payments resilience and innovation,” said Chia Der Jiun, Managing Director of MAS.

Piyush Gupta, ABS Chairman, said ABS and member banks look forward to working closely with the industry to achieve Singapore’s goal as a Smart Financial Center.

“The new payments entity will enable us to rationalize our various payment rails, as well as provide a springboard to leverage technology in imagining the future of payments,” he said.

Jacqueline Loh, Chairman of SCHA and Deputy Managing Director (Corporate Development) of MAS, said by channeling the payments industry’s resources and expertise into a single entity, this initiative will strengthen existing capabilities in the oversight of resilience and safety of the payment schemes and ensure consistent implementation of national e-payment strategies across the various payment schemes.

“SCHA is committed to see through the smooth transition to the new entity,” she added.

Leong Der Yao, Assistant Chief Executive (Sectoral Transformation) of IMDA, said IMDA and MAS have jointly developed and advanced the SGQR scheme since 2017, making it one of Singapore’s most widely adopted payment systems.

“The transfer of SGQR scheme administration and governance, along with other payment schemes, to the new single entity will streamline the local payments landscape, delivering a more seamless experience for businesses and consumers,

“This transition will also open doors for greater collaborations with international digital wallets and financial institutions,” he added.

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