Singapore's influence spotlighted in international cross-border payment sector through recent data
Singapore Emerges as a Global Hub for Cross-Border Payments
Singapore has solidified its position as a major player in the cross-border payments industry, according to a recent report published on our platform. The report, which maps Singapore's payments players, highlights the city-state's role as a hub of innovation in this sector.
The report reveals that Singapore is home to 53 companies holding a Stored Payment Instrument (SPI) license and 39 companies holding a Major Payment Institution (MPI) license. These licenses are regulatory authorizations issued by the Monetary Authority of Singapore (MAS) for companies providing payment services.
One of the key findings of the report is Singapore’s active role in driving regional financial inclusion and seamless cross-border payments. The city-state has implemented bilateral payment linkages such as PayNow-PromptPay with Thailand and PayNow-DuitNow with Malaysia. These linkages have facilitated instantaneous QR code payments between the two countries, processing over S$600 million in transactions and enabling SMEs and migrant workers to make cross-border payments easily.
MAS is actively exploring linkage expansions with other ASEAN countries like the Philippines, Vietnam, and India, aiming to reduce reliance on costly traditional remittance methods and enhance ASEAN’s digital payment ecosystem.
The report also underscores Singapore’s supportive regulatory environment as a key factor in attracting cross-border payment players to the city. MAS's progressive licensing and sandbox initiatives encourage fintech innovation while maintaining stability.
The payments landscape is evolving towards a cashless, digital economy, with significant growth projections for prepaid card and digital wallet markets. By 2029, the market is expected to reach USD 15.51 billion, supporting the increasing demand for digital financial services and seamless payments.
The report notes that 90 of the larger international cross-border players now hold MPI or SPI licenses to operate in Singapore. Just under a third hold merchant acquisition service or account issuance licences. Less than half of licence holders in Singapore also hold a domestic money transfer licence.
The report also emphasizes the importance of Singapore's cross-border money transfer licence in facilitating the growth of the city's payments industry. 93% of MPI licence holders have a cross-border money transfer licence, while only 40% of SPI licence holders do. Digital payment token service licences, required for cryptocurrency-related activities, are the least common type held by MPI licence holders in Singapore.
Singapore's popularity is due to its position as a hub for a highly skilled international workforce with a drive for innovation. Over the next few years, it is expected that more companies will secure a cross-border payments licence in Singapore, further cementing the city-state's status as a global hub for this industry.
To read more about the companies operating in Singapore, click here.
- Given Singapore's supportive regulatory environment for business and innovation in technology, particularly cross-border payments, it is no surprise that 90 International cross-border players have obtained Major Payment Institution (MPI) or Stored Payment Instrument (SPI) licenses.
- With Singapore actively expanding its bilateral payment linkages among ASEAN countries, the city-state's position as a global hub for cross-border payments and finance is increasingly appealing to fintech businesses seeking a conducive and innovative technology-driven environment.
