MAS and ABS Join Forces to Shape the Future of Singapore’s Payments Landscape

In a significant move to enhance Singapore’s payment landscape, the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have announced plans to create a new governing entity for the country’s national payment schemes. This initiative aims to optimize the administration of key domestic payment systems such as Fast And Secure Transfers (FAST), the Inter-bank GIRO System, PayNow, and the Singapore Quick Response Code (SGQR).

Streamlining Payment Operations

The establishment of this new entity is expected to streamline operations and improve governance across various payment systems. By consolidating these functions under a single body, MAS and ABS aim to enhance coordination between financial institutions and payment service providers.

Collaboration with MAS for a National Payments Strategy

This new entity will work closely with MAS to formulate Singapore’s national payments strategy, ensuring that the country’s payment infrastructure remains secure, efficient, and innovative. The decision to create this entity comes at a time when national payment schemes are widely utilized by consumers and businesses for both domestic and cross-border transactions.

Driving Innovation in the Payment Sector

By unifying these systems, MAS and ABS hope to stimulate further innovation in Singapore’s payments sector, positioning it to compete more effectively on a global scale. The leadership of this new entity will include senior representatives from MAS and the financial services sector, ensuring strategic oversight.

Engagement with Industry Stakeholders

Industry committees will also be established to facilitate collaboration with banks, payment service providers, and key user groups, such as business associations. This collaboration aims to guide the strategic direction and decision-making processes of the new entity.

Future Governance and Transition Plans

While the administration of the payment schemes will transition to this new body, there will be no immediate changes to the operational structure or rules governing the existing schemes. Chia Der Jiun, Managing Director of MAS, emphasized that this consolidation will enhance governance and contribute to greater resilience and innovation in the payment landscape.

Industry Leaders Weigh In

Piyush Gupta, Chairman of ABS, expressed optimism about the collaboration, stating, “ABS and member banks look forward to working closely with the industry to achieve Singapore’s goal as a Smart Financial Centre.” Furthermore, Jacqueline Loh, Chairman of SCHA, highlighted the importance of this initiative in strengthening the oversight and safety of payment schemes.

Looking Ahead

Details regarding the governance structure and leadership of the new entity will be announced later this year. The creation of this body signifies a pivotal step towards greater integration and collaboration in Singapore’s thriving digital economy.

For further insights on Singapore’s financial innovations, visit the Association of Banks in Singapore website.