Payment Services Act: Singapore’s fintech revolution

The Payment Services Act 2019 (No. 2 of 2019) (“PS Act”) and the accompanying Payment Services Regulations (“PSR”) came into force on 28 January 2020, bringing significant regulatory change to Singapore’s payment services ecosystem. The new PS Act provides a forward-looking and flexible framework for the payments industry. An act that aims to mitigate risk through consumer safeguards while facilitating innovation and growth for service providers, it is the latest development in the government’s wider vision to transform Singapore into a smart nation.

Although the PS Act has only recently come into force, companies have already begun applying to be licensed under the new regime. For example, Binance Holdings, an operator of one of the world's largest cryptocurrency exchanges, announced on 17 February that it had applied for an operating licence under the PS Act.

This briefing note highlights some key features of the PS Act and PSR, how current regulated businesses will be affected, and how other existing businesses offering payments services which were previously unregulated may be affected.