How to Apply for a Singapore Payment Licence (MPI/SPI): MAS Payment Services Act Requirements and Process

Singapore's Payment Services Act 2019 divides payment business into 7 regulated services: account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, e-money issuance, digital payment token (DPT) services, and money-changing. A single licence covers whichever services you select, while regulatory intensity is split into two tiers by transaction volume. An SPI (Standard Payment Institution) licence suits firms whose monthly average transactions do not exceed S$3 million for any single service, S$6 million combined across two or more services, and whose daily average e-money float stays within S$5 million. Exceed any of these thresholds and you must hold an MPI (Major Payment Institution) licence, which has no transaction caps but carries heavier regulatory requirements.

For the crypto industry, the DPT service category is the key entry point into Singapore's regime: exchanges, OTC desks and custodial transfer services can all fall within the DPT definition. They sit under the same statute and the same licensing framework as remittance services, rather than being split across separate regulators as in Hong Kong.

Entity: a Singapore-incorporated company or the Singapore branch of a foreign company, with a permanent place of business. Capital: base capital of S$100,000 for an SPI and S$250,000 for an MPI. An MPI must also lodge a security deposit: S$100,000 where monthly average transactions do not exceed S$6 million, and S$200,000 above that. Governance: at least 1 executive director who is a Singapore citizen or permanent resident (or 1 executive director holding an Employment Pass plus 1 citizen or PR non-executive director). From 26 August 2024, applications must also include a legal opinion on the business model; DPT applicants that receive in-principle approval (IPA) must additionally engage an independent external auditor. AML/CFT systems, technology risk management and fit-and-proper checks on senior management apply throughout.

Applications are submitted online via Singpass (corporate G2B login) using Form 1 with the checklist annexes. MAS typically raises several rounds of follow-up queries during review, then issues an IPA; the licence is granted once the pre-conditions are met. Official application fees (non-refundable): S$1,000 per service for an SPI; S$1,500 per service for an MPI (S$500 for the money-changing service), charged at the higher of the aggregate or the floor amount.

On timing, MAS states plainly that the current application queue exceeds one year. Few regulators put that in writing. Preparing the business model, shareholder background and compliance documents in full before filing will shorten the overall process far more than responding to repeated document requests.