MAS, ABS announce new entity to oversee Singapore's eight national payment schemes

Straits Times

6 hours ago

Deputy Prime Minister Gan Kim Yong noted that payment options such as Fast and SGQR are an indispensable part of the daily lives of consumers and businesses. PHOTO: LIANHE ZAOBAO
SINGAPORE - Singapore announced the incorporation of a new entity that will administer and oversee the Republic's eight national payment schemes, such as Fast, Giro, PayNow and SGQR.
The Singapore Payments Network (Span), which will be operational by 2026, will aim to strengthen the governance of both national and cross-border payment schemes, the Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS) said on June 25.
It will also drive continuous innovation in the payments space and encourage active collaboration among key industry players.
The initial members of Span are MAS and financial institutions comprising Citibank, DBS Bank, HSBC, Maybank, OCBC, Standard Chartered Bank and UOB.
A board of directors will be formed to guide Span's progression from incorporation to operational readiness, while ensuring sound governance and alignment with its strategic purpose, MAS and ABS said.
The 11-member board will comprise two senior representatives from MAS, five from bank and non-bank financial institutions, as well as four independent industry directors.
It will also oversee the next phase of work, including the onboarding of other core national payment infrastructure participants as company members, and the transition of the payment schemes from their current administrators to Span.
Such schemes are currently administered and governed by MAS, ABS, the Singapore Clearing House Association and the Infocomm Media Development Authority.
This development comes after MAS and ABS announced on Feb 12 plans to consolidate Singapore's national payment schemes under a single entity.
Speaking at ABS' 52nd annual dinner on June 25, Deputy Prime Minister Gan Kim Yong said the formation of Span is a timely move to strengthen the national payments infrastructure and drive further innovation within Singapore's payments sector.
Mr Gan, who is also MAS chairman, noted that payment options such as Fast and SGQR are an indispensable part of the daily lives of consumers and businesses, as they enable personal and corporate payment transactions within and outside of Singapore.
In a statement, MAS managing director Chia Der Jiun said the incorporation of Span is an important step towards strengthening Singapore's national payment infrastructure through a unified governance framework.
ABS chairman Helen Wong added that streamlining the governance of the Republic's payment schemes under Span will allow financial institutions to respond more swiftly and innovate more effectively to meet the evolving digital payment needs of consumers and businesses.
At the event, Ms Wong also said that Singapore will roll out two electronic deferred payment (EDP) methods at the end of July to support the transition from cheques to e-payments.
Retail and corporate customers of seven banks – DBS, OCBC, UOB, Citibank, Standard Chartered, Maybank and HSBC – will have access to these two solutions via digital banking platforms.
An awareness and educational campaign will also be launched alongside the roll-out.
In his speech, Mr Gan noted that Singapore's banking sector has been the cornerstone of the city-state's position as a global financial centre.
'Today, our banks are among the best-capitalised, most digitally advanced, and most regionally connected in the world. This has enabled Singapore to become a key node for capital in Asia, which in turn reinforces our presence as a hub for trade, investments and talent,' he said.
Despite such achievements, US tariff uncertainties weigh on countries including Singapore as they await the outcome of the US' negotiations with its other key trading partners, he said.
Notwithstanding the outcome of these negotiations, it is unlikely that the US will return to the status quo ante any time soon, he said.
Businesses must therefore adapt to a more protectionist global economic order.
Mr Gan noted that banks play a critical role in helping companies tide through emerging challenges such as cashflow issues due to cancelled or deferred orders from tariffs.
He said that banks have stepped up in this time of need, such as offering temporary extensions of trade bills to small and medium-sized enterprises, and he encouraged banks to take the opportunity to strengthen customer relationships by supporting these companies' growth and expansion into new markets.
Mr Gan said such geo-economic disruptions are happening amid other fundamental changes, including the need to transition to a low-carbon future.
He noted the need to establish clear, consistent and credible guidelines to drive effective climate-financing action.
As a result, the Singapore Sustainable Finance Association will launch a guide to leverage the Singapore-Asia Taxonomy (SAT) to support green and transition financing.
The SAT was launched by MAS two years ago to facilitate transition financing, with clear, credible and science-based definitions of what constitutes green and transition activities.
For example, the guide will offer industry-agreed interpretations in areas where data gaps may exist or where further clarity is needed.
This will give market participants greater confidence to raise and deploy green and transition financing that are aligned to the SAT, said Mr Gan.
He also announced that NUS Business School will be introducing an undergraduate specialisation in sustainable finance.
NUS plans to enrol about 50 students in each academic year in this programme and hopes to scale this up over time.
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