New body to oversee city-state's payment schemes
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.
Additionally, 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.
Additionally, 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.
Furthermore, 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. — The Straits Times/ANN
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