MAS Payment Services Act licensing — MPI and SPI — Timeline and processing benchmarks
Published on: 11 Jul, 2026

MAS Payment Services Act licensing — MPI and SPI — Timeline and processing benchmarks

MAS Payment Services Act licensing sorts payment businesses into a Standard Payment Institution (SPI) or a Major Payment Institution (MPI) licence, depending on transaction volumes and float held. In practice, a firm crossing the prescribed thresholds must hold an MPI licence, while smaller operators below those limits may qualify for the lighter SPI tier.

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What SPI and MPI licences cover

The Payment Services Act regulates seven payment services, including account issuance, domestic and cross-border money transfer, merchant acquisition, e-money issuance, and digital payment token services. A single licence can authorise several activities, but the tier depends on the scale at which they are carried on. See our related guide, VCC Act 2018 — Section 17 legal personality — Costs and fees breakdown, for more detail.

An SPI is capped by monthly transaction volume and e-money float thresholds; once a firm expects to exceed them, an MPI licence becomes mandatory, bringing higher capital and safeguarding obligations.

Who needs a licence

Any business providing a regulated payment service in Singapore, from remittance operators and wallet providers to crypto payment firms, falls within scope. Firms should map each product line to the seven activities before deciding on tier. See our related guide, Nominee director services — foreigner essentials — Timeline and processing benchmarks, for more detail.

Businesses that only facilitate payments as a technical service provider, without holding funds or coming within a regulated activity, may sit outside the regime, but the analysis is fact-specific.

Eligibility and requirements

An SPI requires base capital of S$100,000, while an MPI requires S$250,000. MPIs must also safeguard customer money through an undertaking from a bank, a guarantee, or a trust account. Both tiers require fit-and-proper controllers, a permanent place of business and a compliance and anti-money-laundering framework.

MAS expects robust AML/CFT controls, a technology risk management posture and, for digital payment token services, additional consumer protection and custody measures.

Refer to the official guidance. Refer to the official guidance.

Cost and timeline benchmarks

Applicants should budget for a multi-month review and significant compliance build. Digital payment token applications generally attract the longest review times given heightened AML and custody scrutiny.

Mas payment services act licensing — costs, timelines and thresholds

  • SPI base capital: S$100,000
  • MPI base capital: S$250,000
  • SPI monthly transaction cap (single service): S$3 million
  • Indicative MAS review: 4 to 12 months depending on activity
  • Compliance build and advisory budget: S$30,000 to S$80,000

Step-by-step licensing process

Scope your activities against the seven regulated services, choose the correct tier, put base capital and safeguarding arrangements in place, prepare the application with AML/CFT and technology risk documentation, submit via the MAS portal, and complete post-approval conditions before commencing.

Engaging an AML compliance specialist early materially improves the quality of the submission and reduces back-and-forth with the regulator.

Common mistakes and gotchas

The frequent errors are mis-tiering (starting as SPI when volumes clearly point to MPI), thin AML frameworks, and neglecting safeguarding mechanics for MPI float. Under-provisioning for technology risk management is another recurring gap. See our related guide, MAS Payment Services Act licensing — MPI and SPI — Costs and fees breakdown, for more detail.

Payment firms structuring for growth often review corporate structuring and treasury arrangements at the same time as licensing.

Relevant legislation

The Payment Services Act 2019 establishes the licensing framework for payment service providers and distinguishes Standard from Major Payment Institutions by prescribed thresholds.

The Payment Services Act 2019 requires Major Payment Institutions to safeguard customer money through mechanisms such as a bank undertaking, guarantee or trust arrangement.

FAQs

What is the difference between SPI and MPI?
An SPI operates below prescribed transaction and float thresholds with S$100,000 base capital; an MPI exceeds those thresholds and requires S$250,000 base capital plus safeguarding of customer money.

How many payment services are regulated?
The Payment Services Act regulates seven payment services, and a single licence can cover more than one.

How long does a PSA licence take?
Review commonly runs four to twelve months, with digital payment token services taking longer due to AML and custody scrutiny.

Do crypto firms need a PSA licence?
Firms providing digital payment token services generally require licensing and face additional AML, custody and consumer protection requirements.

Related guides

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.