MAS Payment Services Act licensing — MPI and SPI — Costs and fees breakdown
MAS Payment Services Act licensing requires most payment businesses in Singapore to hold either a Standard Payment Institution (SPI) or Major Payment Institution (MPI) licence, depending on transaction volume. This guide breaks down the thresholds, the seven regulated activities, and the realistic costs in Singapore dollars as at June 2026.
Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
What MAS Payment Services Act licensing covers
The Payment Services Act 2019 regulates seven payment activities: account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, e-money issuance, digital payment token services, and money-changing. A business carrying on any of these as a regulated service must be licensed unless it falls below the relevant thresholds or qualifies for an exemption. The Act adopts an activity-based and risk-based approach, so a single licence can authorise multiple activities.
The two principal licence classes are the Standard Payment Institution and the Major Payment Institution. The difference is scale: an SPI operates below the transaction and e-money thresholds, while an MPI is required once those thresholds are exceeded.
Who needs an SPI or MPI licence
Payment startups, remittance operators, e-wallet providers, merchant acquirers and crypto service providers all fall within scope. The SPI licence suits earlier-stage or lower-volume operators; the MPI licence is for businesses exceeding S$3 million in monthly transactions for any single activity, S$6 million across two or more activities, or holding more than S$5 million in daily outstanding e-money. Firms that also manage client money for investment purposes may need to consider whether a separate Capital Markets Services licence applies.
MAS Payment Services Act licensing thresholds and capital
An SPI must hold base capital of S$100,000; an MPI must hold base capital of S$250,000. MPIs must also maintain a security (bank guarantee or undertaking) of S$100,000, rising to S$200,000 where average monthly transactions exceed S$6 million, and must safeguard customer money through a bank undertaking, guarantee or trust arrangement. Both classes must appoint a permanent place of business, at least one executive director resident in Singapore, and an approved compliance and anti-money-laundering arrangement.
Costs and timeline
Indicative figures: MAS application fees range from roughly S$1,000 to S$10,000 depending on the activities applied for. Licensing and compliance setup support typically runs S$25,000 to S$60,000 given the AML/CFT, technology-risk and audit documentation required. Base capital is S$100,000 (SPI) or S$250,000 (MPI). Annual audit and AML programme costs commonly add S$15,000 to S$40,000 a year. MAS review typically takes 4 to 9 months for an SPI and 6 to 12 months for an MPI from a complete submission.
Step-by-step application process
Map your business model to the seven activities and confirm SPI or MPI status against the thresholds. Incorporate the entity and fund base capital. Build the AML/CFT framework, technology-risk management policy, and safeguarding arrangement. Appoint the resident executive director and compliance officer. Submit the application through the MAS portal with the business plan and financial projections. Respond to MAS queries, complete any pre-licensing audit, and on approval implement ongoing transaction monitoring and reporting. Foreign founders setting up the entity should review the Singapore Pte Ltd registration for foreigners guide first.
Common mistakes and gotchas
The most common error is applying for the wrong licence class because transaction volumes were projected too conservatively; crossing an MPI threshold while holding only an SPI is a breach. Others include weak AML/CFT documentation, no clear safeguarding mechanism for customer money, and underestimating MAS’s expectations on technology risk. Digital payment token providers face heightened scrutiny and longer timelines.
Related guides
For investment-management licensing, see the CMS licence guide. For the underlying Singapore entity used to apply, read Singapore Pte Ltd registration for foreigners. Fund-adjacent structures are covered in our VCC tax treatment walkthrough.
Authoritative references: the Monetary Authority of Singapore publishes the Payment Services Act licensing guidelines and thresholds, and the Inland Revenue Authority of Singapore sets out GST treatment of payment services.
FAQs
What is the difference between SPI and MPI?
An SPI operates below the transaction thresholds (S$3 million monthly per activity, S$6 million across activities, or S$5 million daily e-money). An MPI exceeds them and faces higher capital and safeguarding requirements.
How much base capital is required?
S$100,000 for an SPI and S$250,000 for an MPI, with MPIs also providing a security of S$100,000 to S$200,000.
How long does licensing take?
Typically 4 to 9 months for an SPI and 6 to 12 months for an MPI from a complete submission, longer for digital payment token services.
Can one licence cover several activities?
Yes. A single SPI or MPI licence can authorise multiple payment activities, but capital and safeguarding scale with the activities and volumes involved.
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.