The Monetary Authority of Singapore (“MAS“) and the Association of Banks in Singapore (ABS) will set up a new entity to consolidate the administration and governance of Singapore’s national payment schemes, such as Fast And Secure Transfers (FAST), Inter-bank GIRO System, PayNow, and Singapore Quick Response Code (SGQR). The consolidation aims to enhance coordination and decision-making, support the development of Singapore’s national payments strategy, as well as ensure a safe, efficient, and innovative payments infrastructure.
By way of context, payment schemes are generally enabled through a number of national payment networks, each governed by an agreed set of rules and procedures. These rules determine, among other things: (i) the access of participants to the network; (ii) pricing for using the network; and (iii) the operational and security standards that these participants are expected to maintain in using the network and in providing payment services to their customers. A payment scheme refers to the participants and the set of rules and procedures for each payment network. Scheme administrators are the entities administrating and governing these payment schemes. Similar to existing scheme administrators, the new entity will not be regulated as it is not involved in the day-to-day operations of payment schemes.
The new entity will be governed by senior representatives from MAS and the financial services industry. Industry committees will engage banks, payment service providers, and key user groups. Further details on the entity name, governance structure, and board composition will be announced later this year.
There will be no changes to the operations and scheme rules of national payment schemes.
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