Singapore’s central bank has announced that eligible non-bank financial institutions (NFIs) will have direct access to the banking system’s retail payments infrastructure from February 2021.
The Monetary Authority of Singapore (MAS) added that to be elligable to benefit from the new opportunity, companies must be licenced as major payment institutions under the Payment Services Act.
That means that FinTechs and other financial companies can connect directly to Fast and Secure Transfers (FAST), and to PayNow, an electronic funds transfer service that enables customers of participating entities to transfer Singapore dollar funds from one entity to another instantly.
“Direct access by NFIs to FAST and PayNow closes the last-mile gap in Singapore’s e-payments journey,” said Ravi Menon, managing director of MAS. “Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts. Our vision to enable complete real-time payments interoperability will now become a reality. Adoption of e-payments will become even more simple for individuals and businesses. MAS thanks the members of the DFWG for their spirit of partnership that brought to fruition this major milestone for e-payments in Singapore.”
Lawrence Chan, Chairman of Banking Computer Services (BCS), added, “Since our inception, BCS has worked closely with the financial industry to spearhead large-scale, national payment projects that have enhanced the industry’s service offerings in Singapore.
“The successful launch of the API payment gateway is a significant milestone for FAST and PayNow, which are the foundation of instantaneous, open and accessible payments. As the operator of FAST and PayNow, we are proud to be part of this ongoing progress of Singapore’s real-time payments infrastructure that will serve as both a catalyst and an enabler for innovative e-payments.”
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