Singapore’s MPI Licence: A Comprehensive Guide for Fintech, Crypto & Payments Professionals

Singapore has solidified its position as a global leader in financial-services regulation and innovation, driven by its transparent framework under the Payment Services Act 2019 (PS Act) (see Licensing for Payment Service Providers on the official Monetary Authority of Singapore website: mas.gov.sg).

For companies aiming to operate large-scale payment, e-money, cross-border remittance, or digital asset token services, Singapore offers the Major Payment Institution (MPI) licence -designed for entities exceeding limits applicable to smaller operators under the Standard Payment Institution (SPI) licence.

1. Why Obtain an MPI Licence?

If your organisation expects significant transaction volumes or plans to offer multiple regulated payment services, the MPI licence provides flexibility without monthly transaction caps, unlike the SPI licence

This licence enables companies to operate at scale in a jurisdiction recognised globally for regulatory integrity and innovation. For a broader breakdown of eligibility requirements and licence suitability.

2. Permitted Activities Under the MPI Licence

MPI-licensed entities may offer one or multiple regulated services under the PS Act, including:

• Issuing payment accounts and e-wallets
• Domestic transfers and local payment processing
• Cross-border remittances
• Merchant acquisition and payment acceptance
• E-money issuance
• Digital payment token (crypto) services
• Currency exchange services

A detailed breakdown is available via the GoBusiness Singapore licensing directory:licensing.gobusiness.gov.sg.

3. Key Eligibility Criteria & Ongoing Obligations

Corporate & Governance Requirements

Applicants must incorporate a Singapore entity and ensure at least one Executive Director or required officer resides in Singapore (citizen, PR or EP holder). Full leadership must meet MAS “fit and proper” criteria.

Financial & Safeguarding Requirements

Minimum paid-up capital is S$250,000, with safeguarding measures required to protect customer funds. Additional conditions may apply depending on transaction volume, including security deposits and bank guarantees

Operational Presence & Compliance

Applicants must maintain a physical office in Singapore and implement comprehensive technology and cybersecurity frameworks, especially when offering digital token services.

4. Licensing Process & Timeline

A typical process includes:

• Incorporation and corporate structuring
• Preparing business plan, AML/CFT framework, tech and safeguarding controls
• Application submission to MAS
• Regulatory review and follow-up queries
• Final authorisation

Timelines often range from 6–12 months depending on complexity

5. Recent Regulatory Updates

In 2024, MAS issued revised Guidelines on Licensing for Payment Service Providers (PS-G01), introducing new requirements:

• mandatory legal opinions for new SPI/MPI applicants
• mandatory external auditor (EA) assessments for digital token services
• stricter readiness checks during review

6. Strategic Benefits for Businesses

The MPI licence supports:

• regulatory credibility for partners, banks, and investors
• scaling payment services regionally and globally
• compliance frameworks suitable for digital finance and tokenisation
• competitive differentiation from unregulated providers
• operation within one of APAC’s leading fintech hubs

Conclusion

The Major Payment Institution licence provides a robust path for organisations operating high-volume transactional and digital-asset services. With strong compliance, local governance, and well-structured documentation, companies can use Singapore as a trusted base for global expansion.