Get an MPI license Singapore

MPI license in Singapore – Legal status and access to financial infrastructure

MPI (Major Payment Institution) is a license issued by the Monetary Authority of Singapore (MAS) that allows major payment service providers to operate legally in Singapore.

It is required for companies whose transaction volume, e-money storage, or cross-border transfers exceed established thresholds; otherwise, operations are prohibited and subject to fines or account blocks.

Examples of services under Singapore payment institution license (MPI License):

• international and regional money transfers;
• currency exchange and foreign remittance;
• crypto exchanges and digital asset operations under regulation;
• payment gateways, merchant acquiring, and e-wallets;
• safeguarding and holding client funds.

Smaller companies can register as a Standard Payment Institution (SPI), while large and leading operators fall under the MPI category.

MPI is not just a formality – it is a gateway to Asian markets, providing access to banking infrastructure and partners, client protection, and reduced regulatory risks, which are critical for scaling and gaining the trust of investors and banks.

Types of activities covered by the MPI license in Singapore 

The Major Payment Institution (MPI) license in Singapore grants a company the right to conduct a wide range of regulated payment services. These activities are defined under the Payment Services Act and are supervised by the Monetary Authority of Singapore (MAS).

Even a small startup that is “only testing” functionality must obtain the required license or notify the regulator in advance. This reduces the risk of negative consequences.

Regulator and compliance obligations

Key requirements under the Payment Services Act include minimum capital, well-developed compliance programs, and robust risk management.

The regulator, the Monetary Authority of Singapore (MAS), sets market operation rules, establishes mandatory financial security standards, and is authorized to audit payment organizations on an ongoing basis.

Key obligations:

• compliance with AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) programs.
• implementation of KYC (customer identification and verification) and ongoing business relationship monitoring.
• regular reporting to the regulator and submission of audited financial documentation.
• storage and protection of regulatory and client information (transaction logs, verification documents) for the required retention period.
• timely identification and reporting of suspicious transactions (submission of STR/SAR according to national regulations).

After the license is issued, the regulator continues to monitor compliance. Recent practice shows that authorities are ready to impose significant sanctions for deficiencies in monitoring systems and AML controls.

Advantages of the Singapore MPI license

Singapore is recognized as one of the world’s leading fintech hubs, known for its advanced regulation, developed banking infrastructure, and strong reputation for corporate governance.

1. Robust regulatory framework
   • The MAS is a reliable regulator that ensures clear legislation, consistent rule enforcement, and transparent requirements for licensed organizations.
   • The Payment Services Act aligns businesses with global AML/CFT standards, including detailed internal policies, monitoring systems, and mandatory reporting obligations.
2. Wide range of activities
   • Licensed companies can provide a broad range of regulated payment services – from currency exchange to digital wallets and cryptocurrency-related operations.
   • The framework allows for the integration of innovative fintech solutions, including tokens, virtual assets, and e-commerce providers.
3. International recognition
   • An MPI license issued in Singapore is highly respected internationally and inspires confidence among banks, investors, and global clients.
   • Many international companies choose Singapore as a regional hub for remittance, fund transfer, and cross-border payment operations.
4. Business-friendly environment
   • Flexible capital and corporate governance requirements make the system accessible for innovative structures.
   • Stable tax policy and predictable corporate law attract foreign investors and promote long-term funding opportunities.
5. Modern financial and technological infrastructure
   • Singapore’s banking and digital infrastructure support real-time transactions, secure record storage, and efficient regulatory reporting.
   • Government initiatives strengthen cybersecurity, IT development, and the availability of highly skilled professionals, including compliance officers and senior executives.

MPI license compared to other jurisdictions

When choosing where to obtain a payment license, companies often compare Singapore with other leading financial jurisdictions.

Each system has its own advantages, requirements, and regulatory approach.

Key takeaways

• Singapore offers a balanced model – strict requirements and effective supervision combined with international credibility.
• The EU, with MiCA, provides unified regulation but involves higher capital and governance requirements.
• The UK and the US remain attractive markets, though their licensing processes are more complex and fragmented.
• Offshore jurisdictions allow quick entry but lack the trust of banks and clients.

MAS regulatory requirements for obtaining an MPI Singapore MPI license

To operate as a Major Payment Institution (MPI) in Singapore, a company must meet strict requirements under the Payment Services Act, supervised by the Monetary Authority of Singapore (MAS).

1. Corporate and legal structure
   • Establish a legal entity registered in Singapore.
   • Provide details of directors, shareholders, and beneficial owners.
   • Maintain a local office with qualified staff and a compliance officer.
   • Ensure corporate governance in accordance with Singaporean law.
2. Capital and financial stability
   • Minimum capital requirement: SGD 250,000 for an MPI license registered in Singapore.
   • Demonstrate sufficient financial resources to sustain business operations.
   • Maintain a bank account for safeguarding client funds and e-money balances.
   • Submit audited reports and annual financial statements.
3. Compliance and AML/CFT framework
   • Implement robust AML, KYC, and anti-money laundering programs.
   • Develop internal policies, procedures, and monitoring systems.
   • Appoint a compliance officer responsible for reporting and risk assessment.
   • Conduct regular staff training to ensure regulatory adherence.
4. Documents and application package
   • Required documents: business plan, IT security plan, financial model, and ownership structure.
   • Provide evidence of IT infrastructure, cybersecurity measures, and technological capabilities.
   • Submit all reports and records to the regulator during the application process.
5. Corporate governance and risk management
   • Maintain a reliable internal control and risk management framework.
   • Appoint senior executives (CEO, CTO, CISO) and compliance officers.
   • Ensure transparent reporting and record-keeping to satisfy MAS evaluation and approval standards.