Major Payment Institution (MPI) Licence: What It Means for Fintech Apps You Use in Singapore
A Major Payment Institution (MPI) licence is a MAS-issued authorisation under the Payment Services Act that allows a fintech firm to provide higher-volume payment services in Singapore — such as e-money issuance, cross-border transfers, or digital payment token services — above the transaction limits allowed under the lighter Standard Payment Institution licence.
Not financial advice. All figures for educational reference only. Data as at September 2026.
Last updated: September 2026
Key Takeaways
- The MPI licence is issued by the Monetary Authority of Singapore (MAS) under the Payment Services Act 2019 (PS Act), Singapore’s core regulatory framework for fintech payment providers.
- Firms need an MPI licence once they exceed monthly transaction thresholds set for Standard Payment Institutions — S$3 million for a single payment service, or S$6 million across multiple services, or if they hold more than S$5 million in e-money float at any time.
- Popular consumer apps used by Singapore residents for remittances, multi-currency wallets, and crypto trading — including Wise, Instarem, and various digital payment token platforms — typically operate under an MPI licence.
- MPI holders face materially higher regulatory requirements than Standard Payment Institutions, including higher base capital (S$250,000 minimum), safeguarding of customer funds, and more extensive AML/CFT obligations.
- Checking a fintech provider’s licence status on the MAS Financial Institutions Directory is a practical way for SG consumers to verify legitimacy before entrusting funds to a payment app.
What Is a Major Payment Institution (MPI) Licence?
A Major Payment Institution licence is one of three licence classes created under Singapore’s Payment Services Act 2019 (the others being Money-Changing Licence and Standard Payment Institution licence), administered by the Monetary Authority of Singapore. It authorises a company to carry out one or more of seven regulated payment services at scale: account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, e-money issuance, digital payment token (DPT) services, and money-changing.
Before the PS Act consolidated regulation in 2020, Singapore’s fintech payment landscape was governed by separate, narrower regimes (the Payment Systems (Oversight) Act and Money-Changing and Remittance Businesses Act), which created gaps as fintech business models evolved. The PS Act introduced a single, activity-based licensing framework so that whether a firm offers e-wallets, cross-border remittance, or crypto exchange services, it falls under one coherent regulatory structure — with the MPI class reserved for firms operating at a scale MAS considers systemically or consumer-protection significant enough to warrant closer supervision.
How Does the MPI Licence Work in Singapore?
A payment services firm must apply for an MPI licence once its business crosses defined transaction volume thresholds, or it may apply for MPI status voluntarily from the outset if it expects to exceed these limits quickly. The key thresholds that separate a Standard Payment Institution (SPI) from an MPI are:
| Threshold | Standard Payment Institution (SPI) | Major Payment Institution (MPI) |
|---|---|---|
| Monthly transactions, single service | Up to S$3 million | Above S$3 million |
| Monthly transactions, 2+ services | Up to S$6 million combined | Above S$6 million combined |
| E-money float held | Up to S$5 million | Above S$5 million |
| Minimum base capital | S$100,000 | S$250,000 |
Once licensed as an MPI, a firm faces ongoing obligations including safeguarding of customer funds (via a trust arrangement, bank guarantee, or comparable method for e-money issuers and account issuers), anti-money laundering and countering the financing of terrorism (AML/CFT) requirements under MAS Notices, and regular reporting to MAS. For firms offering digital payment token services specifically, MAS applies additional conditions given the higher risk profile of crypto-related activities, including restrictions introduced in recent years around marketing DPT services to Singapore retail consumers. MAS publishes and maintains a public Financial Institutions Directory where consumers and businesses can verify whether a payment provider is licensed and under which class.
MPI Licence Example
A Singapore-based remittance and multi-currency wallet app grows from a small SPI-licensed startup processing S$1.5 million a month to a mainstream consumer product processing S$40 million a month in cross-border transfers and e-money top-ups across hundreds of thousands of users.
Once monthly transaction volume for cross-border transfers alone crosses the S$3 million SPI threshold, the firm is legally required to apply for and hold an MPI licence to continue operating that service in Singapore. As part of the MPI application, the firm must demonstrate it holds at least S$250,000 in base capital, has adequate systems to safeguard customer e-money balances (for example, by holding customer funds in a segregated trust account with a Singapore bank), and has AML/CFT policies proportionate to its transaction volume, including transaction monitoring and suspicious transaction reporting to the Suspicious Transaction Reporting Office.
Once approved, MAS lists the firm as an MPI-licensed entity on the public Financial Institutions Directory, and Singapore consumers using the app for overseas transfers can independently verify the licence before linking their bank account or loading funds into the wallet.
Advantages of the MPI Licensing Framework
- Consumer protection through capital and safeguarding rules. MPI holders must maintain higher capital buffers and safeguard customer funds, reducing the risk of a firm being unable to return balances if it fails.
- Single coherent framework for diverse fintech models. The PS Act’s activity-based approach means e-wallets, remittance apps, and crypto platforms are regulated consistently rather than under a patchwork of older laws.
- Public verifiability builds trust. The MAS Financial Institutions Directory lets any Singapore consumer check a provider’s licence status before trusting it with money, supporting informed decisions.
- Enables innovation at scale. By setting clear thresholds, the framework lets small fintech startups operate under lighter SPI rules while scaling toward MPI status as they grow, rather than facing full regulatory weight from day one.
- Stronger AML/CFT oversight. Higher transaction volumes carry higher money-laundering risk, so MPI-level scrutiny helps keep Singapore’s payments ecosystem aligned with international standards (including FATF recommendations).
Risks and Limitations
- Licensing is not a government guarantee of funds. Unlike bank deposits under the Deposit Insurance Scheme, e-money or balances held with an MPI-licensed (non-bank) payment institution are not covered by SDIC deposit insurance, even though the funds must be safeguarded.
- Safeguarding methods vary in strength. Depending on how a firm safeguards funds (trust account vs bank guarantee vs insurance), the practical protection for customers in an insolvency scenario can differ.
- Licence status can change. MAS can suspend or revoke a licence for non-compliance, and consumers should periodically re-check status rather than assume a one-time check is permanent.
- Higher compliance cost can raise fees. The additional capital and compliance burden of MPI status is sometimes passed on to consumers through transaction fees or FX markups compared to unregulated or informally operating alternatives.
- Not all payment activities require MPI status. Some overseas-based apps used by Singapore residents may operate without any Singapore payment services licence at all, which is a materially different (and generally riskier) situation than being SPI or MPI licensed.
Major Payment Institution vs Standard Payment Institution
| Feature | Major Payment Institution (MPI) | Standard Payment Institution (SPI) |
|---|---|---|
| Transaction volume | Above S$3M (single service) / S$6M (combined) per month | Up to S$3M (single service) / S$6M (combined) per month |
| E-money float limit | Above S$5 million | Up to S$5 million |
| Minimum base capital | S$250,000 | S$100,000 |
| Typical firm profile | Established, high-volume fintech and payment apps | Early-stage or smaller-scale payment startups |
| Regulatory scrutiny | Higher — closer MAS supervision | Lighter-touch, proportionate to smaller scale |
Source: Payment Services Act 2019, MAS Payment Services regulations and notices, 2026.
The Bottom Line
For Singapore consumers and businesses, understanding the MPI licence is important because it signals that a fintech payment provider operates under meaningful MAS oversight — capital requirements, fund safeguarding, and AML/CFT compliance — even though, unlike a bank, its balances are not covered by SDIC deposit insurance. Checking MAS’s Financial Institutions Directory before loading significant funds into any payment app remains the simplest way to confirm a provider’s licensing status.