Singapore's New Payments Entity: A Step Towards Resilience and Innovation

The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have announced the establishment of a new entity to consolidate the administration and governance of national payment schemes. This move, aimed at strengthening the governance of these schemes and contributing towards greater payments resilience and innovation, is set to transform Singapore's payments infrastructure.

The new entity, to be governed by senior representatives from both MAS and the financial services industry, will collaborate with MAS to develop Singapore's national payments strategy. This collaboration will ensure a safe, efficient, and innovative payments infrastructure, benefiting both consumers and businesses.



The consolidation of national payment schemes under a single entity will enable better coordination and collaboration among stakeholders, leading to improved efficiency and resilience in Singapore's payments infrastructure. The new entity will work closely with MAS to develop Singapore's national payments strategy and ensure a safe, efficient, and innovative payments infrastructure.

The new entity's governance structure, involving senior representatives from both the central bank and the financial services industry, has several potential implications on decision-making and innovation. This balanced approach to decision-making can lead to better-informed decisions that consider both regulatory and industry perspectives. Enhanced collaboration between the regulator and the industry can foster closer communication and more effective addressing of regulatory challenges, promoting innovation in the payments sector.

The transition from cheques to electronic payment solutions, such as EDP and EDP+, is expected to bring increased convenience, potential cost savings, and higher adoption rates for businesses and individuals in Singapore. These solutions cater to post-dated payments and provide greater payment certainty, with funds deducted immediately upon issuance. Both solutions will be accessible through digital banking platforms and integrated with PayNow for seamless payee identification, making the payment process more efficient and user-friendly.

To facilitate a smooth transition, MAS is urging businesses to prepare for the change and adopt these solutions as soon as they become available. The public consultation paper has been released to address the needs of businesses and individuals and to outline proposed initiatives to ease the transition. The deadline for ceasing corporate cheque processing has been extended by one year to the end of 2026, allowing sufficient time for adjustment.

In conclusion, the establishment of the new payments entity and the transition to electronic payment solutions like EDP and EDP+ are significant steps towards enhancing the efficiency, resilience, and innovation of Singapore's payments infrastructure. These changes are expected to bring increased convenience, potential cost savings, and higher adoption rates for businesses and individuals, ultimately driving the growth and competitiveness of Singapore's financial sector.