Summary
Hong Kong-headquartered fintech KPay received in-principle approval from the Monetary Authority of Singapore for a Major Payment Institution (MPI) licence under the Payment Services Act 2019. The licence will allow KPay to provide merchant acquisition services, domestic money transfers, and cross-border money transfers in Singapore. KPay serves 10,000+ local SME merchants in Singapore, primarily in retail and F&B sectors, and operates dual headquarters in Singapore and Hong Kong. The company serves 95,000+ merchants regionally across Singapore, Hong Kong, Australia, and Japan.
Key Facts
- MAS in-principle approval for MPI licence under Payment Services Act 2019
- Licence scope: merchant acquisition, domestic money transfer, cross-border money transfer
- 10,000+ Singapore SME merchants (primarily retail and F&B)
- Dual headquarters: Singapore and Hong Kong
- 95,000+ merchants regionally (Singapore, Hong Kong, Australia, Japan)
- Expected benefits: faster onboarding, stronger settlement/funding reporting, enhanced merchant portal
- CEO Davis Chan: approval "demonstrates the maturity of the group's compliance and operational standards"
- Singapore as "the model" for Asia-Pacific expansion
- Subject to fulfilment of MAS conditions and final regulatory approval
Why It Matters
KPay's MAS in-principle approval is significant for two reasons. First, it shows that MAS continues to license fintechs under the Payment Services Act, maintaining Singapore's position as a regulated but accessible fintech hub. Second, KPay's strategy of using Singapore as a "model" for APAC expansion — building compliance and operational standards there before expanding to other markets — could become a template for other fintechs. The 10,000+ Singapore merchant base shows KPay has already achieved meaningful scale in the city-state before receiving the licence.