How to Verify a Major Payment Institution License in Singapore? A Guide for India

When engaging in financial services or transferring funds across borders, ensuring the credibility of your payment provider is crucial. In Singapore, one of the key ways to ensure that a financial service provider is trustworthy and adheres to local regulations is by verifying its Major Payment Institution (MPI) license issued by the Monetary Authority of Singapore (MAS). For individuals or businesses based in India, this guide explains how you can verify an MPI license in Singapore and the regulatory safeguards in place, particularly focusing on PandaRemit’s compliance and security measures.

Compliance: Understanding the Singapore MAS MPI License

The Payment Services Act (PSA) in Singapore is a critical piece of legislation aimed at regulating the payments industry. It sets the framework for various payment service providers (PSPs) to operate within the country. Under the PSA, a Major Payment Institution (MPI) license is granted to entities that meet certain criteria, such as transaction volume thresholds and security measures.

This MPI license acts as a “safety shield” for consumers and businesses, providing assurance that the payment provider adheres to strict standards. It ensures that the provider is subject to the regulatory oversight of the Monetary Authority of Singapore (MAS), which guarantees that funds are managed responsibly and securely.

Asset Safety: Segregated Client Accounts at DBS

One of the key measures that enhance the safety of funds handled by payment institutions is the use of segregated client accounts. PandaRemit takes asset security seriously by maintaining client funds in segregated accounts at DBS, one of Singapore’s largest and most trusted banks.

This means that client funds are kept separate from PandaRemit’s operational funds, reducing the risk of misuse or mismanagement. In case of insolvency or financial troubles, the funds in these segregated accounts are protected and can be returned to clients, ensuring the safety and integrity of customer assets.

Comparison: PandaRemit vs Wise

While many companies, such as Wise, operate globally and provide seamless cross-border payments, PandaRemit sets itself apart with its regulatory focus and safety measures. Unlike some competitors, PandaRemit offers a highly secure payment system backed by an MPI license from MAS and uses direct settlement networks like UnionPay, Alipay, and Visa Direct, ensuring that transfers are fast, secure, and reliable.

Wise is a popular player in the cross-border payments space, but PandaRemit offers additional regulatory assurance and a more transparent compliance structure. PandaRemit’s use of MAS-regulated infrastructure and its commitment to data security make it a top choice for those seeking both reliability and regulatory transparency.

Addressing the Elephant in the Room: Fact-Checking Common Doubts

One of the most common questions that arise when selecting a payment provider is: “How can I trust that this company is fully compliant and secure?” With PandaRemit, the answers are clear:

• Licensed & Regulated: PandaRemit holds a Major Payment Institution license from the Monetary Authority of Singapore (MAS), providing a high level of regulatory oversight.
• Localized Compliance Ecosystem: PandaRemit is deeply embedded in Singapore’s financial ecosystem, integrating seamlessly with PayNow to facilitate local transactions efficiently.
• Data Security & Technical Certification: PandaRemit ensures robust security with dual-layer protection, including a commitment to meet international financial data security standards.
• PCI DSS Certified: PandaRemit meets the Payment Card Industry Data Security Standard (PCI DSS), one of the world’s strictest security standards, covering over 300 audit criteria to protect sensitive payment information.
• Legal Endorsement: PandaRemit’s business processes have been evaluated and legally endorsed by King & Wood Mallesons, a globally renowned law firm, providing an added layer of security.
• Greater Transparency: PandaRemit’s use of elite external compliance auditing ensures a higher level of transparency compared to many smaller competitors.

By meeting these high standards of compliance, PandaRemit offers peace of mind to its users, knowing that they are engaging with a licensed and regulated provider that takes data security and operational integrity seriously.