Singapore will establish a new agency to oversee its national payment schemes by end-2026, the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced on 12 February 2025. The new entity will consolidate governance of key digital and cash transfer systems to ensure greater efficiency, resilience, and innovation.
New Agency to Oversee Cash and Support Schemes
| Key Fact | Detail |
|---|---|
| Launch Timeline | Agency expected to be operational by end-2026 |
| Objective | Consolidate oversight of national payment schemes such as PayNow and SGQR |
| Structure | Not-for-profit company supported by MAS and banks |
| Transition | No immediate changes to operations of existing schemes |
| Official Website | MAS |
The payments agency is expected to be fully operational by end-2026. While no immediate changes are planned for consumers and businesses, industry leaders believe the transition will pave the way for more integrated and secure digital services in the years ahead.
Why Singapore Is Creating a New Payments Agency
The PRIMARY-KEYWORD is being set up to centralise governance of Singapore’s existing payment schemes, which include PayNow, SGQR, and the Inter-bank GIRO system. According to MAS, the goal is to create a single point of accountability that can streamline processes, reduce duplication, and adapt quickly to technological changes.
Ravi Menon, Managing Director of MAS, said in a statement: “This new payments entity will ensure our infrastructure remains resilient, efficient, and inclusive as Singapore continues its transition towards a digital-first financial ecosystem.”
How the Agency Will Work
The agency will operate as a not-for-profit company. It will initially be supported by MAS and leading banks, with a governance framework that includes senior representatives from both the central bank and the financial sector.
Wong Kee Joo, Chairman of ABS, described the move as “a step forward in securing Singapore’s position as a trusted hub for payments innovation and financial stability.”
MAS emphasised that no changes will be made to the day-to-day operations of existing payment schemes during the transition phase. Consumers and businesses will continue using current systems without disruption.
Broader Context: Digital Payments in Singapore
Singapore has long positioned itself as a leader in financial technology. PayNow, introduced in 2017, allows users to transfer funds instantly using a mobile number or national ID. SGQR, launched in 2018, unified multiple QR payment systems into a single national standard.
The government’s strategy is aligned with broader regional efforts to create interoperable cross-border payment systems in Southeast Asia. In November 2023, Singapore and Malaysia launched real-time QR code payments between the two countries, part of an ASEAN-wide initiative.
Analysts say the new agency could help Singapore strengthen its influence in shaping regional payment standards.
What Experts Are Saying
Financial experts welcomed the move but noted challenges. Assoc. Prof. Lawrence Loh, Director of the Centre for Governance and Sustainability at the National University of Singapore, told local media: “Centralising governance improves oversight, but it will require careful balancing of innovation with regulation. Too much control may stifle experimentation in the private sector.”
At the same time, consumer groups have raised questions about data privacy and security. MAS stated that safeguards will remain in place and that public trust is a key priority in the design of the new system.
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FAQs About New Agency to Oversee Cash and Support Schemes
Will PayNow still work as usual?
Yes. MAS has confirmed that existing services such as PayNow and GIRO will continue without changes during the transition period.
Who will run the new agency?
The new entity will be a not-for-profit company with governance oversight from MAS and senior representatives from Singapore’s banking sector.
When will the new agency be operational?
The organisation is expected to be fully operational by the end of 2026.
Will this affect cross-border payments?
In the long term, the agency is expected to strengthen Singapore’s role in developing regional payment links, but no immediate changes are planned.
What about data privacy and security?
MAS has pledged that existing safeguards will remain and that consumer trust will be a central focus of the new system.
