The Monetary Authority of Singapore and the Association of Banks in Singapore will set up a new entity to consolidate the administration and governance of Singapore’s various national payment schemes.

With the move towards cashless payment systems for both businesses and consumers, there is a growing list of various payment systems adding to a growing alphabet soup.

They include Fast And Secure Transfers (FAST), the Inter-bank GIRO System, PayNow and the Singapore Quick Response Code (SGQR).

While these various payment systems are popular in their own right, what is less known is that they are administered by different entities.

For example, the Singapore Clearing House Association (SCHA) is in charge of FAST, GIRO and also the Singdollar and US dollar cheque clearing systems; ABS administers PayNow, eGIRO and Electronic Deferred Payment.

Meanwhile, SGQR, developed to support payments using mobile devices, is jointly under MAS and the Infocomm Media Development Authority (IMDA), which regulates the telco industry.

"The consolidation of the administration and governance of these schemes under a single entity will enhance coordination and decision-making across national payment schemes," reads a joint statement by MAS and ABS on Feb 12.

The new structure will enable Singapore's financial institutions and payment service providers to "better harness opportunities in global payments and spur further growth and innovation in Singapore’s payments sector."

This new entity, which has yet to be named, will be governed by senior representatives from MAS and the financial services industry.

Industry committees will be formed under the new entity to engage banks, payment services providers and key user groups such as industry and business associations to support strategy development. 

There will be no changes to the operations and scheme rules.

“Consolidating the administrative and governance responsibilities of all national payment schemes under a single entity will strengthen the governance of these schemes and contribute towards greater payments resilience and innovation," says MAS MD Chia Der Jiun.

"The new payments entity will enable us to rationalise our various payment rails, as well as provide a springboard to leverage technology in imagining the future of payments," says DBS CEO Piyush Gupta, speaking in his capacity as chairman of the ABS.

Jacqueline Loh, chairman of SCHA and deputy managing director for corporate development at MAS, says that this single entity will strengthen existing capabilities in the oversight of resilience and safety of the payment schemes. 

It will also ensure consistent implementation of national e-payment strategies across the various payment schemes. "SCHA is committed to see through the smooth transition to the new entity,” says Loh.

The transfer of SGQR scheme administration and governance to the new single entity will streamline the local payments landscape and deliver a more seamless experience for businesses and consumers, says Leong Der Yao, IMDA's assistant CEO, sectoral transformation.

"This transition will also open doors for greater collaborations with international digital wallets and financial institutions," he adds.