Singapore-based Volopay gets in-principle nod from MAS for payment licence
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The in-principle approval from MAS means that Volopay’s payment services will be regulated under the Payment Services Act.
ST PHOTO: JASON QUAH
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Singapore – Singapore-based fintech start-up Volopay has received in-principle approval for a major payment institution licence from the Monetary Authority of Singapore (MAS).
This means that Volopay’s payment services – account issuance, e-money, domestic money transfer and cross-border money transfer – will be regulated under the Payment Services Act.
The major payment institution licence is one of three classes of payment service provider licences issued by MAS, the other two being the money-changing licence and the standard payment institution licence.
With the MAS nod, Volopay can now provide a range of payment services above specified thresholds. For example, it can handle $3 million monthly transactions for any payment service, other than e-money account issuance and money-changing services.
Volopay said the approval is an “incredible business outcome” as it will enable the start-up to strengthen its foothold and services in Singapore. “The licence will allow us to operate an end-to-end stack, including customer onboarding, front-end digital experience, distribution network and direct card issuance capabilities with the help of network and schemes,” said Mr Rohit Bhageria, founding member of Volopay. “With this, we can significantly boost our net profit margins and make Singapore an important and key business unit, entirely profitable on a stand-alone basis by the end of 2023 or mid-2024.”
Launched in 2020, Volopay served customers only in Singapore and Australia initially. But early last year, it announced its Series A funding alongside a new market launch into India, as well as inclusion into Visa’s fast-track programme. A Visa partner, it also entered Indonesia in the same year. THE BUSINESS TIMES
