THE PAYMENT SERVICES ACT – A KEY DEADLINE FOR STORED VALUE FACILITIES IS 13 JANUARY 2020
In summary, stored value facilities (“SVFs”) are a form of pre-paid electronic cash or card that can be used for payments. Businesses like Grab, PayPal and Xfers all have SVF operations as part of their businesses. The provision of stored value facilities and stored value will be regulated under the PS Act as account issuance service and e-money issuance service. However, until the PS Act becomes effective, SVFs are regulated under the Payment Systems (Oversight) Act (the “PS(O)A”). Therefore, any payment service provider (“PSP”) that intends to (1) conduct activities that would be regulated as an SVF today and (2) take advantage of the PS Act’s 12-month exemption from licensing for entities carrying on business before 28 January 2020, should ensure that they comply with the PS(O)A on 27 January 2020 (the “PS Act Deadline Date”). While complying with the PS(O)A is not particularly difficult, it is not something that you should look at for the first time on the PS Act Deadline Date.
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