Singapore Fintech Association launches voluntary payments code

The Singapore FinTech Association has published a voluntary code of conduct that asks payment service providers to show customers the full cost of every transaction before they commit. The Payments Industry Code of Conduct, launched August 8, covers pricing transparency, fraud prevention frameworks, data handling, and operational resilience for licensed and exempt PSPs operating under the Payment Services Act 2019.

"Payments touch almost every part of daily life in Singapore, and people deserve to know exactly what they are paying and what protection they have," SFA President Holly Fang said at the launch.

What the code requires

The code applies to holders of major payment institution, standard payment institution, or money-changing licenses, plus exempt payment service providers. It does not cover digital payment token services.

Adherents commit to displaying the principal amount, transaction fees, applicable exchange rate, any markup, and the final amount before a customer confirms a transaction. They cannot add mandatory charges mid-transaction or describe a service as "free" or "zero fee" if the total cost includes an exchange rate markup, unless that cost is clearly disclosed.

“A mark-up hidden in the exchange rate is still a cost to the customer and should be displayed transparently. When pricing is presented clearly and consistently across payment providers, consumers can make informed choices and competition is driven by real value.”

— SK Saraogi, CEO of Wise Asia Pacific and outgoing Co-Chair of the SFA Payments Subcommittee

The code also mandates documented fraud prevention frameworks, including regular risk assessments, transaction monitoring, clear escalation procedures, and ongoing user education on common scams. Adherents must identify and stress-test critical systems: ledger and wallet systems, payment gateways, customer-facing APIs, and authentication services.

Voluntary, not regulatory

Adherence is based on self-assessment. A PSP becomes a "Code Adherent" by reviewing its policies, processes, and systems against the standards and then publicly declaring its adherence. That declaration must state the year the self-assessment was conducted and expires after one year.

The code complements, rather than replaces, existing obligations under the Payment Services Act and Monetary Authority of Singapore regulations. It sets a floor, not a ceiling.

"By setting a consistent baseline while giving providers room to innovate, it will help businesses put these principles into practice and give customers greater confidence in the services they use," said Jeremy Tan, CEO of Liquid Group and Co-Chair of the SFA Payments Subcommittee.

What it covers

• Pricing and transparency: full cost disclosure before transaction confirmation
• Fair marketing and advertising: no misleading "free" claims when hidden costs exist
• Fraud prevention and consumer protection: documented frameworks, monitoring, escalation
• Card dispute liability: clear procedures for handling disputes
• Data privacy and security: standards for customer data handling
• Operational resilience: stress testing of critical payment infrastructure

What comes next

The SFA said it will regularly review and update the code as Singapore's payments industry evolves. The association plans to welcome new market participants and providers over time, suggesting the code may expand in scope as adoption grows.

For fintech teams operating cross-border payment services in Singapore, the practical question is whether major PSPs adopt quickly enough to make non-adherence a competitive liability. The code's one-year renewal cycle means the first wave of public declarations should appear by mid-2027.

Source: Crowdfund Insider