KPay wins Singapore payment licence in-principle approval

KPay has received in-principle approval from the Monetary Authority of Singapore for a Major Payment Institution licence for its Singapore subsidiary, KPay Merchant Service.

The approval marks a regulatory milestone for the fintech group in one of its dual headquarters and supports its expansion in Singapore, where it says it now serves more than 10,000 small and medium-sized merchants.

If final approval is granted once the regulator's conditions are met, the licence would allow KPay to offer a broader range of regulated payment services in Singapore, including merchant acquisition and domestic and cross-border money transfers.

KPay launched operations in Singapore in 2022 and says it has since built its local governance, risk management and compliance structures alongside its merchant business. It presents that work as a model for how it intends to operate in other regulated markets across Asia Pacific.

The group says it serves more than 95,000 merchants across Asia Pacific, including in Australia, Hong Kong, Japan and Singapore. In Singapore, it is particularly focused on food and beverage and retail merchants.

Singapore base

According to KPay, its local offering combines in-store payments, point-of-sale systems and merchant data tools. It says merchants in Singapore should also benefit from faster onboarding, improved settlement and funding reporting, and an upgraded merchant portal following the latest development.

The approval does not amount to a full licence. The Monetary Authority of Singapore can issue the licence only after specified conditions are fulfilled and provided there are no material adverse developments affecting the applicant.

The licence process is significant because Singapore has become an important base for payments and fintech groups looking to operate across multiple Asian markets under close regulatory oversight. For KPay, the city-state also serves as a test bed for the standards and systems it wants to apply elsewhere.

Davis Chan described the approval as a sign of broader internal development across the group.

"The In-Principle Approval for a Major Payment Institution licence from the MAS holds significant meaning for KPay's operations. Beyond regional recognition, it demonstrates the maturity of our group-wide compliance and operational standards, and reinforces our ability to deliver consistent, advanced payment and merchant solutions across markets," said Davis Chan, Co-founder and Chief Executive Officer of KPay.

He said the company's approach is to build trust locally in each market.

"At KPay, we believe trust cannot be exported - it has to be earned, market by market - so we grow local and stay local in every market. This means building strong local teams, understanding the needs of local merchants and investing in local service and support capabilities," Chan said.

He added that Singapore plays a broader role within the group.

"Singapore is, for us, more than a market. It is the model. The standards we have built here, and the speed at which we serve merchants, define what KPay aspires to deliver in every market we enter. As we continue to expand across Asia Pacific and beyond, Singapore will remain the playbook that guides our regional direction," Chan said.

Local focus

Keith Chen, General Manager of Singapore at KPay, said the in-principle approval should help the local team strengthen support for merchants.

"We are pleased to have received In-Principle Approval from the MAS. This milestone enables our local team in Singapore to provide even stronger support to local merchants. We are grateful for the community's continued trust and remain committed to delivering smart, merchant-friendly technology," Chen said.

He also addressed the remaining regulatory steps.

"KPay looks forward to operating as a licensed Major Payment Institution upon satisfying the remaining conditions. The group deeply values the forward-looking regulatory environment MAS has fostered - one that encourages responsible innovation while upholding strong standards of consumer protection and financial integrity," Chen said.

Chen said the company would continue to align its internal standards with regulatory expectations in Singapore.

"We remain fully committed to the highest standards of compliance and governance, in close alignment with MAS's expectations and Singapore's digital economy ambitions - ensuring that the standards Singapore demands are the standards KPay brings to the wider region," he said.

KPay raised USD 55 million in a Series A funding round in 2024, according to the company, as it sought to expand its merchant payments and business tools platform across the region.