In February 2018, the Monetary Authority of Singapore (MAS) launched a public consultation on proposed guidelines to protect users of electronic payments (e-payments). The proposed guidelines aim to encourage wider adoption of e-payments by setting standards on the responsibilities of financial institutions and e-payment users. Under the new guidelines, individuals and micro-enterprises that hold e-payment accounts can expect financial institutions to provide timely notifications of all e-payment transactions. Financial institutions will be expected to set clear resolution processes for unauthorized or erroneous payment transactions. The guidelines also set out the responsibilities of e-payments users, including the good security practices they should adopt to protect their passwords and e-payment accounts. The consultation was closed on 16 March 2018 and the final draft of the guidelines were published in July, 2018.
Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.
Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.
The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2