Financial technology company TerraPay has achieved a significant milestone by obtaining a Major Payment Institution (MPI) license in Singapore. This accomplishment grants TerraPay a wider berth in the Singaporean financial market, allowing it to offer a comprehensive suite of services. This post will look closer at what this means for TerraPay and, more importantly, for you, the user.
A look at the MPI license
The Monetary Authority of Singapore (MAS) issues MPI licenses to firms with a proven security and stability track record. Obtaining this license signifies that TerraPay adheres to stringent regulatory standards, ensuring the safety of your financial transactions.
So, what does an MPI license unlock for TerraPay? Here’s a breakdown of the expanded offerings:
- Account issuance: TerraPay can now issue accounts within Singapore. This could potentially lead to new account types tailored for migrant workers or the underbanked, promoting financial inclusion.
- Domestic and cross-border money transfers: This newly obtained authorization allows TerraPay to facilitate seamless transfers within Singapore and across borders. This can benefit individuals with families or business interests overseas, allowing faster and more cost-effective transactions. Studies by the World Bank indicate that the global average cost of sending remittances is around 7%, highlighting the need for competitive money transfer services.
- Merchant acquisition: Businesses in Singapore can now partner with TerraPay to accept payments, widening the reach of these businesses and offering customers more payment options.
- E-money issuance: TerraPay can now potentially issue e-money within Singapore. E-money, also known as digital wallets, allows for cashless transactions and easier online payments. According to a report by Statista, the global e-wallet market is expected to reach over $18 trillion by 2025, showcasing the growing demand for this convenient payment method.
TerraPay’s growth trajectory in the APAC region
TerraPay’s acquisition of the MPI license in Singapore signifies its commitment to expanding its presence in the Asia-Pacific (APAC) region. With 11 licenses and 19 regulatory approvals across 30 markets, TerraPay is well-positioned to become a major player in the region’s financial landscape. This growth can translate into benefits for users:
- Increased competition: More players in the market can lead to more competitive pricing and better service for consumers.
- Enhanced innovation: A dynamic financial technology landscape promotes innovation, potentially leading to the development of new and more user-friendly financial products.
- Financial inclusion: As TerraPay expands its services, it has the potential to reach unbanked or underbanked populations, promoting greater financial inclusion across the APAC region.
What this means for you
TerraPay’s MPI license in Singapore is a positive development for the region’s financial services sector. It opens doors for a wider range of financial products and services, potentially leading to greater convenience, affordability, and financial inclusion for you, the user. As TerraPay grows, keep an eye out for new offerings and services that streamline your financial transactions and empower you to manage your money more effectively.
