Singapore (VNA) – Singapore is opening up access to the payment rails for non-bank e-wallet players that meet the necessary risk-management standards, according to managing director of the Monetary Authority of Singapore Ravi Menon.

Eligible non-bank financial institutions will have direct access to the bankingsystem’s real-time retail payments infrastructure from February 2021. This willgive non-bank players – major payment institutions under the Payment ServicesAct – access to payment rails for them to offer PayNow services.

The access is via FAST, Singapore's round-the-clock electronic funds transferservice through which participating entities facilitate instant transfers ofSingapore dollar funds between customers.

There are currently 23 entities offering FAST services, and nine banks offeringPayNow.

The Direct FAST Working Group includes the NFIs of Grab Financial Group, LiquidGroup, MatchMove, Razer Fintech, Singtel Dash and TransferWise.

Menon said MAS' view is that the payments network is like a utility that existsto serve all customers.

But participating NFIs must meet threshold standards of risk management,including in technology risk management, and anti-money laundering standards.

He also said that NFIs' direct access to FAST and PayNow "closes thelast-mile gap" in Singapore's e-payments journey.

Direct connection to FAST and PayNow will enable users of NFI e-wallets to makereal-time fund transfers between bank accounts and e-wallets, as well as acrossdifferent e-wallets.

Currently, most e-wallets require the use of debit or credit cards to top upfunds, and fund transfers between e-wallets are not possible.

However, businesses that partner any of the 23 FAST or nine PayNow banks ore-wallets - traditionally closed-loop ecosystems - will be able to receivereal-time payments from other users of e-wallets or mobile banking applicationsthat will be joining FAST or PayNow.

This will enable businesses to access a larger market of consumers than beforefor receiving e-payments instantly and seamlessly, said MAS.

FAST and PayNow have served the needs of most consumer and business users inSingapore. FAST transaction volumes averaged more than 12.5 million a month inthe third quarter this year while monthly transaction volumes for PayNowaccount for almost half of all FAST transactions./.