Boosting Transparency and Trust: Singapore FinTech Association Launches Payments Code of Conduct
In this article (6)
The Singapore FinTech Association (SFA) has introduced a voluntary code of conduct for payment service providers (PSPs). This sets new industry standards intended to bolster transparency, protect consumers, and build trust within the Singaporean payments sector.
The Payments Industry Code of Conduct is accessible to a range of organizations. These include holders of major and standard payment institution licenses, money-changing licensees, and exempt payment service providers providing regulated fiat currency payment services in line with Singapore’s Payment Services Act.
Increasing Transparency and Consumer Protection
The code sets robust guidelines across several crucial areas, which include pricing transparency, fair advertising, fraud prevention, card dispute liability, data protection, and operational resilience.
Companies who choose to adhere to the code are obliged to disclose the total cost of transactions upfront. This includes all fees, exchange rates, and mark-ups. The code discourages hidden fees and deceptive “zero-fee” advertising claims, while advocating for robust fraud prevention measures and more robust customer protections.
Adherence to the code is voluntary and based on self-assessment. Companies who opt to adopt the code can publicly declare their compliance for one year before undergoing a reassessment.
Enhancing Trust in Digital Payments
The SFA stated that the code is intended to supplement existing regulatory requirements under the Payment Services Act and the Monetary Authority of Singapore’s regulations, not replace them. As the payments industry evolves, the code will be regularly revised.
“Payments play a significant role in the daily lives of people in Singapore. Consumers have a right to know exactly how much they are paying and what protections they have,” stated Holly Fang, president of the Singapore FinTech Association. “From an industry perspective, it elevates the level of trust, which is the foundation of successful businesses.”
According to SK Saraogi, the outgoing co-chair of the SFA Payments Subcommittee and CEO of Wise Asia Pacific, increased pricing transparency will empower consumers to make better-informed decisions. This will also encourage fair competition among payment providers.
Jeremy Tan, CEO of Liquid Group and co-chair of the SFA Payments Subcommittee, believes this initiative will boost confidence in digital and cross-border payments. It will also solidify Singapore’s status as a global leader in payments and fintech.
Questions & Answers
What is the purpose of the Payments Industry Code of Conduct?
The code aims to bolster transparency, consumer protection and trust within Singapore’s payments sector.
Who can adhere to this new code of conduct?
The code is accessible to organizations such as holders of major and standard payment institution licenses, money-changing licensees, and exempt payment service providers operating under Singapore’s Payment Services Act.
What does the code mandate for participating companies?
The code requires these companies to disclose all transaction costs upfront, discourage hidden fees and deceptive advertising claims, and promote robust fraud prevention measures and more robust consumer protections.