MAS directs Wirecard to cease payment services in Singapore

By Edil Corneille

The Monetary Authority of Singapore (MAS), the country’s central bank, has directed Wirecard entities in the country (Wirecard SG) to cease their payment services and to return all customers’ funds by October 14, 2020.

MAS has been monitoring the impact of Wirecard AG’s insolvency on the ability of Wirecard SG to continue providing payment services in Singapore. MAS has closely engaged Wirecard SG in recent months to safeguard the interest of Wirecard SG’s customers. This includes requiring Wirecard SG to keep customers’ funds in banks and to assist customers to switch to alternative service providers.

Wirecard SG has apprised MAS that it is unable to continue providing payment processing services to a significant number of merchants. MAS has assessed that it is in the interest of the public for Wirecard SG to cease its payments services and promptly return all customers’ funds. This provides the greatest certainty to customers on their appropriate course of action, including seeking alternative service providers.

With the cessation of Wirecard SG’s payments services, credit card payments at merchants using Wirecard SG’s services, as well as usage of pre-paid cards issued by Wirecard SG, will be affected. Other forms of e-payments such as NETS, PayNow and SGQR continue to be available. Customers who have not yet made alternative arrangements have been encouraged to do so promptly.

In June, MAS had informed that Wirecard entities had complied with MAS’ directions to hold customers’ funds in segregated accounts with banks in Singapore. MAS mentioned at that time that it was closely monitoring the operations of the company.

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