Relevant Document:
Media Release
The Monetary Authority of Singapore, or MAS, announced on Sept. 23 that it has directed Qoo10 Pte. Ltd., the parent entity of Qxpress, to suspend the provision of all payment services covered under the Payment Services Act 2019, or PS Act, in Singapore, effective immediately.
When the PS Act was introduced, existing payment service providers were exempted and could continue these services pending the review of their license applications by MAS. This is so that these services are not disrupted pending licensing. Qoo10 is not licensed by MAS, but was exempted and could continue conducting payment services while its licence application is being reviewed.
The MAS received several customer complaints against Qoo10 for delays in processing payments between April and August. Qoo10 was asked to address these complaints, and while some were resolved, others remained outstanding. In early September, Qoo10 informed MAS that a significant number of merchants will face payment delays.
To date, Qoo10 has been unable to provide sufficient assurance that it had the resources and systems to meet its payment obligations to merchants in a timely manner.
The authority noted that the suspension does not prohibit Qoo10 from operating its e-commerce platform, but it may need to engage a third-party payment service provider for transactions on this platform.
The MAS said it will review the suspension when Qoo10 is able to satisfy the MAS of its ability to resolve the payment delays and safeguard the interest of its customers in Singapore on an ongoing basis.