Payment Services Act: The case for reviewing e-wallet caps

NOT all Singaporeans will notice when the Payment Services Act takes effect on Jan 28. That masks the momentous nature of the new law, for it will have a large, long-term impact, in an area they care deeply about - how their money is managed.

Fintech companies have discussed the law with the Monetary Authority of Singapore over the past two years. Many, including TransferWise, which I co-founded, are optimistic about its broad direction. But many also have serious concerns about specific rules, including the S$5,000 cap on what Singaporeans can hold with fintechs.

Passed last year, the Act changes fundamental thinking by introducing activity-based regulation. This progressive philosophy - adopted by more and more central banks throughout the developed world - says: companies should be regulated on what they do, not who they are.