Singapore-based Volopay gets MAS’ in-principle approval for major payment institution licence

SINGAPORE-BASED fintech startup Volopay has received an in-principle approval for a major payment institution licence from the Monetary Authority of Singapore (MAS).

This means that Volopay’s payment services – account issuance, e-money, domestic money transfer and cross-border money transfer – will be regulated under the Payment Services Act.

The startup noted the approval is an “incredible business outcome” as that will enable it to strengthen its foothold and services in Singapore.

“The licence will allow us to operate an end-to-end stack including customer onboarding, front-end digital experience, distribution network and direct card issuance capabilities with the help of network and schemes,” said Rohit Bhageria, founding member of Volopay.

“With this, we can significantly boost our net profit margins and make Singapore an important and key business unit, entirely profitable on a standalone basis by the end of 2023 or mid-2024,” he added.

Launched in 2020, Volopay initially only served Singapore and Australia. But early last year, it announced its Series A funding alongside a new market launch into India, as well as inclusion into Visa’s fast track programme. It is a Visa partner. It also entered Indonesia in the same year.