SINGAPORE — In a move that will further consolidate Singapore as one of the major fintech hubs, the Monetary Authority of Singapore (MAS) has granted major payment institution (MPI) licenses to two global players earlier this week; UK-based cross-border payments specialist TerraPay and Canadian fintech leader Nuvei.
The awarding of an MPI license in Singapore to both TerraPay and Nuvei underscores the company’s ambitions for regional expansion within the Asia-Pacific market. These licenses will enable them to offer a comprehensive range of payment services in Singapore, including domestic and cross-border money transfers, as well as merchant acquisition services.
In a media statement this week, TerraPay, the first to be issued with the MPI said that with the approval from MAS it is now set to redefine the payment landscape as it caters to the growing demand for efficient and transparent payment solutions in the region.
“Being granted this license by the Monetary Authority of Singapore is a big milestone for TerraPay, especially as we expand our reach and services across geographical borders. This achievement underscores our ongoing dedication to upholding the highest standards of regulatory compliance and reinforces our commitment to providing transparent, frictionless, and simplified payment services.
“As we continue to grow, we’re excited to prioritize the development of strategic cross-border payment partnerships and innovative solutions to help simplify global money movement,” said Sheshagiri Malliah, Managing Director, Terra Payment Services Pte Ltd.
TerraPay now has 11 licenses and 19 regulatory approvals in 30 markets, globally. The company is hoping that it will be able to leverage on Singapore as Southeast Asia’s financial hub, and capitalize on this new MPI license to strengthen existing and new partnerships in the region while also accelerating their APAC presence.
MAS granted MPI license to Nuvei a day later and the company said that it will be able to extend its global reach and enable customers in the region to benefit from the additional service.
Nuvei explained that their payments platform allows businesses to optimize operating costs and boost conversion rates. This can be done by consolidating their payments solutions, maximizing payments acceptance, minimizing risk, and enhancing the consumer payment experience.
“Securing this MPI license is another significant milestone as we continue accelerating our growth in APAC.
“This license enhances our service offering for customers in Singapore by enabling us to provide additional payment solutions, including international money transfers through direct card payouts. It also provides another validation of our steadfast commitment to optimizing the payment experience for businesses and consumers throughout this critically important region,” said Philip Fayer, Chair and CEO, Nuvei.
The Canadian fintech company is ramping up its presence in the Asia-Pacific region, as they aim to support businesses looking to scale both locally and cross-border.
Nuvei modular payments platform enables clients to securely connect with customers in over 200 markets worldwide through a single integration, accepting 680 alternative payment methods and offering acquiring in over 50 markets.
The Canadian fintech firm made headlines recently after private equity giant Advent International announced a US$6.3 billion all-cash deal to acquire the company.
The Ryan Reynolds-backed firm will become private under Advent International’s ownership, with shareholders receiving US$34 per share in cash. This buyout marks a significant development for Nuvei, following its initial public offering just four years ago.
Under the terms of the buyout agreement, Nuvei CEO Fayer will hold roughly 24% ownership, while investment firms Novacap and CDPQ will control approximately 18% and 12% of the company, respectively.
Notably, Nuvei’s leadership team will remain intact, with Fayer continuing to lead the business in all aspects of its operations from its Montreal headquarters.
This structure ensures continuity for Nuvei as it transitions to private ownership, with key stakeholders and current leadership team continuing in the company following the conclusion of the transaction.