SINGAPORE: The Monetary Authority of Singapore (MAS) has directed e-commerce platform Qoo10 to suspend all payment services regulated under the Payment Services Act, effective today. This decision follows a series of complaints from merchants about delayed payments.
According to a statement from MAS, the regulatory body and other government agencies received numerous complaints from Qoo10 merchants between April and August this year.
Merchants alleged that Qoo10 had delayed making payments for sales conducted on the platform. In response, authorities asked Qoo10 to address these concerns. While some disputes were resolved, a significant number of cases remain unsettled.
Earlier this month, Qoo10 informed the MAS that a substantial number of merchants were still awaiting payment.
This prompted MAS to urge the company to take necessary measures to meet its obligations, including engaging a third-party payment service provider to ensure timely payouts.
Despite these recommendations, Qoo10 has been unable to assure that it has the necessary resources and infrastructure to meet its payment obligations to merchants on time.
As a result, the MAS has now ordered Qoo10 to halt its payment services, citing concerns over the company’s ability to fulfil its financial responsibilities.
However, Qoo10 will still be permitted to repay the outstanding amounts owed to merchants. The suspension applies only to new customer transactions, meaning that Qoo10 is prohibited from processing any fresh payments on its platform.
The suspension does not affect Qoo10’s ability to operate as an e-commerce platform. However, the company may be required to hire a third-party payment processor to handle transactions moving forward.
The MAS has stated that it will review the ban once Qoo10 can demonstrate that it has resolved the issues surrounding delayed payments and can continue to protect the interests of merchants and consumers in Singapore.