An upcoming back-up system between NETS and Singapore’s banks will allow customers to continue to make contactless payments at merchant point-of-sale terminals when one or more banks face service disruptions.
Monetary Authority of Singapore (MAS) managing director Chia Der Jiun says these “stand-in capabilities” will allow customers to continue making contactless payments “subject to a transaction limit”.
Speaking at the launch of MAS’s latest annual report on July 15, Chia says the central bank and financial regulator is giving “particular focus this year” to the resilience of retail payments services.
“MAS has been in discussion with NETS Group and the banks over the past year and they will soon launch stand-in capabilities for NETS electronic point-of-sales systems,” he adds.
MAS will next work with financial institutions to develop similar solutions for QR code payments, “which have been gaining traction as a mode of payment”, says Chia.
Guarding against scams
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Over the past year, Singapore’s banks have phased out SMS one-time passwords for digital token user account logins and authentication of card transactions.
“This makes it harder for scammers to fraudulently access customer accounts or validate unauthorised transactions,” says Chia.
Some major retail banks have also implemented pre-transaction warnings for large value transfers made via digital banking.
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According to Chia, this offers a “cognitive break” for individuals who may be victims of a scam, before they proceed with the transfer.
The Money Lock feature, launched by local banks in late 2023, limits the potential losses should a customer’s digital banking access be compromised.
As of May 31, at least 350,000 customers have signed up to use Money Lock and set aside close to $28 billion of savings, more than triple the numbers reported in MAS’s previous annual report, says Chia. “This is encouraging and we hope more customers will take advantage of this service.”
To combat evolving methods of scams, Singapore must “do better collectively as a society”, says Chia.
He lists a number of upcoming safeguards, including transaction surveillance and cooling-off periods.
Under the Shared Responsibility Framework, banks have implemented real-time fraud surveillance to detect rapid deductions of large sums from customer accounts. This came into effect on June 16.
As a result, customers can expect “some delays” in their payment transactions as banks may perform additional checks, says Chia.
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According to Chia, banks will also progressively introduce cooling-off periods for high-risk activities, such as increasing transaction limits or changing contact details. “This gives individuals who may be victims of scams an opportunity to reassess their actions and mitigate financial losses.”
MAS is also working with banks to enable the use of a FIDO-compliant hardware token (FHT) for higher-risk internet banking payments and transfers.
An FHT needs to be plugged into the device that an individual uses to approve a transaction. Doing so makes it difficult for scammers to remotely make unauthorised transactions, says Chia.
“Consumer engagements are being conducted to identify customer pain points in the adoption journey and how the transition can be made smoother. More details will be announced when ready,” he adds.
That said, each of these measures by MAS and the banking industry to fight scams will introduce more friction and delays for users, says Chia.
“While the industry will do its best to minimise the inconvenience and give time for customers to get used to the new measures, as a society we will have to make the choice for more security and less convenience,” he adds.
Read more about MAS’s FY2024/25 annual report and related announcements:
- MAS net profit rises to $19.7 bil in FY2024/25 with investment gains more than doubling y-o-y
- S’pore GDP growth ‘likely to slow’ in 2H2025 but core inflation ‘should remain subdued’: MAS
- MAS to further boost financial institutions' AI adoption and quantum readiness
- Singapore’s AUM grows 12% to $6.07 tril in 2024; net inflows rebound with 50% y-o-y growth
- S’pore’s financial sector growth to slow after ‘unusually strong’ years: MAS
- S’pore 2025 growth ‘expected to slow’ amid ‘challenging’, ‘uncertain’ trade environment: Gan
