Stored Value Facilities
Overview and Regulations
A Stored Value Facility (SVF) is a form of prepaid electronic cash or card that can be used within the system of the SVF issuer. The SVF issuer is known as the holder of the stored value. Some electronic SVFs are also known as e-money. Usage of SVFs usually does not require Personal Identification Numbers (PINs) or signatures. The Payment Systems (Oversight) Act (PS(O)A) and its related regulations governs the issuance and management of SVFs. Please access these regulations via the Key Resources links below.
An SVF may be a single purpose scheme or a multi-purpose one. A single purpose SVF is an SVF that is, or is intended to be, used for payment only of goods or services, or of both goods and services, provided by the holder of that stored value facility. Note that single purpose SVFs are exempt from certain sections of the PS(O)A.
When the stored value outstanding in a multi-purpose SVF scheme exceeds a prescribed threshold limit set in the PS(O)A, the SVF is regarded as a widely accepted SVF (WA SVFs). Currently the threshold limit stands at $30 million. The approval of MAS is required for the continued operation of this type of SVF scheme. The PS(O)A defines WA SVFs as a stored value facility -
(a) in which the stored value is held by an approved holder; and
(b) in respect of which an approved bank has undertaken to be fully liable for the stored value.
In the event that an SVF becomes a relevant SVF, the holder is also required to comply with the PSOA-N02: Notice to Holders of Stored Value Facilities on Prevention of Money Laundering and Countering the Financing of Terrorism. The definition of a relevant SVF can be found within this notice. This notice, issued in November 2007, requires holders to implement “know-your-customer” measures to establish and verify the identity of users.
Approved WA SVFs
As of December 2016, four SVFs are approved as WA SVFs by MAS:
- “EZ-Link Card” provided by EZ-Link Pte Ltd, approved on 31 January 2007;
- "NETS CashCard" provided by Network for Electronic Transfers (Singapore) Pte Ltd (NETS), approved on 31 January 2007;
- "NETS FlashPay" provided by NETS, approved on 9 April 2010; and
- "CapitaVoucher" provided by CapitaLand Voucher Pte Ltd, approved on 2 December 2016.
Users, Operators and Issuers of SVF
For users or consumers of SVFs, a MoneySense article is available that provides an overview of SVFs. Please see the link below, “Introduction to Stored Value Facilities: Making sense of stored value facilities used to pay for goods or services rendered”.
Operators of SVFs and holders of stored value may wish to refer to MAS’ Guidelines on Stored Value Facilities. These guidelines promulgate best practices that that SVF holders are encouraged to adopt for their schemes.