SINGAPORE: Loyalty and rewards platform ShopBack has received a major payment institution licence from the Monetary Authority of Singapore (MAS).
Following the development, the company said it plans to improve its payment offering and strengthen merchant partnerships in Singapore and beyond.
ShopBack gives customers cashback for purchases made from retailers on the platform. It facilitates more than half a million transactions every day, and has seen its popularity grow as cost-conscious shoppers look for ways to lower their bills.
The company has been operating ShopBack Pay since 2022, which allows users to make payments to online or physical stores.
A major payment institution licence puts ShopBack Pay under formal regulatory oversight, allowing it to run various services without limits on transaction volumes.
The licence supports the operation of account issuance, domestic money transfer and merchant acquisition services.
Merchants on ShopBack will also be able to directly accept payments from customers.
Payment services GrabPay and ShopeePay, as well as the Singapore branch of crypto exchange OKX, also operate on major payment institution licences.
“Receiving this major payment institution licence marks a foundational milestone for ShopBack,” said Huang Huanmin, the company’s acting chief financial officer and chief of staff.
“It reflects MAS’ trust in our ability to operate responsibly and gives us the infrastructure to scale ShopBack Pay in a way that’s smarter, faster and more secure.”
ShopBack said the licence will allow it to expand its network of merchants and streamline settlement processes. It added that it is also in a better position to integrate emerging payment technologies.
Headquartered in Singapore, ShopBack was co-founded in 2014 by Henry Chan and Joel Leong, who became friends while studying at the National University of Singapore. — The Straits Times/ANN
