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TerraPay Gets Payments License From Singapore’s Central Bank

TerraPay Gets Payments License From Singapore’s Central Bank

Money transfer firm TerraPay received a major payment institution license in Singapore.

The approval by the Monetary Authority of Singapore means that TerraPay is either licensed or approved in 30 markets around the world, according to a Monday (April 8) press release.

“As the heart of thriving international trade and commerce, Singapore has always been a strategic location for TerraPay,” the company said in the release. “Leveraging the position of the country as Southeast Asia’s financial hub, the company will capitalize on this new license to strengthen existing and new partnerships in the region while also accelerating” its presence in the Asia-Pacific region.

TerraPay said the approval from MAS will let it offer services such as account issuance, domestic and cross-border money transfers, merchant acquisition, and eMoney issuance, “catering to the growing demand for efficient and transparent payment solutions in the region.”

Meanwhile, the Bank for International Settlements and seven central banks are testing tokenization to improve cross-border payments.

Successfully competing in international B2B markets “requires a nuanced understanding of local customs and regulatory requirements, as well as the cultural context behind global partners’ behaviors and expectations,” PYMNTS reported Thursday (April 4). “Understanding the needs and preferences of international buyers and suppliers can help streamline the B2B payments experience, enhancing the likelihood of repeat business and referrals.”

The PYMNTS Intelligence report “Cross-Border Sales and the Challenge of Failed Payments” showed that faulty cross-border payments cost U.S. merchants at least $3.8 billion in sales during 2023.

Eighty-two percent of merchants said they find it difficult to determine the causes of failed payments. Merchants with a high cross-border focus saw an average failure rate of 11.4%, while those with a lower cross-border focus experienced a failure rate of 10.1%.

“Once the payments fail, other headaches may surface,” PYMNTS wrote last month. “Sixty-seven percent of respondents identified customer recovery as being a challenge. Sixty-two percent said the reputational damage that follows is problematic. Increased workloads after the fact are an issue for 59% of respondents.”