The Monetary Authority of Singapore (MAS) has ordered Qoo10 to suspend payment services under the Payment Services Act 2019 (PS Act) as of today. This directive follows numerous customer complaints about delayed payments to merchants on Qoo10’s e-commerce platform.

Initially not required to have a license while its application was under review, Qoo10 has not yet secured a license from MAS. Nevertheless, the company was allowed to continue offering payment services until the recent spike in complaints prompted intervention.

Between April and August 2024, MAS received multiple grievances from customers concerning significant issues with payment processing. In September 2024, Qoo10 informed MAS of expected spayment delays affecting several merchants.

As a result, MAS engaged with Qoo10’s management to address these delays and voice concerns about the company’s capability to fulfil its financial commitments. Qoo10 was given multiple opportunities to rectify these issues and provide assurance to MAS, but it has yet to offer sufficient guarantees.

While Qoo10 may continue to process payments for existing claims, it cannot assume new payment obligations.

The company may seek to partner with a third-party payment provider to facilitate transactions on its e-commerce platform. In addition, merchants impacted by the payment delays are encouraged to report their concerns directly to Qoo10.

If issues remain unresolved, they can pursue established commercial dispute resolution processes, including civil claims.

The PS Act, which regulates payment services in Singapore, came into effect on 28 January 2020, covering various payment functions such as merchant acquisition services, account issuance services, and money transfer services.