Consultation Paper on Strengthening Participation in SGQR

On 26 September 2022, the Infocomm Media Development Authority (“IMDA”) and the Monetary Authority of Singapore (“MAS”) published a consultation paper on strengthening participation in the Singapore Quick Response Code Scheme ("SGQR").

The SGQR was introduced in September 2018 by the IMDA and the MAS, together with the SGQR Taskforce, as the world’s first standard for a unified payment quick response (“QR”) code which allows multiple payment schemes to be combined into a single SGQR label.

The consultation paper seeks views on the IMDA’s and the MAS’ proposals to:

• introduce a set of guidelines ("SGQR Guidelines") which covers the MAS' expectations on all Relevant Merchant Acquirers through their participation in SGQR;
• introduce a fee structure model for SGQR members, and
• conduct regular batched onboarding exercises for merchant acquirers who wish to join SGQR.

The SGQR Guidelines

To minimise QR code payment fragmentation at merchant shopfronts, the proposed SGQR Guidelines will require all major payment institutions (as defined in the Payment Services Act 2019 (“PS Act”)) and exempt payment service providers, i.e. “Relevant Merchant Acquirer”, that provide merchant acquisition services to any merchant through a static QR code at the merchant’s place of business, i.e. “Relevant Merchant Acquisition Service”, to at all times be an SGQR member. Standard payment institutions (as defined in the PS Act) will however be excluded from the scope of the SGQR Guidelines, i.e. standard payment institution will not be required to participate in SGQR.

The IMDA and the MAS are also proposing to add a new rule to the existing rules (the existing relevant governance, membership and operating rules, and branding and presentment protocols relating to the SGQR) to require SGQR members to provide the Relevant Merchant Acquisition Service by way of an SGQR label only and not with proprietary static payment QR code labels

If there is broad support for the SGQR Guidelines and the revised rules, the IMDA and the MAS are proposing for the SGQR Guidelines and the revised rules to take effect on 1 December 2023, which equates to a transition period of at least three months from the publication of the response to this consultation which is targeted for mid-2023. The IMDA and the MAS are also proposing to give existing SGQR members at least six months from the date that the SGQR Guidelines and revised rules take effect, to remove all proprietary static QR code payment labels at their merchants’ physical places of business and replace them with SGQR labels. 

Fee Structure Model

The Banking Computer Services Pte. Ltd. (“BCS”) and the Financial Sector Development Fund, administered by the MAS, have fully subsidised the development and operating costs of the Central Repository. Accordingly, SGQR members have participated in the SGQR without any incurring any membership fees in the first five years of the scheme.

As the IMDA and the MAS are of the view that SGQR has matured as a scheme, they are proposing to introduce a fee structure model for SGQR members to ensure that the SGQR is financially self-sustaining in the long term. In addition, it is proposed for the BCS to perform a one-time fee collection from SGQR Members who have joined prior to the date the revised rules are implemented (currently proposed to be 1 December 2023). 

Regular batched onboarding exercises for merchant acquirers who wish to join SGQR

The IMDA and the MAS are proposing for BCS to conduct regular batched onboarding exercises to onboard merchant acquirers who wish to join SGQR, with such onboarding exercises being held at least semi-annually. Newly licensed Relevant Merchant Acquirers are expected to register as a SGQR member in the next available onboarding sequence. 

Timelines

The consultation closes at 1159 PM on 28 October 2022 with the responses to the consultation paper expected to be published by mid-2023.

The MAS expects the SGQR Guidelines to take effect on 1 December 2023.