Nature of Point-of-Sale (POS) Terminals

How are POS terminals regulated?

Providers of POS terminals as likely regulated as service providers of merchant acquisition services under the Payment Services Act.

According to MAS (Explanatory brief)
last revised on 02 November 2020

"MAS defines merchant acquisition service as "Providing merchant acquisition service in Singapore where the service provider processes payment transactions from the merchant and processes payment receipts on behalf of the merchant. Usually the service includes providing a point-of-sale terminal or online payment gateway."

Note that all providers of payment services must obtain a licence to provide any of the services covered by the Payment Services Act, including merchant acquisition.

FinReg business tip

POS terminals allow for consumers to make transactions most commonly in retail stores. They likely fall under the merchant acquisition service activity under the Payment Services Act.