MEPS+ is the Monetary Authority of Singapore’s real-time settlement system for large-value SGD transfers. Learn how it works and how it fits alongside Singapore’s other payment infrastructure
Key takeaways
- MEPS+ (MAS Electronic Payment System Plus) is Singapore’s real-time gross settlement (RTGS) system, operated by the Monetary Authority of Singapore
- Introduced as a replacement for the earlier MEPS system, it settles large-value SGD interbank payments and Singapore Government Securities transactions in real time
- Businesses don’t use MEPS+ directly. Instead Banks use it in the background when processing large-value SGD transfers between accounts at different Singapore banks
- MEPS+ sits alongside FAST, PayNow and GIRO in Singapore’s payment landscape, each optimised for different transaction types and values
Singapore’s payment infrastructure is one of the most sophisticated in Asia, with different systems handling different types of transactions across retail, wholesale and cross-border payments. MEPS+ is the wholesale layer, sitting at the top of this hierarchy and handling the largest-value SGD payments that move through Singapore’s banking system every day.
Most businesses interact with MEPS+ without realising, because banks use it in the background when processing large SGD wire transfers. Understanding how it works clarifies why certain payments feel instant and irrevocable while others take longer or can still be recalled.
This guide covers what MEPS+ is, how it operates, when Singapore businesses encounter it, and how it compares to the other digital payment systems in Singapore.
What is MEPS+?
MEPS+ stands for MAS Electronic Payment System Plus. It’s the Monetary Authority of Singapore’s real-time gross settlement (RTGS) system, used to settle two main types of transactions between banks and eligible financial institutions in Singapore:
- Large-value SGD interbank payments including corporate wire transfers, treasury operations, and financial market transactions.
- Singapore Government Securities (SGS) transactions which include the settlement layer for buying, selling and pledging Singapore Government bonds.
The system was launched in December 2006 as a modernised replacement for the earlier MEPS system. The upgrade brought enhanced risk management, improved liquidity management features, and better integration with international payment standards.
MEPS+ is a wholesale payment system, which means it serves the banking industry and eligible financial institutions rather than businesses or individuals directly. Direct MEPS+ participation is restricted to banks licensed by MAS and other approved financial institutions.
How does MEPS+ work?
MEPS+ operates on a real-time, gross basis. Understanding these two principles explains most of how the system behaves.
Real-time processing
Each transaction submitted to MEPS+ is processed immediately, as it arrives at the system. There’s no batching, no waiting for a settlement window, no end-of-day netting. When a bank submits a payment instruction to MEPS+, the settlement happens within seconds.
Gross settlement
Every transaction is settled individually, at its full value. MEPS+ doesn’t net multiple transactions against each other before settling. Gross settlement consumes more liquidity than netting-based systems (each transaction needs to be fully funded at settlement), but it delivers stronger risk protection.
Central bank money settlement
When MEPS+ settles a transaction, the receiving bank’s account at MAS is credited immediately, and those funds are as good as cash. This is why MEPS+ transactions are described as final and irrevocable, in most cases
SWIFT messaging integration
MEPS+ uses SWIFT messaging standards for the instructions that flow between participating banks and the system itself. This integration means MEPS+ interoperates cleanly with international payment standards and gives banks a familiar messaging format for submitting settlement instructions.
Where MEPS+ fits in Singapore’s payment landscape
Singapore’s payment infrastructure includes several systems, each optimised for different transaction characteristics:
MEPS+: Real-time gross settlement for large-value SGD interbank payments and SGS transactions.
FAST (Fast And Secure Transfers): Real-time credit transfer system for retail-value SGD payments between participating Singapore banks. It is widely used for both consumer and business payments.
PayNow: A peer-to-peer and business transfer service that uses NRIC, mobile numbers, UEN or virtual payment addresses as recipient identifiers. It runs on the FAST infrastructure.
GIRO: It is used for scheduled recurring payments such as bills, subscriptions and direct debits. Batch-processed rather than real-time.
SWIFT: It is the international messaging network used to route cross-border payments in and out of Singapore.
Benefits of MEPS+ for the Singapore banking system
MEPS+ delivers several benefits that make it a critical piece of Singapore’s payment infrastructure:
- Settlement finality reduces credit risk: Because transactions are final and irrevocable once settled, banks don’t carry counterparty exposure between initiation and settlement.
- Real-time processing supports time-sensitive payments: Large corporate transfers, treasury movements and financial market settlements happen immediately rather than waiting for a batch window.
- Central bank money eliminates settlement risk: Using MAS-held funds as the settlement asset removes credit risk from the settlement itself.
- Reliable infrastructure for high-value transactions: MEPS+ is designed for the volumes and values that flow through Singapore’s banking system daily, with the robustness required for that scale.
How MEPS+ compares to international payments
MEPS+ is a domestic payments system in Singapore. It only settles SGD payments between participating banks in Singapore. For any payment that crosses borders or involves a currency other than SGD, MEPS+ doesn’t apply.
International payments from Singapore typically move through:
- SWIFT wires, routed through correspondent banks along the way to the recipient’s bank in another country
- Cross-border payment platforms which can route payments through their own networks and often settle faster than SWIFT
- Multi-currency accounts, which can hold balances in multiple currencies and let businesses send funds directly in the recipient’s currency
For Singapore businesses handling both domestic and international payments, understanding this distinction matters for choosing the right payment method for each transaction.
How WorldFirst supports Singapore businesses beyond MEPS+
The World Account is a multi-currency account from WorldFirst, an international payments provider for cross-border businesses. For Singapore businesses handling international payments, the World Account provides:
- Multi-currency accounts in 22 currencies, including SGD, USD, GBP, EUR and CNH, each with local bank details for receiving payments as if the account were domestic to that currency
- International payments in 100+ currencies to 200+ countries and regions, for settling supplier invoices, contractor payments and overseas expenses
- Forward contracts for locking in exchange rates on future currency conversions, useful for hedging FX exposure on known future payments
- The World Card, a Mastercard-powered business payment card linked to the account, with up to 20 virtual cards at no additional cost. No fees apply when paying in any of the 15 supported currencies (with sufficient balance held in that currency). Cashback is available on eligible spending (Terms and Conditions Apply)
FAQs
1. Is MEPS+ the same as FAST or PayNow?
No. MEPS+ is Singapore’s real-time gross settlement (RTGS) system for large-value SGD interbank payments and Singapore Government Securities transactions. FAST is a real-time credit transfer system for retail-value SGD payments, and PayNow is a peer-to-peer and business transfer service running on the FAST infrastructure. Each system handles different types of payments.
2. What are the operating hours for MEPS+?
MEPS+ operates during Singapore’s standard banking hours on business days, with some extensions for specific settlement windows. Payments submitted outside operating hours are queued for settlement when the system reopens.
3. Can MEPS+ be used for international payments?
No. MEPS+ only settles SGD payments between participating banks in Singapore. International payments from Singapore typically go through SWIFT or cross-border payment platforms like WorldFirst.
This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.
