Methods of Payment

Singapore has a well-developed financial system that offers a comprehensive range of export finance instruments. Shipments are typically executed using letters of credit or sight drafts (bills of exchange), based on the exporter’s preference and their history of transactions with the purchaser. Standard credit terms usually range from 30 to 90 days, reflecting common market practices. 

Quotations are generally provided on a Cost Including Freight (CIF) basis. When quoting prices in United States dollars, it is essential to be clear to prevent confusion with the Singapore dollar. Exporters quoting in Singapore dollars should check with their banks for the current exchange rate. As Singapore utilizes the metric system, it is advantageous for price and quantity descriptions to follow this format. Notable credit rating agencies in Singapore include S&P Global Ratings, Moody’s, the Singapore Commercial Credit Bureau, and Experian Credit Services Singapore. The primary credit and charge cards used in the country include Visa, Mastercard, American Express, and Diners Club.

Digitalization brings new efficiencies and economic benefits to trade finance providers and their small and medium-sized enterprise (SME) clients. Progress in digital payments, electronic documentation, and blockchain technology has transformed the due diligence and compliance processes. Additionally, artificial intelligence and big data analytics enable more accurate credit scoring and better pricing options. However, a significant challenge persists: the lack of an interoperable global electronic infrastructure that connects all parties involved in cross-border trade transactions.

For SMEs grappling with financing challenges related to cross-border transactions—particularly those concerning repayment risks associated with export sales—collaborating with the Export-Import Bank of the United States (EXIM) is a viable option. EXIM provides export finance products designed to bridge gaps in trade financing, accepting countries and credit risks that the private sector may not be willing to take on. Through EXIM’s export financing, U.S. SMEs can convert business opportunities into actual transactions, ensure payment for their export sales, and continue to expand and thrive in global markets.
For more information about payment methods or other trade finance options, please refer to the Trade Finance Guide.

Banking Systems 

Singapore has established itself as the leading financial services hub for Asia, excluding China. Approximately 150 foreign banks operate in Singapore, in addition to six local banks. The country also hosts a significant number of non-bank financial institutions, both domestic and international, which include firms engaged in financial advisory, asset management, insurance, and capital markets.

The Monetary Authority of Singapore (MAS) fulfills all the functions of a central bank, including the issuance of currency. The Singapore dollar is the unit of legal tender. Besides regulating financial institutions, MAS has a Financial Sector Development Department that promotes new economic activities, develops IT infrastructure and workforce resources for the financial sector, and designs incentives to attract international financial firms to operate in Singapore.

MAS oversees financial institutions in the banking, capital markets, insurance, and payment sectors. Under the Banking Act, Singapore maintains a legal distinction between foreign and local banks, as well as the types of licenses (e.g., full service, wholesale, offshore banks) held by foreign commercial banks.

As of April 2025, Singapore had 20 foreign banks with full-service licenses, 97 wholesale banks, and 21 merchant banks engaged in corporate finance and investment services. Offshore and wholesale banks cannot participate in Singapore dollar retail banking. Only full banks and “Qualifying Full Banks” (QFBs) can conduct retail banking in Singapore dollars, although they face limitations on their number of business locations and ATM networks. As of April 2025, 10 banks were operating under QFB licenses.

The Banking Act 2020 introduced significant changes, including the elimination of the divide between Domestic Banking Units and Asian Currency Units, consolidating regulations for merchant banks, expanding criteria for revoking bank licenses, and enhancing oversight regarding banks’ outsourcing practices. Furthermore, newly issued digital banking licenses for foreign-owned entities are restricted to wholesale transactions.

The Payment Services Bill of 2019 requires that various payment services, including digital payment tokens, virtual currency dealings, and merchant acquisition, obtain licensing and regulation from MAS. Revisions to the Payment Services Act in April 2024 led MAS to implement new user protection and financial stability requirements for providers of digital payment tokens (DPTs). As of April 2025, Singapore has 33 Digital Payment Token Service providers, and the adoption of stablecoins accelerated in 2024 following the regulatory clarity provided by MAS, which finalized the stablecoin regulatory framework in late 2023.  In July 2024, Paxos became the first company to receive full approval from Singapore to issue stablecoins, followed by in-principal approval for StraitsX.

In December 2020, the Monetary Authority of Singapore (MAS) awarded digital bank licenses to non-bank entities, allowing them to operate banks in the country. Singapore now has five digital banks: three of these—GXS, Trust Bank, and Maribank—serve retail customers, while Anext Bank and Green Link Digital Bank cater to small and medium-sized enterprises (SMEs).
Singapore maintains an open environment for foreign-owned stockbrokers, imposing no trading restrictions. Additionally, there is no cap on foreign investment in the paid-up capital of SGX member dealers.

  
Foreign Exchange Controls

The United States-Singapore Free Trade Agreement (USSFTA) commits Singapore to allowing free capital transfers without regulatory restrictions. The country places no limitations on the reinvestment or repatriation of earnings and capital, and it has no significant restrictions on remittances, foreign exchange transactions, and capital movements.  

U.S. Banks and Local Correspondent Banks

Significant U.S. banks operating in Singapore include Citibank, JP Morgan Chase Bank, Bank of America, Morgan Stanley, State Street Bank, The Bank of New York Mellon, The Northern Trust Company, and Wells Fargo Bank. A list of local and foreign banks can be found at https://eservices.mas.gov.sg/fid. For additional information, visit the U.S. Department of State Investment Climate Statements