Qoo10 Ordered to Halt Payment Services in Singapore Amid Vendor Payment Delays
The Monetary Authority of Singapore (MAS) has ordered Qoo10, a popular online marketplace, to suspend its payment services in Singapore due to persistent delays in payments to merchants selling on the platform.
In a statement released on September 23, MAS confirmed that while Qoo10 must halt its payment services under the Payment Services Act, it is still allowed to settle outstanding claims by affected vendors. This order does not restrict the e-commerce platform from operating, but Qoo10 will likely need to partner with a third-party payment service provider to handle transactions moving forward.
The decision followed multiple complaints from merchants about delayed payments between April and August 2024. While some of these issues have been resolved, several remain outstanding. In early September, Qoo10 alerted MAS that many of its vendors would experience further payment delays.
MAS had been in discussions with Qoo10’s management to address these concerns, even offering opportunities to rectify the situation. However, Qoo10 failed to provide enough reassurance that it could consistently meet its payment obligations. Consequently, MAS took action to protect merchants from further risks.
Under the Payment Services Act, service providers must have the necessary licences to operate. Qoo10, while not licensed by MAS, had been exempted from this requirement under transitional provisions that allow pre-existing providers to continue offering services while their licence applications are under review.
Despite the potential disruption to Qoo10's services, MAS determined that allowing the company to continue its payment services could lead to even greater risks and liabilities for merchants.
MAS stated that it would review the suspension once Qoo10 can demonstrate its ability to resolve the payment delays and safeguard the interests of merchants. Vendors facing payment issues are encouraged to raise their concerns directly with Qoo10. In case disputes remain unresolved, they may explore civil claims or debt recovery procedures.
Merchants who are struggling with cash flow problems due to these delays can also apply for the Enterprise Financing Scheme (Working Capital Loan) through participating financial institutions, as listed on Enterprise Singapore’s website.
Earlier in September, multiple vendors reported that thousands of dollars in sales proceeds had been either delayed or remained unpaid.