Qoo10 ordered to suspend payment services in Singapore due to unpaid vendor claims

SINGAPORE – Struggling online marketplace Qoo10 has been forced to suspend its payment services due to numerous delays in payments to sellers listing their goods there.

However, the Monetary Authority of Singapore (MAS) in a statement issued on the evening of September 23 said Qoo10 will be able to make payments on unpaid receivables from these merchants.

MAS ordered Qoo10 to suspend the provision of all payment services covered by the Payment Services Act from the same date because it was unable to provide sufficient assurances that it had the resources and systems to meet its payment obligations to merchants in a timely manner.

The suspension does not prevent Qoo10 from operating its e-commerce platform, but it may be required to use a third-party payment service provider to conduct transactions on the platform, MAS said.

The MAS said the decision was made after the authority and other government agencies received a number of complaints from merchants about Qoo10 due to delays in processing payments on its e-commerce platform Qoo10 between April and August 2024.

“Qoo10 was asked to address these complaints and while some were resolved, others remained unresolved.”

In early September 2024, Qoo10 informed MAS that a significant number of merchants would face payment delays.

The authorities said they had contacted Qoo10 management about the delays and expressed serious concerns.

“MAS has provided Qoo10 with the opportunity to address these issues and has requested the company to take steps to ensure that MAS will be able to meet its obligations to merchants on an ongoing basis, including engaging a third-party payment service provider to offer the covered services,” it added.

The Payment Services Act specifies a number of activities, including domestic money transfers, for which payment service providers must obtain a license.

However, when the Act came into force in 2020, existing payment service providers were allowed to continue providing these services until their licence applications were considered by MAS, under an exemption.

“We are doing this to prevent service interruption while waiting for a license to be issued,” MAS said.