In the case of payments, that key risk is money laundering and terrorist financing (ML/TF), and the balance that we have to strike is to allow new e-wallet businesses to start quickly, but also ensure that ML/TF risks are managed before they get too large. In this context, while KYC continues to be a key requirement, we allowed smaller wallets holding funds of no more than $ to carry out simplified KYC requirements. This framework is similar to those used in other markets like Hong Kong, India, Australia and the UK. Finally, as a market, how do we ensure that e-payments function smoothly with each other and the financial system? Many of us think of smooth functioning as having liquidity 13.  providers in capital markets through volatile periods. That is because capital markets are welloiled systems that interoperate between banks and trading venues, and even among banks. Not so with e-payments. E-payments have grown quickly because they have been able to develop their own systems quickly – but this has resulted in some fragmentation. Although the vast array of 14.  payment solutions offers more choices to consumers and merchants, too much choice is not always a good thing: a. Consumers may end up holding three or four different e-wallets in order to get the best deals from each: one for transport, one for shopping, and another to split bills with friends.
As they say, necessity is the mother of all invention, and nowhere else is this more pressing than in Asia, where a high proportion of unbanked population is concentrated. In 2017, the World Bank found that China, India, Indonesia and Bangladesh alone contributed to one-third of the world’s unbanked adults5. 7 . This has resulted in a well-trodden path among digital businesses in Asia: Build a digital business around something non-financial, say ride-hailing, food delivery, groceries or gaming. Then offer your customers a seamless payment experience through an e-wallet, to pay for the things that they buy from you. Let me offer a few examples: a. In Singapore, Carousell offers an online marketplace for individuals like you and me to sell or buy anything. You take a photo of what you want to sell, the app can recognise items like shoes and suggest an appropriate category, and you post it for sale. They have about 150 million listings today, including cars and property. And they are launching CarouPay to help its customers to pay for all of them. b. Some of you, like a couple of my colleagues, may have come here this morning using the ridehailing service, Grab. It is very convenient. You book the ride, the driver arrives, you reach your destination, you thank your driver, and you are on your way. No money needs to be exchanged with the driver. You don’t even click “pay”.