The Monetary Authority of Singapore ( MAS ) has mandated that the e-commerce platform Qoo10 suspend all Singaporean payment services starting Monday ( Sep 23 ) because of delays in the payment process for its customers.
Customers are currently able to make purchases on the program, despite the company’s being given an exception for operating its e-commerce system.
” Qoo10 , may need to employ a third party payment service provider for deals on this platform”, said MAS.
Between April and August, MAS and various government agencies received many consumer complaints against Qoo10 for disruptions in processing obligations to users, who are retailers on Qoo10’s system.
” Qoo10 was asked to handle these issues, and while some were resolved, others remained outstanding”, said MAS in a press release.  ,
In early September, Qoo10 informed MAS that a considerable number of merchants would experience repayment difficulties. MAS engaged the product’s management about the difficulties and expressed its” major issues”.
The expert stated that MAS gave Qoo10 opportunities to address these issues and that the business had to cooperate with MAS in order to fulfill its obligations to merchants on an ongoing basis, including working with a third-party payment service provider to provide the covered services.
However, Qoo10 has to date said it lacks the” enough guarantee” it needs to fulfill its payment commitments to retailers in a timely manner.
The program was therefore given the order to end its transaction services, which are subject to the Payment Services Act, on Monday.
According to MAS, “MAS has taken into account the possible disruption the expulsion may have on Qoo10’s e-commerce system or other solutions that are integrated with the included payments services.”
” But, allowing Qoo10 to keep offering protected payment services would increase the risk of larger outstanding debts and potential losses for more stores using Qoo10’s protected payment service.
” Qoo10 may be permitted to make obligations to meet exceptional claims by like merchants, but may not take on new transaction obligations.”
In response to queries from CNA, MAS said that , Qoo10 offered merchant consolidation, account release, private money move, cross-border money transfer and e-money issuance services.
” All five companies are suspended,” a spokeswoman for the expert said.  ,  ,
CNA reported earlier this month that some retailers have filed says with a judge and that police are looking into the e-commerce program.