Singapore-based e-commerce platform Qoo10 has had its payment services suspended from Monday (23 Sept).
The move comes after several merchants on the website complained of delays in processing their payments.
Source: Qoo10 Singapore on LinkedIn
In a media release on Monday (23 Sept), the Monetary Authority of Singapore (MAS) said it had directed Qoo10 to suspend the provision of all payment services covered under the Payment Services Act 2019 (PS Act).
This includes services such as:
Qoo10 is still allowed to operate its e-commerce platform, but “may need to engage a third-party payment service provider for transactions on this platform”, MAS added.
The suspension however effectively puts a stop to shopping on Qoo10 as users are unable to make purchases.
A statement on the Qoo10 website posted on Monday (23 Sept) notified visitors that its payment gateway was “temporarily unavailable”.
Source: Qoo10 Singapore
The company is working to implement a “more streamlined and reliable” payment system, it said, adding:
We anticipate the service will be reinstated shortly and appreciate your understanding during this period.
MAS said that it had received several complaints from merchants on Qoo10’s e-commerce platform for delays in processing their payments between April and August this year.
While Qoo10 resolved some of the complaints, others remained outstanding.
Qoo10 then informed MAS earlier this month that a significant number of merchants would face payment delays.
MAS expressed serious concerns to Qoo10’s management about the delays, and provided opportunities to Qoo10 to remedy these concerns.
It also required the company to take steps to satisfy MAS that it would 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”.
However, Qoo10 has been “unable to provide sufficient assurance” that it could meet its payment obligations to merchants in a timely manner, MAS said.
MAS carefully considered the potential disruption a suspension might cause, but ultimately decided that it could not permit Qoo10 to continue providing covered payment services.
That’s because this would expose more merchants to risks of larger outstanding obligations and potential losses, it added.
Thus, Qoo10 is now permitted to make payments only to satisfy outstanding claims by merchants.
It must not however take on new payment obligations, MAS said, adding:
MAS will review the suspension when Qoo10 is able to satisfy MAS of its ability to resolve the payment delays and safeguard the interest of its customers in Singapore on an ongoing basis.
MAS advised merchants facing payment delays to raise their concerns with Qoo10.
If their concerns remain unresolved, they can make use of established processes in place, for example filing a civil claim with the courts.
Also read: S’pore Start-Up Zilingo Files For Liquidation, Temasek Among Its Investors
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Featured image adapted from Qoo10 Singapore on LinkedIn.
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