YouTrip raises e-wallet limits after MAS rule change; Revolut and Wise to follow suit

SINGAPORE: Users of multi-currency e-wallets are now able to spend and hold more money in their accounts following recent changes to these regulatory limits.

Operators in Singapore are gearing up to roll out these changes on their platforms, with YouTrip making the first move.

The Singapore-based app announced on Jan 3 that its users can now hold up to S$20,000 (US$15,025) in their e-wallets at any point and have an annual spending limit of S$100,000.

These are the maximum limits stipulated by the Monetary Authority of Singapore (MAS) and are up from S$5,000 and S$30,000, respectively.

When contacted by CNA, Revolut said it “will raise the limits for (its) users very soon” in line with official guidelines, while Wise said it is “working on implementing the changes”.

MAS first proposed increasing the limits for e-wallets offered by those who hold the major payment institution licence last October, citing the need to facilitate customer convenience and innovation.

After reviewing the feedback for its public consultation paper, the regulator put in place the higher caps on Dec 15, 2023.

Multi-currency e-wallets, such as YouTrip, Revolut and Wise, have gotten increasingly popular over the years, mainly due to their competitive exchange rates compared to traditional banks or moneychangers. They are also cheaper to use than credit cards since there are lower or no transaction fees for overseas transactions.

The previous caps have caused some frustration for their users, these operators said.

Wise, a British-based digital payments firm, said it has “advocated consistently over the years to increase these limits to better serve (its) customers”. “We certainly welcome the changes by MAS,” APAC expansion lead Lim Paik Wan told CNA.

Likewise, YouTrip noted that it has, over the years, “consistently” received requests from its users for higher spending and holding limits to make bigger purchases, such as flight tickets and accommodation.

“Driven by our users’ payment needs, our team promptly acted to raise YouTrip’s wallet limit, addressing a major pain point for users who were curtailed by previous lower caps,” a spokesperson said.

Mr Raymond Ng, chief executive officer of Revolut Singapore, described the raised limits as “a step in the right direction and will enable greater innovation in the e-wallet landscape”.

ANTI-SCAM SECURITY MEASURES

Alongside the raised limits, YouTrip announced a slew of anti-scam security measures such as a “kill switch” that lets customers freeze their accounts if they suspect that their accounts have been compromised.

Others include a 12-hour cooling-off period after a new login is detected, a strengthened authentication process for users changing their contact details and a dedicated e-mail address for fraud reporting.

YouTrip said phishing scams and impersonation scams are some of the common fraud cases it has seen on its platform. 

But it “has prevented many such cases from happening over the years”, with its fraud monitoring system which analyses transaction patterns and detects early signals of suspicious activities.

“We believe the mentioned security enhancements in our announcement, alongside the wider set of processes and measures implemented on YouTrip’s backend, meet the expectations set out by the MAS for a secure and responsible digital payments environment,” the spokesperson said.

MAS noted in its October consultation paper that raising the spending and holding limits could increase the funds held or transferred through these e-wallets and consequently, potential losses incurred through scams.

“E-wallet issuers should take this risk into account and assess if their anti-scam controls should be strengthened,” it wrote.

Revolut said it understands that “some users may be concerned about scams and fraud” with the higher e-wallet limits.

“We are in full support of the anti-scam and anti-fraud security measures that MAS has mandated for fintech companies,” said Mr Ng, noting that Revolut already has a “majority” of these security measures in place.

Separately, the firm has doubled the size of its financial crime team around the world since 2021.

Similarly, Wise said it offers a range of security features and warning mechanisms, including two-factor authentication, real-time transaction notifications, as well as the option for users to freeze and block their cards on their own.

“Our team is actively engaged in reviewing and strengthening our security measures to stay ahead of evolving risks,” said Ms Lim.