Guide to merchant accounts in Singapore: Fees, providers, and setup

If you're running a digital business you may be wondering how to get an internet merchant account in Singapore to take customer card payments.

This guide walks through the merchant account meaning, the merchant account processing flow and some popular multi currency merchant accounts you may want to consider.

We’ll also introduce Wise Business as a good choice for businesses dealing with customers, suppliers, contractors and staff internationally, with low cost payment solutions and mid-market exchange rates.

What is a Merchant Account?

A merchant account allows businesses to receive incoming payments, including customer card and mobile wallet payments.

Once a payment from a customer is received, it is deposited to a merchant account for secure holding. Often the funds must stay in the merchant account for a short period to allow the payment to be settled and to reduce the risk of chargebacks and other customer issues.

How does a merchant account work? Role in payment processing

A merchant account is one step in a common payment processing journey. Let’s say a customer buys an item from an ecommerce store, and pays with their card. The card network - like Visa or Mastercard - will facilitate the transfer of funds and debit the customer account.

Once the money has been debited from the customer it is moved to the merchant account. Often a merchant account has a fixed settlement period where the money must remain in the account to check the payment is processed properly before the account owner can withdraw it.

Once the money has cleared and the payment is fully settled, the account owner (the business owner) can withdraw the funds from the merchant account to their normal business account.

Although there are several different steps involved, many providers actually offer integrated services which cover the end to end process. This means you don’t need separate accounts with many different providers just to accept a customer payment. We’ll look at some popular merchant account providers in this guide.

Payment gateway vs Merchant account

Choosing how to manage incoming payments for your business can involve several different processes and providers - which may be confusing. One common question is around how payment gateways overlap with merchant accounts - and why you may need both.

A payment gateway and a merchant account have different functions:

• Payment gateway: front end service which authorises a payment from a customer, and allows for a secure and encrypted transaction from a card or ewallet
• Merchant account: back end service which allows you to receive an incoming payment from a customer and hold it temporarily before transferring to your primary business account

You’ll often need both of these services - but they may be provided by the same company. For example, services like Stripe¹, PayPal² and Airwallex³ all offer both gateway services and a merchant holding account, to give an end to end experience.

Importance of merchant accounts for Singapore businesses

If you want to take customer card payments, or get paid using ewallets, you’ll need a merchant account. You may not need a merchant account in Singapore if you only receive incoming bank transfers or get paid by customers in cash. However if you want to offer a full suite of digital payment options for customers a merchant account can help.

The exact merchant account you need may depend on your customer base. For example, a provider like PayPal has a credit card merchant account integrated into its business account service, or you may choose a specialist option such as an Alipay merchant account if your customers prefer this payment option.

If you mainly receive incoming payments using bank transfer, you might find an account like Wise Business sufficient for the business' transaction needs. Wise Business lets you receive incoming payments with local account details in 8+ currencies, so that customers can pay in the preferred currency.

Merchant account providers in Singapore

As we've seen there are different ways you may choose to open a merchant account in Singapore. One popular option is to get your merchant account and payment gateway from the same service, which streamlines the number of providers you need to work with.

Here’s a quick summary of some popular merchant account providers in Singapore which you may want to consider:

Stripe - Stripe supports over 135 payment methods and currencies, with a range of low and no code options to allow you to take digital payments even if you’re not tech savvy. Payments received in your Stripe merchant account offer fast, flexible pay out options so you can use your money as you choose.

PayPal - PayPal has huge global reach and is a known and respected brand. You can use PayPal to take customer digital payments conveniently and securely, with the payments settling to your PayPal merchant account. From here you can move your money to your Singapore business account easily whenever you need to.

Airwallex - Airwallex supporters over 200,000 business clients globally, with a full range of payment services including gateway and merchant account options. Airwallex has low code, plug and play and payment link options, and your payments are then held securely in your Airwallex merchant account until you need them

If these providers don’t suit your needs there are many other payment service providers which offer an end to end service, or options through local and global banks, such as UOB merchant services⁴.

How to open a merchant account

How you open your merchant account will depend a lot on the provider you select, and also the entity type you have registered in Singapore.

Digital first providers like Stripe, Airwallex and PayPal will manage the end to end application process online - you can upload documents that are needed and get verified remotely. Banks may allow you to apply online, or you might find you have to register your interest and then wait for a call back to discuss how to apply.

In all cases you’ll need to give some information and paperwork about your business to allow the provider to verify your application and get your account set up.

Documents which may be needed include⁵:

• Government issued ID documents for account owner and ultimate beneficial owners
• Proof of address for account owner and ultimate beneficial owners
• Business registration information and documents which vary by entity type
• Details of the source of your funds if requested

Once you’ve submitted your application online or in person the provider can check all your details and confirm your account. Once verified you can then start to transact and receive payments to your merchant account.

Fees associated with a merchant account in Singapore

The costs of a merchant account can vary widely depending on the provider you select and the specific services you need.

Some of the most common fees are associated with payment processing in order to receive the money in your merchant account, plus there are also sometimes costs for currency conversion where needed, or for withdrawing from your merchant account to your business account. Some providers have monthly fees to pay on top of transaction costs.

To give an idea here are some important costs for major providers - other fees may apply so do compare the full fee schedule for all providers you may consider:

Details correct at time of research - 9th march 2026

Challenges of handling a merchant account

Taking digital payments is essential for most businesses in Singapore, both to accept local customer payments and to attract a broader, international buyer. However, merchant accounts may come with fees and complexities, so it’s useful to check the details of different providers before you sign up.

A few things to consider include:

• Ongoing fees- some services have monthly fees which can become a burden and eat into your profits
• Transaction costs - processing fees vary widely and can be very different for different payment methods - check the payment method your customers prefer are available and cheap
• Currency support - if you’re working with an international customer base, being able to receive incoming payments from a range of countries is essential
• Customer service - at some point you’re likely to need help from your provider - check they’ve got a good reputation for service, as well as an easy to contact support team

Wise Business - Beyond the merchant account

While a merchant account is essential for accepting card payments, the hidden costs and markups that come with withdrawing funds in different currencies can often come with heave price tags.

Wise Business helps solve these challenges by offering transparent currency conversions with no hidden markup on the mid-market exchange rate. By using Wise Business alongside your merchant account, businesses can receive funds in a selection of currencies instead of being forced to convert them immediately.

If you're growing a global business, you'll quickly face a daunting wall of costs, complexity, and hidden fees when receiving international payments. Wise Business helps you bypass this wall, making it easy to receive money from around the world and start getting paid like a local today.

• Obtain account details to receive payments in GBP, EUR, CAD, AUD and more for a one-time fee of 99 SGD.
• Simply share your account details with customers or add them to invoices.
• Hold, send, and convert money at the mid-market rate in one account.
• Simplify customer payments with Wise request payment feature.
• Accept payments from customers and payment service providers (PSPs) like Stripe and Amazon.
• Generate payment links to request money in specific currencies.

➡️Get started with Wise Business today

FAQs

1. What is the difference between a merchant account and a business bank account?
A merchant account is often linked to your payment gateway and is used to securely hold incoming customer card payments before you transfer the funds to your main business account. A business bank account will usually have more features compared to a merchant account which is intended just for holding funds while they settle.

2. Can I get a merchant account if my business is new or has a high risk profile?
Different providers set their own eligibility requirements and some will not work with risky businesses. Newer businesses may also need to shop around a little to find a provider which suits - but there are solid options out there.

3. How long does it typically take to get approved for a merchant account in Singapore?
Verification and approval time can vary between different providers, from almost instant to a few days in some cases. Ask when you apply, so you’ll know what to expect.

Sources:

1. Stripe
2. PayPal
3. Airwallex
4. UOB merchant services
5. Airwallex help - documents to open account in Singapore
6. Stripe pricing
7. PayPal pricing
8. Airwallex pricing