SINGAPORE: E-commerce platform Qoo10 has been ordered by the Monetary Authority of Singapore (MAS) to stop providing all payment services in Singapore from Monday (September 23) due to payment delays from its suppliers.

Although the operation of the e-commerce platform is not prohibited, users are currently unable to make purchases on the platform.

“Qoo10 may need to engage a third-party payment service provider for transactions on this platform,” MAS said.

Between April and August, MAS and other government agencies received several customer complaints against Qoo10 regarding delays in processing payments to customers who are merchants on the Qoo10 platform.

“Qoo10 was asked to address these complaints and while some of them were resolved, others remained open,” MAS said in a press release.

In early September, Qoo10 informed MAS that a significant number of merchants were experiencing payment delays. MAS contacted the platform’s management about the delays and expressed its “serious concerns.”

“MAS offered Qoo10 an opportunity to address these concerns and required the company to take steps to satisfy MAS that it can meet its obligations to merchants on an ongoing basis, including engaging a third-party payment services provider to provide the covered services,” the authority said.

But so far Qoo10 has “not been able to provide sufficient assurance” that it has the necessary resources and systems to meet its payment obligations to merchants in a timely manner.

The authority therefore instructed the platform to stop providing payment services covered by the Payment Services Act from Monday.

“MAS had to carefully consider the potential disruption that the suspension could cause to Qoo10’s e-commerce platform or other services integrated with the covered payment services,” MAS said.

“However, if Qoo10 is allowed to continue offering covered payment services, more merchants using Qoo10’s covered payment services would be exposed to the risk of larger outstanding payments and potential losses.”

“Qoo10 may make payments to satisfy outstanding claims of these merchants, but may not incur any new payment obligations.”

In response to queries from CNA, MAS said Qoo10 provides services in merchant acquiring, account opening, domestic remittance, cross-border money transfer and e-money issuance.

“All five services have been suspended,” said a spokesman for the agency.

CNA reported earlier this month that police were investigating the e-commerce platform and some traders had filed a lawsuit in court.