Banking News

Singapore’s PayNow set to expand to businesses in 2018

(14 November 2017 – Singapore) The first peer-to-peer fund-transfer service in Singapore is expected to be extended to corporates and businesses in 2018, said the Association of Banks in Singapore (ABS).

Since mid-2017, seven major retail banks in Singapore have offered PayNow, the peer-to-peer transfer service, which uses mobile numbers to make payments. 

Customers of participating banks - Citibank, DBS, HSBC, Maybank, OCBC Bank, Standard Chartered Bank and UOB - can use PayNow to send and receive SGD funds anytime, anywhere.

ABS says that as early as next year, businesses will be able to link their unique entity numbers to their bank accounts to receive payments via PayNow.

For customers to receive funds through PayNow, they need to register and link one mobile number with their respective participating banks' accounts. As at Oct 8, 2017, total PayNow registration stood at more than 870,000.

Currently, 19 banks in Singapore offer free and 24/7 interbank transfers through Internet banking, running on a system known appropriately as FAST (fast and secure transfers). PayNow uses this same system, allowing the seven banks to move this fund-transfer service onto mobile devices.

FAST transactions in 2016 totaled 27 million and were worth about S$54 billion.

This PayNow service effectively turns the mobile number into a unique identifier of a banking customer, which is more efficient than using a banking account number as an identifier. Customers can use their NRIC number to link with their banking account.

"This industry-led innovative service has brought about simplicity, as customers can use the existing mobile-banking apps offered by the seven participating banks - there is no need to download a PayNow app," said ABS.

The app is also aimed at making payments more convenient. There is no need to remember the account number or bank name of the recipient as long as the recipient has registered with PayNow.

"There is additional security as the sender will see the recipient's name before confirming the funds transfer; this provides added assurance that funds are being transferred to the intended recipient. Customers are also notified via SMS instantly when funds are credited."

Banks are also working to offer PayNow transfers using QR codes. The recipient will generate a unique QR code which specifies the amount to be paid, and the sender scans the QR code to make immediate payment. This comes as the Monetary Authority of Singapore plans to develop a universal QR code payment system for the country soon.