Singapore takes a new step towards going cashless with PayNow mobile app
9 out of 10 Singaporeans prefer to make electronic payments rather than using cash, according to data collected from the 2016 Visa Consumer Payment Attitudes survey
. This is an 11% increase from the prior year, indicating that cashless payments are on the rise in Singapore. Also, 91% of Singaporeans are aware of contactless payments, an increase of 4% from the previous year.
In addition, more people are making the transition from the physical wallet and cards to their smartphones. The mobile payment market in Singapore is a fragmented one, consisting of both foreign and local players such as Apple Pay, Samsung Pay, DBS’ PayLah!, and Singtel and Standard Chartered’s Dash. 1 in 4 Singaporeans have adopted mobile wallets, and overall usage is expected to increase, according to an article from Singapore Business Review
The Government has taken several steps to encourage Singaporeans to go cashless. For instance, NETS FlashPay was introduced in 15 hawker centres across Singapore
as an attempt to change consumers’ and business owners’ habits in hawker centres, which is heavily cash-based. The PayNow mobile app is a new step in shaping Singapore into becoming a cashless society.
PayNow is a peer-to-peer transfer service that allows the sender to send money to the recipient just by using the recipient’s mobile number and/or NRIC/FIN. It is a secure funds transfer service, adopting the same security standards established by the banking industry in Singapore for funds transfer. In addition, the sender will be able to see the recipient’s name before confirming the transfer.
Users can start using the PayNow mobile app from July 10, as long as they are a customer of these participating banks: Citibank Singapore Limited, DBS/POSB, HSBC, Maybank, OCBC Bank, Standard Chartered Bank, and United Overseas Bank. The 7 banks cover about 90% of retail transaction volume in Singapore, according to an article from The Straits Times
. To start using the service, users have to first link their mobile number and/or NRIC/FIN to their bank accounts via the bank’s Internet Banking platform or the bank’s mobile app.
Finance Minister Heng Swee Keat mentioned that the Government is looking into using the app to make payments directly to people’s bank accounts using their NRIC numbers, simplifying the transfer process.
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About FOMO Pay Pte. Ltd
FOMO Pay is the first authorized WeChat Pay & Baidu Wallet partner in Southeast Asia, and was selected as one of the TOP 100 Asian Companies by E27, TOP 100 Startups by Red Herring Asia, and Top 8 by DBS’ FinTech Accelerator Program. FOMO Pay provides a one-stop solution for local merchants by facilitating payment collection from the China market, including Chinese tourists. This comprises of online/offline Chinese payment modes, such as WeChat Pay, Alipay and Union Pay. FOMO Pay’s business solution serves clients from a wide range of industries, including the telecom, publishing, tourism and hospitality, F&B, education and retail industries.