Singapore going towards cashless society with Paynow Corporate

Businesses in Singapore can receive payments from consumers and transfer funds to other businesses through PayNow Corporate, a service expected to launch around August this year. The service will be offered by 7 banks, which are already offering PayNow to their retail customers, namely Citibank, DBS Bank/POSB, HSBC, Maybank, OCBC Bank, Standard Chartered Bank, and United Overseas Bank.

To use PayNow Corporate, businesses need to first link their bank accounts to their Unique Entry Numbers (UENs). It works the same way as consumers linking their bank accounts to their mobile numbers. Businesses will then display their UENs at cashier terminals for consumers to make payments directly to their bank accounts via the UENs. According to an article from The Business Times, PayNow Corporate will ride on existing payment mechanisms such as Fast and Giro, both of which are currently used by businesses for B2B transactions.

As Singapore strives toward a cashless society, the proliferation of e-payment services brings both advantages and disadvantages.

Businesses stand to gain the most from e-payment services in terms of greater efficiency and lower costs, said Mr. Ong Ye Kung, Education Minister (Higher Education and Skills) at the Singapore FinTech welcome dinner. Similar to Paynow, Paynow Corporate allows businesses to transfer money without requiring recipient’s account number. This reduces the effort and time taken needed to make each transaction.

However, he also noted that having many cashless payment modes can be confusing for consumers. Hence, it requires collaboration between the government and the industry to make Singapore e-payments adoption more convenient for everyone. For example, the nationwide common QR specifications for e-payments, SGQR, will be released starting next year. SGQR eliminates multiple terminal set-ups belonging to various cashless payment solutions, owing to the fact that e-payment transactions will be done through a single QR code.

Aside from businesses, public agencies will also be able to use the PayNow service. The Ministry of Education will use PayNow to disburse Edusave Awards to ITE and polytechnic students, while CPF Board will use PayNow to disburse lump sum withdrawals of CPF savings, allowing eligible members to receive their CPF payouts on the same day instead of the usual five working days.

About FOMO Pay

FOMO Pay provides one-stop QRCode Payment Solution which enables merchants to accept a full suite of new payment methods including WeChat Pay, NETSPay, mVISA, Grab Pay, Baidu Wallet, Best Pay, etc. Launched in 2016 with more than 1000 merchants acquired within a year, FOMO Pay is trusted by major companies including SPH, Marina Bay Sands, StarHub, JUMBO, Club 21, CHANEL, etc. With FOMO Pay, merchants can unlock true business potential by giving customers the payment options they prefer and adopt cashless payment easily. FOMO Pay is also sitting in MAS SGQR Taskforce to promote QR code payment and make Singapore a cashless society.