Singapore’s Fund Transfer Service PayNow Will Soon to Be Rolled Out to Government Agencies
Singapore is marching forward with its Smart Nation initiatives, its latest move involving PayNow. This service will bridge the final gap in e-payments.
All government agencies will soon have access to PayNow, including statutory boards. Making payments from fines to school fees will become easier than ever for Singapore’s citizens. The current Giro system is expected to be less significant once PayNow is in place.
First launched in 2017, PayNow Singapore was first introduced through banking apps. It is expected to resolve most of the existing e-payment issues. Payments will soon be less of a hassle without the need to enter your credit card or bank account details.
When it was first launched, 9 banks participated in the beginning. These were ICBC, DBS/POSB, Maybank, UOB, Citibank, OCBC, Standard Chartered Bank, HSBC and Bank of China.
Since then, PayNow now has more than 2.8 million NRIC, mobile numbers, business registrations. It has also performed more than $4.6 billion in transfers within the first half of this year.
How Does the PayNow System Work?
PayNow works by mapping your Singapore NRIC and mobile number to your bank account. Singapore’s target is to offer e-payment options by 2023 for all government services.
DBS Bank, United Overseas Bank (UOB) and OCBC Bank has been given the bulk tender responsible for enlisting public agencies in this program. This will enable Governments to disburse and receive instant funds. The bulk tender’s aim is to allow government agencies to improve their service delivery. Disbursing and receiving payments will be faster, even if the Government doesn’t have your account details.
What Can Singaporeans Expect with PayNow?
That would depend on how the system is implemented. In general, Singaporeans can expect to pay for almost anything instantly by scanning their QR codes via banking apps. Expect 90-95% of Government transactions to be done from the comfort of your own home.
How Are Payments Currently Being Handled?
9 in 10 government payments are already carried out electronically, but as of now, is not as efficient. These findings were based on the Based on the Monetary Authority of Singapore (MAS)’s survey. Giro is currently the common mode of e-payment, which can take nearly two days to clear.
Those currently making payments using the eNets system are not finding it convenient either. It’s a hassle to repeatedly enter their debit and credit card details. Moreover, not all credit cards payments are accepted. Giro will still continue its service, even after Giro.
Who Is Currently Using PayNow?
Singapore’s Ministry of Education is among the current early adopters of the PayNow method. The Central Provident Fund Board is also using this approach for lump sum withdrawals. According to OCBC, withdrawals amounting to approximately $40million and more were made 3-months from March the year before.