Towards a Smart Cashless Society with Contactless Payment

From contactless stored-value cards to contactless payment!

The contactless payment scene in Singapore has evolved since we began using contactless stored-value cards for fare payment on public transport.

With widespread acceptance of contactless payment, high penetration of credit and debit cards, as well as a good level of mobile readiness, Android Pay, Apple Pay and Samsung Pay are now available as mobile payment modes in Singapore.

 

Contactless Payment Scene Singapore

 

Why e-Payments?

The ultimate objective is to lower transaction costs for all businesses and for citizens who are purchasing goods and services. It is to expand opportunities and especially for small companies, for freelancers, for entrepreneurs, for the gig economy, for the small handicraft maker. You want them to be able to access this at the lowest possible transaction cost, in order to enhance competitiveness and participation in our economy.

 

What can we expect?

  • Consumers can perform secure peer-to-peer direct funds transfer across local banks, simply by using the recipient's mobile number and/or NRIC. Launched by the Association of Banks in Singapore (ABS), the  PayNow service available on existing mobile banking apps and online banking systems of participating banks, offers consumers a much more efficient and fuss-free method for  transactions. The service will include retail transactions and may also include government-related transactions next year. So far, it has been used mostly for mainly P2P payments, between persons, and more than $370m has been sent on this basis through the PayNow system.
  • PayNow for Corporate will be launched in the second half of 2018 to enable businesses to pay other businesses, or consumers to pay merchants.
  • The Government will tap on the PayNow infrastructure for various transactions with citizens. The Ministry of Education (MOE) has announced that it will leverage PayNow to disburse EduSave Awards to Polytechnic and ITE students.
  • From March 2018, eligible seniors aged 55 and above will also be able to make lump sum CPF withdrawals through PayNow. Withdrawals will be received within the same day, as compared to GIRO withdrawals which can take up to five days.
  • Beyond PayNow, the Government will be implementing SGQR, a unified QR payment code, and a unified point-of-sales terminal to continue to streamline the e-Payments landscape in Singapore.
  • Also, the NETS and EZ-Link's tie-up has made it possible from April 2018 for consumers to pay at hawker centres using their NETS or EZ-Link card through a single NETS terminal!

 

 

Last updated on 12 Jul 2018