Singapore exploring enhancements to PayNow such as reduced payment steps, integration with NETS QR: DPM Gan

The announcement was made at the ABS annual dinner on Thursday (Jun 25).

“When payments become faster, more interoperable and richer in data, consumers, merchants, businesses and government services will all benefit,” said Deputy Prime Minister Gan Kim Yong at the dinner.

He said PayNow has become a cornerstone of Singapore’s payments landscape, but as consumer and business needs evolve, the national payment rails must also improve. 

Last year, PayNow processed around S$154 billion (US$119 billion) in consumer payment value and S$147 billion in business payment value, the MAS and ABS report said.

PayNow Generation 2 will ensure that Singapore’s systems are fit for purpose and future ready, said Mr Gan, who is also the MAS chairman.

The study on PayNow was initiated because of new demands and trends across the payment ecosystem. 

It will be conducted in two phases, with the latest report focusing on the first phase – reviewing PayNow’s development, benchmarking it against other markets and identifying priority enhancements. 

The report benchmarked PayNow against 11 other markets, including Malaysia’s DuitNow, and found several areas that the service can be improved.

FOUR AREAS OF ENHANCEMENT 

Among other recommendations, the MAS and ABS report identified four ways that PayNow could be enhanced.

The first is to make PayNow and NETS QR codes interoperable, which means that consumers can scan and pay at any merchant regardless of which service is used.

Consumers would be able to use apps such as Citibank, Grab and HSBC to scan NETS QR codes, which is currently not possible.

Simplifying and unifying the interoperability of the QR schemes can also enhance the experience for tourists in Singapore, who currently cannot use PayNow.