PayNow and Fast to begin services in 2021

PayNow and Fast to begin services in 2021

Consumers will soon be able to transfer funds from their bank accounts to mobile wallets, and between such e-wallets, in a faster and more hassle-free way, with the PayNow and Fast transfer service. 

This comes as two major funds transfer services will open up to non-bank financial institutions (NFIs) from February next year, in a significant step towards making digital payments here more seamless. 

NFIs that are licensed as major payment institutions will be allowed to connect directly to Fast (Fast and Secure Transfers) and PayNow, said the Monetary Authority of Singapore (MAS).

The move will allow users of NFI wallets to make real-time funds transfers between their bank accounts and e-wallets, as well as between various e-wallets. 

Most e-wallets currently require users to top up their funds using debit or credit cards and do not allow the transfer of funds between e-wallets.

With the change, a customer can choose to transfer funds via Fast or PayNow from his mobile banking app or internet banking platform to top up his mobile wallets, instead of keying in his credit or debit card details. 

MAS managing director Ravi Menon said the move closes the “last-mile gap in Singapore’s e-payments journey”.

He said: “Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts.”

Merchants are also expected to benefit as they will have a larger market of consumers than before for receiving payments instantly, said Singapore’s central bank.

Businesses that partner with any of the 23 Fast or nine PayNow banks, or e-wallets that have traditionally been closed-loop ecosystems, will soon be able to receive real-time payments from users of other e-wallets or mobile banking applications that will be joining Fast or PayNow.

Which ones are the banks participating with PayNow?

The nine participating PayNow banks are Bank of China, Citibank, DBS Bank, HSBC, the Industrial and Commercial Bank of China, Maybank, OCBC Bank, Standard Chartered Bank, and United Overseas Bank.

As for the mechanics of the initiative, NFIs will be able to connect directly through a new Application Programming Interface (API) payment gateway developed by the Direct Fast Working Group.

The group is guided by the Singapore Clearing House Association and the Association of Banks in Singapore (ABS), which govern Fast and PayNow respectively.