SINGAPORE: Ever tried to scan and pay using a merchant's QR code, only to realise you were not using a compatible app?
That could soon be a thing of the past as Singapore seeks to roll out the second generation of the instant digital payment service PayNow. The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) hope to pilot this by the end of 2026.
Online checkouts on PayNow could also be more seamless in future, without having to take a screenshot or download a QR code so as to upload it to the banking app.
MAS and ABS hope to make this a reality within a year.
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These are among several areas identified as possible ways to enhance PayNow to better serve the needs of consumers, merchants, businesses and public agencies.
The central bank and Singapore banking association on Thursday released a report titled PayNow Generation 2, which sought to define the next wave of innovation for Singapore’s instant payments system.
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 in consumer payment value and S$147 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.
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.
The second is to introduce deep-linking within PayNow QR codes for online purchases.
This means that when a customer selects PayNow on the checkout page, the banking app will automatically open. The customer will review pre-populated payment details before confirming payment.
Under the current system, customers have to save or screenshot the QR code, open the banking app and import the QR code to make payment through PayNow.
The third possible enhancement is to enable larger-value PayNow transactions for government agencies.
The MAS and ABS suggested that this could be done through a sandboxed pilot with appropriate transaction limits and safeguards, to make it more convenient for consumers and businesses to pay government agencies.
A trial of this will begin in 2027.
The fourth proposed enhancement is to expand payment capabilities for emerging business needs, such as request-to-pay, expanded cross-border connectivity and offline payment capabilities.
Mr Gan also said that Singapore will also begin "laying the groundwork for agentic commerce". He is referring to an emerging form of e-commerce in which autonomous artificial intelligence agents make their own purchasing decisions independently.
“These capabilities are longer-term in nature; MAS and ABS will commence foundational work this year,” the two parties said in a joint statement.
Payment innovations and new demands have emerged since PayNow was introduced in 2017, the report said.
It said that businesses require payments to be embedded directly into their software, with structured data that reconciles itself. Consumers also want payments to be effortless across channels, merchants and currencies.
The MAS and ABS initiated the PayNow Generation 2 study to look into the new demands and trends.
Compared with payment schemes in other markets, PayNow performed well in terms of adoption and reach, pricing and core user experience.
However, there were gaps in payment requests initiated by merchants and billers, and business-to-business functionalities.
PayNow’s scheme-level capabilities are also less mature than its peers, in areas such as dispute frameworks and interoperability.
The first phase also looked at structural shifts that Singapore’s national payment rails will need to support in the next decade.
That includes pay-by-chat and pay-by-voice experiences, the use of artificial intelligence agents for shopping and payments.
“Singapore will adopt a proactive risk management stance, ensuring that innovation in agentic commerce is accompanied by robust safeguards, governance, and regulatory oversight,” the report said.
The next phase of the study will assess feasibility, implementation requirements and industry readiness. It will also set out how priority enhancements can be operationalised in practice and supported by proof-of-concept demonstrations.
The study will look at the potential impact on user experience, operational efficiency and market adoption as well.
Continue reading...
That could soon be a thing of the past as Singapore seeks to roll out the second generation of the instant digital payment service PayNow. The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) hope to pilot this by the end of 2026.
Online checkouts on PayNow could also be more seamless in future, without having to take a screenshot or download a QR code so as to upload it to the banking app.
MAS and ABS hope to make this a reality within a year.
CNA Games
Show More Show Less
These are among several areas identified as possible ways to enhance PayNow to better serve the needs of consumers, merchants, businesses and public agencies.
The central bank and Singapore banking association on Thursday released a report titled PayNow Generation 2, which sought to define the next wave of innovation for Singapore’s instant payments system.
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 in consumer payment value and S$147 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.
The second is to introduce deep-linking within PayNow QR codes for online purchases.
This means that when a customer selects PayNow on the checkout page, the banking app will automatically open. The customer will review pre-populated payment details before confirming payment.
Under the current system, customers have to save or screenshot the QR code, open the banking app and import the QR code to make payment through PayNow.
The third possible enhancement is to enable larger-value PayNow transactions for government agencies.
The MAS and ABS suggested that this could be done through a sandboxed pilot with appropriate transaction limits and safeguards, to make it more convenient for consumers and businesses to pay government agencies.
A trial of this will begin in 2027.
The fourth proposed enhancement is to expand payment capabilities for emerging business needs, such as request-to-pay, expanded cross-border connectivity and offline payment capabilities.
Mr Gan also said that Singapore will also begin "laying the groundwork for agentic commerce". He is referring to an emerging form of e-commerce in which autonomous artificial intelligence agents make their own purchasing decisions independently.
“These capabilities are longer-term in nature; MAS and ABS will commence foundational work this year,” the two parties said in a joint statement.
TWO PHASES OF STUDY
Payment innovations and new demands have emerged since PayNow was introduced in 2017, the report said.
It said that businesses require payments to be embedded directly into their software, with structured data that reconciles itself. Consumers also want payments to be effortless across channels, merchants and currencies.
The MAS and ABS initiated the PayNow Generation 2 study to look into the new demands and trends.
Compared with payment schemes in other markets, PayNow performed well in terms of adoption and reach, pricing and core user experience.
However, there were gaps in payment requests initiated by merchants and billers, and business-to-business functionalities.
PayNow’s scheme-level capabilities are also less mature than its peers, in areas such as dispute frameworks and interoperability.
The first phase also looked at structural shifts that Singapore’s national payment rails will need to support in the next decade.
That includes pay-by-chat and pay-by-voice experiences, the use of artificial intelligence agents for shopping and payments.
“Singapore will adopt a proactive risk management stance, ensuring that innovation in agentic commerce is accompanied by robust safeguards, governance, and regulatory oversight,” the report said.
The next phase of the study will assess feasibility, implementation requirements and industry readiness. It will also set out how priority enhancements can be operationalised in practice and supported by proof-of-concept demonstrations.
The study will look at the potential impact on user experience, operational efficiency and market adoption as well.
Continue reading...