The real-time payments systems linkage between Singapore’s PayNow and India’s Unified Payments Interface (UPI) will make cross-border transactions faster and cheaper, in addition to increased convenience, according to industry participants.
The Monetary Authority Singapore and the Reserve Bank of India, on Tuesday, launched the PayNow-UPI linkage, where DBS Bank is the first and only participating bank from Singapore.
“With India being one of DBS’ biggest markets for overseas remittances, this is a welcome addition to our wide-ranging suite of payment solutions for SMEs, retail customers and especially migrant workers, who now have another convenient option to send money,” said Shee Tse Koon, Singapore Country Head, DBS Bank.
Effective immediately, PayNow-UPI will be progressively rolled out to familiarise DBS/POSB (Post Office Savings Bank) customers with the new service. To start with, select customers will be able to use the facility to transfer funds of up to SGD 200 per transaction and SGD 500 per day.
The service will be extended to all customers by March 31, to enable cross-border transfers of up to SGD 1,000 per day, said DBS Bank.
Akash Sinha, co-founder and CEO, Cashfree Payments, said the move will significantly benefit migrant workers, tourists, small businesses and enterprises, and establish a significant foundation for cross-border payments between India and ASEAN countries.
Individuals and businesses in India and Singapore can now make instant, low-cost, and secure cross-border transactions in real-time, which will lead to more convenience and increased speed and cost effectiveness, said industry players.
“This initiative will not only boost digital payments but also bolster economic cooperation, trade and investment between the two countries, as businesses can now transact with each other more easily and cost-effectively,” said Rajsri Rengan, Head of Banking and Payments, India and Philippines, FIS.
At presen6t, in order to add a beneficiary to initiate first-time transfer of funds usually takes several hours for activation of services. However, with this payment facility, funds held in bank accounts or e-wallets can be transferred using just the UPI ID, mobile number, or VPA (virtual payment address), thus eliminating the need for beneficiary, bank account or other details.
“Since this is a new payment facility, its success will also depend on the guidance and assistance that the customers in Singapore might need. We look forward to the role of fintechs in scaling this facility further,” said Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.