Managing director of the Monetary Authority of Singapore Ravi Menon (Photo: businesstimes.com.sg) Singapore (VNA) – Singapore is opening up access to the payment rails for non-bank e-wallet players that meet the necessary risk-management standards, according to managing director of the Monetary Authority of Singapore Ravi Menon.
Eligible non-bank financial institutions will have direct access to the banking system’s real-time retail payments infrastructure from February 2021. This will give non-bank players – major payment institutions under the Payment Services Act – access to payment rails for them to offer PayNow services.
The access is via FAST, Singapore's round-the-clock electronic funds transfer service through which participating entities facilitate instant transfers of Singapore dollar funds between customers.
There are currently 23 entities offering FAST services, and nine banks offering PayNow.
The Direct FAST Working Group includes the NFIs of Grab Financial Group, Liquid Group, MatchMove, Razer Fintech, Singtel Dash and TransferWise.
Menon said MAS' view is that the payments network is like a utility that exists to serve all customers.
But participating NFIs must meet threshold standards of risk management, including in technology risk management, and anti-money laundering standards.
He also said that NFIs' direct access to FAST and PayNow "closes the last-mile gap" in Singapore's e-payments journey.
Direct connection to FAST and PayNow will enable users of NFI e-wallets to make real-time fund transfers between bank accounts and e-wallets, as well as across different e-wallets.
Currently, most e-wallets require the use of debit or credit cards to top up funds, and fund transfers between e-wallets are not possible.
However, businesses that partner any of the 23 FAST or nine PayNow banks or e-wallets - traditionally closed-loop ecosystems - will be able to receive real-time payments from other users of e-wallets or mobile banking applications that will be joining FAST or PayNow.
This will enable businesses to access a larger market of consumers than before for receiving e-payments instantly and seamlessly, said MAS.
FAST and PayNow have served the needs of most consumer and business users in Singapore. FAST transaction volumes averaged more than 12.5 million a month in the third quarter this year while monthly transaction volumes for PayNow account for almost half of all FAST transactions./.
VNA
