Know How PayNow Is Enabling Seamless Cross-Border Transactions

Financial transactions extend past national borders these days. Businesses, freelancers, and families all rely on the quick money movement. And that too, securely and efficiently between countries. Traditionally, cross-border payments have been slow and complex. The worst: costly. Processing could take anywhere from one to three business days, requiring detailed account information and often incurring significant fees. Here, innovative payment solutions have emerged to simplify cross-border transfers, and Singapore’s PayNow stands at the forefront of this transformation.

The Evolution of Cross-Border Payments

Singapore’s PayNow system has long simplified domestic transfers, allowing users to send money instantly by using a mobile number, NRIC/FIN, or UEN linked to a bank account. Building on this foundation, PayNow has extended its capabilities to international transactions through strategic linkages with other fast payment systems in the region. PayNow facilitates near-instant and secure cross-border payments via counterpart connections.

These linkages are very helpful in enhancing speed and convenience. They also reduce the friction that was traditionally associated with international remittances. Users no longer need to input full bank account details or navigate complex routing numbers. Instead, a simple mobile number or virtual payment address (VPA) suffices, mirroring the domestic PayNow experience.

PayNow & PromptPay: Singapore-Thailand Transfers

Launched in April 2021, the PPPN linkage between Singapore and Thailand connects PayNow and PromptPay through cross-border gateways operated jointly by both countries’ payment system operators. In its initial phase, the system allows customers of participating banks to transfer funds quickly and securely between the two countries.

A Singapore PayNow user can send money to a Thai recipient by simply entering their registered PromptPay mobile number. Likewise, a Thai user can transfer funds to Singapore with a recipient’s PayNow mobile number. Transfers occur within minutes, replacing the multi-day delays of traditional methods, while maintaining the same simplicity and security as domestic transactions.

PayNow & UPI: Singapore-India Transfers

The PayNow-UPI linkage offers another significant advancement in cross-border payments. Through this system, customers of participating banks and non-bank financial institutions in Singapore and India can send and receive funds 24/7, in near real time, with minimal effort.

Singaporean users sending money to India need only the recipient’s registered UPI ID, while Indian users sending funds to Singapore can rely on the recipient’s registered PayNow mobile number or VPA. This integration provides a fast, cost-effective, and secure channel for cross-border transactions, opening opportunities for businesses and individuals engaged in frequent international payments.

PayNow & DuitNow: Singapore-Malaysia Transfers

A similar linkage exists between Singapore’s PayNow and Malaysia’s DuitNow system. Customers can transfer funds instantly and securely across the two countries, again using only a registered mobile number. Singapore PayNow users can send money to Malaysia using the recipient’s DuitNow mobile number, while Malaysian users can transfer funds to Singapore using a PayNow mobile number or VPA.

These seamless transfers remove traditional barriers in cross-border transactions, fostering closer economic ties between Singapore, Malaysia, and the wider region.

How PayNow Works

To use PayNow for domestic or cross-border payments, users must first register their mobile number, NRIC/FIN, or UEN with a participating bank. Registration is completed via the bank’s online platform or mobile app.

Once registered, initiating a transfer is straightforward:

1. Select PayNow as the payment method.
2. Enter the recipient’s PayNow-linked mobile number, NRIC/FIN, UEN, or relevant VPA.
3. Specify the transfer amount and optionally include a reference description.
4. Verify the recipient’s information and confirm the transaction.

The transfer gets instant processing through the FAST network (Fast and Secure Transfers). And the confirmation is sent to both the sender and the recipient. This instant processing is consistent whether the transfer is domestic or conducted via the PayNow cross-border linkages.

The Benefits of PayNow for Cross-Border Transactions

The introduction of PayNow linkages with PromptPay, UPI, and DuitNow brings several benefits to users:

• Speed: Transfers occur in minutes, a vast improvement over conventional bank remittance timelines.
• Simplicity: Users only need a mobile number or VPA and not full account details.
• Accessibility: Transactions are available 24/7, without dependence on banking hours or regional holidays.
• Security: Payments are routed through participating banks and secured via the FAST network which reduces exposure to fraud.
• Cost-Effectiveness: Lower transaction fees and faster processing make international transfers more economical, particularly for individuals sending remittances or businesses engaged in trade.

There is a proper removal of administrative hurdles and enabling of near-instant transfers through PayNow. It encourages wider adoption of digital payment solutions and supports economic integration across borders.

PayNow Adoption and Bank Participation

Most major banks operating in Singapore support PayNow, including Bank of China, Citibank Singapore, DBS/POSB, HSBC, ICBC, Maybank, OCBC, Standard Chartered, United Overseas Bank, J.P. Morgan, State Bank of India, and MariBank. Integration into online banking platforms and mobile apps ensures that PayNow is accessible to a broad range of users.

Conclusion

So, you see that PayNow’s linkages are very influential in the cross-border payment systems. The platform can actually reduce the friction that has long troubled international transfers. Businesses and freelancers can enjoy:

• Faster cash flow
• Reduced operational headaches
• A more predictable transaction experience

For the wider financial ecosystem, PayNow demonstrates the potential of interoperable payment networks to unify regional economies.