The Monetary Authority of Singapore (MAS) announced today (November 30) that qualifying non-bank financial institutions (NFIs) will be able to connect directly to PayNow and Fast (Fast And Secure Transfers) money transfer services.
These NFIs include the Grab Financial Group, which operates GrabPay. Razer Fintech, the fintech arm of the Razer games company; and Singtel’s Dash electronic wallet.
From February 2021, users of these NFI wallets will be able to make real-time money transfers between their bank accounts and e-wallets, as well as between different e-wallets.
Currently, most e-wallets require users to top up their funds with debit or credit cards, and money transfers between e-wallets are not possible.
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What does this step mean for us?
MAS CEO Ravi Menon said the move will help complete the “last mile of the Singapore electronic payment journey”.
“Consumers who don’t have direct access to debit or credit cards to fund their e-wallets can now do so directly from their bank accounts. … The introduction of electronic payments will be even easier for individuals and businesses. “
This step also benefits distributors.
Businesses that are partners of any of the 23 e-wallets or Fast banks or nine PayNow, which are traditionally closed ecosystems, will soon be able to receive real-time payments from other e-wallet users or mobile banking applications that will join FAST or Pay. now.
“This allows businesses to access a larger consumer market than ever before to receive electronic payments instantly and transparently,” MAS said.
In a Facebook post, Minister Vivian Balakrishnan sees the move as “another boost for our electronic payment systems in Singapore.”
“This means more convenience for all of us, as e-wallets and bank accounts are more compatible with each other through APIs,” he added.
Selected image source: Vulcan Post