The Monetary Authority of Singapore (MAS) announced today (Nov 30) that eligible non-bank financial institutions (NFIs) will be allowed to connect directly to funds transfer services PayNow and Fast (Fast And Secure Transfers).
These NFIs include Grab Financial Group, which operates GrabPay; Razer Fintech, the financial technology arm of gaming firm Razer; and Singtel’s e-wallet Dash.
Starting from February 2021, users of these NFI wallets will be able to make real-time fund 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 using debit or credit cards, and funds transfers between e-wallets are not possible.
What Does This Move Mean For Us?
MAS managing director Ravi Menon said this move helps to close the “last-mile gap in Singapore’s e-payments journey.”
“Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts. … Adoption of e-payments will become even more simple for individuals and businesses.”
This move will also benefit merchants.
Businesses that partner any of the 23 Fast or nine PayNow banks, or e-wallets that have traditionally been closed-loop ecosystems will soon be able to receive real-time payments from other users of e-wallets or mobile banking apps 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.
In a Facebook post, Minister Vivian Balakrishnan deems the move as “another big boost for our e-payment systems in Singapore.”
“This means greater convenience for us all as e-wallets and bank account become more inter-operable using APIs,” he added.
Featured Image Credit: Vulcan Post