PayNow: The must-have payment method for merchants in Singapore

Merchants seeking to drive business growth know the value of staying ahead of consumer preferences. And even in the fast-evolving world of digital payments, certain trends are so compelling that savvy merchants should seize the opportunity without hesitation.

Take QR codes: as of 2022, these two-dimensional codes were already being used for payments by 59% of respondents in Southeast Asia. By 2028, the volume of QR code payments in the region will grow by over 590%, according to a new Juniper Research study.

QR codes, real-time payment gateways, and e-wallets are all on the rise in Southeast Asia, all to the benefit of both shoppers and merchants. In Singapore, PayNow covers all of the above to emerge as a game-changing payment method.

Known for facilitating seamless, instant transfers, PayNow is a vital payment solution for businesses aiming to succeed in cashless markets like Singapore. Here, we explore PayNow's features, benefits, and operational aspects, and how merchants can make informed decisions about integrating this payment method.

Overview of PayNow: what it is and why it matters

PayNow is a digital payment system used by retail customers of participating banks and non-bank financial institutions (NFIs) to instantly send and receive Singapore dollars from one bank or e-wallet account to another using just their mobile number, personal ID number, or Virtual Payment Address (VPA) as identifiers.

The sender no longer needs to know the recipient's bank/e-wallet provider and account number when transferring money via PayNow. Customers can pay merchants directly from their bank accounts or e-wallets, with no need for physical cash or cards.

PayNow allows instant, cashless transactions using QR codes. Adopted as part of Singapore's cashless economy initiatives, QR codes have gained widespread acceptance across businesses, banks, and NFIs. The service is provided free of charge to retail customers.

This payment method is widely used for:

l In-store purchases: Customers can scan QR codes at checkout counters, enabling payment without ever involving cash.

l Online shopping: QR codes can be used to redirect customers to e-commerce platforms or ongoing promotions.

l Bill payments: Simplifies utility and service payments for users.

PayNow's success is rooted in its simplicity, speed, and security, making it indispensable for merchants operating in Singapore's rapidly digitising cashless economy.

Key features of PayNow: Empowering businesses

PayNow's feature set, from seamless QR code integration to cross-border payments capabilities, can provide a competitive boost to merchants in Singapore's fast-evolving cashless economy.

Real-time transactions

PayNow is built on top of Singapore's FAST electronic funds transfer service, which helps facilitate instant fund transfers between customers and businesses. Its near-instantaneous clearing time makes PayNow especially valuable for businesses seeking immediate liquidity.

QR code convenience

PayNow allows customers to make payments by scanning a QR code via their trusted mobile banking application. Merchants, for their part, can use PayNow QR codesto accept payments from customers. They can display a unique PayNowQR code at the point of sale, on billing invoices, or on their e-commerce platform — which customers can scan to facilitate payment.

The PayNow QR code is integrated with the Singapore Quick Response (SGQR) Code, a single standardised national QR code that combines multiple payment schemes.

Wide adoption across Asia

PayNow is supported by Singapore's leading banks and integrated with major payments platforms like Antom, making it a trusted and reliable option for merchants.

Linkages across Asia allow users in Singapore, Thailand and India to transfer funds directly over the PayNow platform. The PayNow-PromptPay linkage between Singapore and Thailand was launched in 2021 (the first of its kind in the world), while the PayNow-UPI connection with India debuted in 2022.

Cost-effective transactions

PayNow is offered free of charge to retail customers. Banks and payment service providers may charge merchants a fee for optional value-added services; these fees offset the costs of running the infrastructure. PayNow participating institutions absorb these costs; merchants are prohibited from passing on these costs to customers.

Seamless integration with e-commerce platforms

PayNow is compatible with e-commerce platforms such as Shopify and BigCommerce, enabling smooth implementation with existing systems.

Benefits of adopting PayNow for merchants

Merchants who integrate PayNow into their payment options can expect numerous benefits, including the following:

Enhanced customer experience

Customers in Asia prefer payment methods that are fast, familiar, and secure with an increasing preference for cashless methods over cash (60% over 26%, to go by a recent Visa study).

PayNow meets these criteria, offering a seamless, cashless payment journey that improves customer satisfaction and loyalty. PayNow QR codes eliminate the need to manually enter payment details, encouraging customers to make purchases and leading to increased sales for merchants.

Increased conversion rates

One of the biggest challenges for merchants is cart abandonment; in other words, when a customer adds items to an online shopping cart but doesn't complete the purchase. By offering PayNow as a local payment option, businesses can reduce this risk and capture more sales.

Improved cash flow

PayNow processes transactions in near real-time, enabling merchants to receive payments from their customers instantly. This is significantly faster than traditional payment methods like cheques or bank transfers, which can take several days to process.

With PayNow, businesses can access funds quickly: a critical factor for managing operations, inventory, and other financial needs in a volatile business space.

Secure and compliant

PayNow uses bank-grade encryption and adheres to strict compliance standards, ensuring all transactions are secure and protected from fraud. PayNow utilises the same high security standards established by the Singapore banking industry for funds transfer. The system includes multiple layers of security, including KYC verification, recipient name verification, and transaction notifications, to protect both merchants and customers from fraud.

Adaptability to consumer trends

Asian consumers and merchants are driving a pronounced shift to cashless payments — by 2027, new payment methods like digital wallets and QR code payments will make up around 30% of total transaction volume. Consumers value speed and convenience; by offering PayNow, merchants can align with these preferences and stay competitive.

Operational aspects of PayNow

Before onboarding PayNow into their payment processes, merchants should consider the following operational aspects and their impact on business:

Payout timing

One of PayNow's most appealing features is its instant payout mechanism. PayNow leverages the real-time capabilities of FAST to achieve instant payouts —ensuring funds are transferred in real time, almost immediately from the customer's point of view, compared to traditional payment methods that take days to process. This speed enhances cash flow and reduces delays for businesses.

Navigating refunds and disputes

Whether it's a mistaken payment or a cancelled order, PayNow simplifies the refund process — allowing merchants to resolve customer issues efficiently. You can request a refund using your payments platform's API or dashboard. Your payments platform will notify you of the refund status. Refunds may take up to 90 days to clear.

In the rare event of a payment dispute, PayNow directs merchants or customers to work directly with the affected bank/NFI to resolve the issue. The bank/NFI must be contacted immediately to report the dispute, and the parties should follow the bank/NFI's procedures to rectify the dispute.

Supported gateways for PayNow integration

PayNow works seamlessly with leading payment gateways, including Antom. Beyond seamless access to PayNow, Antom offers access to over 40 payment options, bank transfers, online banking, and digital wallets like Alipay+, GrabPay Wallet and more.

PayNow's broad acceptance ensures that businesses can integrate PayNow without significant technical hurdles, enabling a smoother transition to this payment method.

Accelerate your business in Singapore with PayNow and Antom

PayNow is constantly expanding — adding new banks, NFIs, and partnerships across Southeast Asia to improve its customers' access to cashless payment.

Merchants aiming to establish or strengthen their presence in Singapore should look into adopting PayNow— its seamless integration with payment gateways, robust security features, and lightning-fast transactions make it indispensable in Singapore's competitive retail landscape.

Looking to unlock the potential of PayNow for your business? At Antom, our payment specialists are ready to guide you through local payment solutions, enabling you to optimise your payment strategy and deliver exceptional customer experiences. Contact us today and let us help you take your business to the next level in Singapore or anywhere else in the Asia-Pacific region.