Singapore PayNow Integrates With India's UPI

The pandemic acted as a significant catalyst in driving the widespread adoption of digital payments and e-commerce in India. A platform that was initially thought to be confined to urban districts, UPI has rapidly emerged as the go-to payment interface for buyers and sellers alike, ranging from big retailers to small vendors. The trust placed in UPI has been instrumental in shaping this ecosystem. With its user-friendly and seamless interface, UPI has completely transformed the way we transfer funds and conduct transactions, eliminating the need for laborious paperwork and long queues. It has ushered in an era of quick, secure, and hassle-free payments, revolutionising the financial landscape.

UPI has shown a quantum jump comparatively to become one of the preferred modes of payment. In this sense, the progress of UPI has been remarkable. As per the economic survey 2022-23, in FY19, UPI accounted for 17 per cent of the country's total 3,100 crore digital transactions. The next fiscal year saw UPI’s share rise to more than 27 per cent as it processed 1,250 crore transactions out of 4,600 crore digital transactions. In FY22, UPI accounted for 52% of the total 8,840 crore financial digital transactions.

On average, between FY19-22 (calendar year), growth in UPI-based transactions in value and volume terms have been 121 per cent and 115 per cent, respectively. In Dec 2022, UPI reached its highest-ever mark with 782 crore transactions worth ₹12.8 lakh crore.

QR-based payments are the most popular. In just 5 years, over 23 crore UPI QRs have been deployed in the market for accepting merchant payments, from only 25 lakhs devices that were accepting merchant payments before this.

The benefits of UPI became evident during the Covid-19 pandemic when UPI served as a critical lifeline, especially for small and micro merchants. Further, UPI has processed 2,922 crore contactless merchants’ transactions with a total value of over ₹21.7 lakh crore in FY23 (till December 2022).

 

Recently, cross-border digital fund transfers between Singapore and India have become faster and more efficient as Singapore PayNow and India’s UPI have been linked. This integration aims to provide seamless payment experiences for individuals and businesses transacting between the two countries.

 

Singapore residents can now instantly transfer funds to bank accounts in India using their mobile numbers or UPI IDs, while Indian residents can transfer funds to Singaporean bank accounts via PayNow using their mobile numbers or PayNow IDs. The transfer can be initiated using the respective apps of PayNow or UPI, and the funds will be transferred almost instantly between the two countries.

 

The collaboration involves eight banks, including DBS, Liquid Group, Axis Bank, and State Bank of India from both countries. This initiative is expected to reduce the cost and time required for cross-border payments, thus boosting trade and business ties between Singapore and India. It will also provide a secure and transparent payment channel for individuals and businesses to transact with each other.

 

According to a December 2022 World Bank report, remittances from Singapore to India were on track to exceed $100 billion in 2023, making Singapore the fourth-highest remitting nation to India, accounting for 5.7 per cent of all inbound remittances. The average cost of transferring $200 (Rs 16,518) from Singapore to India through platforms like InstaReM and Singtel Dash is $3.95 (Rs 326.24), taking up to one-two business day. Bank-to-bank remittance costs around $6 (Rs 495.55) for the same amount, taking up to 24 hours. Integrating PayNow and UPI is likely to reduce these charges and transaction time. The Reserve Bank of India has set a limit of 1,000 Singapore dollars per day for Indian users to remit funds to Singapore using this service.

 

Since its inception in 2016 with 21 banks, the UPI ecosystem in India has witnessed significant growth, and now it includes 390 banks. This expansion has facilitated billions of digital transactions each month. The National Payments Corporation of India (NPCI) oversees the management of the UPI system, which involves various participants such as payer payment service providers (PSPs), payee PSPs, remitter banks, beneficiary banks, NPCI, bank account holders, and merchants.

The pandemic acted as a significant catalyst in driving the widespread adoption of digital payments and e-commerce in India. A platform that was initially thought to be confined to urban districts, UPI has rapidly emerged as the go-to payment interface for buyers and sellers alike, ranging from big retailers to small vendors. The trust placed in UPI has been instrumental in shaping this ecosystem. With its user-friendly and seamless interface, UPI has completely transformed the way we transfer funds and conduct transactions, eliminating the need for laborious paperwork and long queues. It has ushered in an era of quick, secure, and hassle-free payments, revolutionising the financial landscape.

UPI has shown a quantum jump comparatively to become one of the preferred modes of payment. In this sense, the progress of UPI has been remarkable. As per the economic survey 2022-23, in FY19, UPI accounted for 17 per cent of the country's total 3,100 crore digital transactions. The next fiscal year saw UPI’s share rise to more than 27 per cent as it processed 1,250 crore transactions out of 4,600 crore digital transactions. In FY22, UPI accounted for 52% of the total 8,840 crore financial digital transactions.

On average, between FY19-22 (calendar year), growth in UPI-based transactions in value and volume terms have been 121 per cent and 115 per cent, respectively. In Dec 2022, UPI reached its highest-ever mark with 782 crore transactions worth ₹12.8 lakh crore.

QR-based payments are the most popular. In just 5 years, over 23 crore UPI QRs have been deployed in the market for accepting merchant payments, from only 25 lakhs devices that were accepting merchant payments before this.

The benefits of UPI became evident during the Covid-19 pandemic when UPI served as a critical lifeline, especially for small and micro merchants. Further, UPI has processed 2,922 crore contactless merchants’ transactions with a total value of over ₹21.7 lakh crore in FY23 (till December 2022).

 

Recently, cross-border digital fund transfers between Singapore and India have become faster and more efficient as Singapore PayNow and India’s UPI have been linked. This integration aims to provide seamless payment experiences for individuals and businesses transacting between the two countries.

 

Singapore residents can now instantly transfer funds to bank accounts in India using their mobile numbers or UPI IDs, while Indian residents can transfer funds to Singaporean bank accounts via PayNow using their mobile numbers or PayNow IDs. The transfer can be initiated using the respective apps of PayNow or UPI, and the funds will be transferred almost instantly between the two countries.

 

The collaboration involves eight banks, including DBS, Liquid Group, Axis Bank, and State Bank of India from both countries. This initiative is expected to reduce the cost and time required for cross-border payments, thus boosting trade and business ties between Singapore and India. It will also provide a secure and transparent payment channel for individuals and businesses to transact with each other.

 

According to a December 2022 World Bank report, remittances from Singapore to India were on track to exceed $100 billion in 2023, making Singapore the fourth-highest remitting nation to India, accounting for 5.7 per cent of all inbound remittances. The average cost of transferring $200 (Rs 16,518) from Singapore to India through platforms like InstaReM and Singtel Dash is $3.95 (Rs 326.24), taking up to one-two business day. Bank-to-bank remittance costs around $6 (Rs 495.55) for the same amount, taking up to 24 hours. Integrating PayNow and UPI is likely to reduce these charges and transaction time. The Reserve Bank of India has set a limit of 1,000 Singapore dollars per day for Indian users to remit funds to Singapore using this service.

 

Since its inception in 2016 with 21 banks, the UPI ecosystem in India has witnessed significant growth, and now it includes 390 banks. This expansion has facilitated billions of digital transactions each month. The National Payments Corporation of India (NPCI) oversees the management of the UPI system, which involves various participants such as payer payment service providers (PSPs), payee PSPs, remitter banks, beneficiary banks, NPCI, bank account holders, and merchants.