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SINGAPORE: Starting in February next year, eligible non-bank financial institutions will have direct access to retail payment services such as Fast and Secure Transfers (FAST) and PayNow.
This will allow users to make real-time fund transfers between bank accounts and e-wallets, as well as through different e-wallets, the Monetary Authority of Singapore (MAS) said in a press release on Monday (Nov 30).
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Currently, most electronic wallets require the use of debit or credit cards to top up funds. It is also not possible to make transfers between electronic wallets.
Businesses that are associated with any of PayNow’s 23 FAST or nine banks will benefit from this measure.
E-wallets that have traditionally been “closed-loop ecosystems” will also be able to receive real-time payments from other e-wallet users of mobile banking applications who join FAST or PayNow.
“This will allow companies to access a larger consumer market than before to receive electronic payments instantly and seamlessly,” said MAS.
Eligible institutions, which must be licensed as primary payment institutions under the Payment Services Act, will be able to connect directly through a new Application Programming Interface (API) payment gateway.
“The API payment gateway is better oriented to the technological architecture of banks and non-bank financial institutions, and it can also be used by other banks and non-bank financial institutions in the future,” MAS said.
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MAS Managing Director Ravi Menon said direct access to FAST and PayNow “closes the last mile gap in Singapore’s electronic payments journey.”
“Consumers who do not have immediate access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts,” said Mr. Menon.
He added that the adoption of electronic payments will be “even simpler” for individuals and businesses.
