Singapore Pools will no longer impose a S$0.10 fee on PayNow transactions as it moves to absorb transaction fees for all electronic payment methods with effect from today (11 Nov).
The decision follows a review with the Association of Banks in Singapore (ABS), partner banks, and NETS on transaction fees and processing cost recovery.
Source: Wikipedia, for illustration purposes only
Singapore Pools said the move underscores its commitment to prudent financial management and its mission of countering illegal gambling while channelling surplus funds for the benefit of Singaporeans.
“This initiative reflects Singapore Pools’ commitment to enhancing customer convenience and aligning with evolving e-payment practices,” the company added in a statement.
The review also covered existing contracts that allowed partners to recover processing costs related to PayNow and NETS services.
As part of the transition, Singapore Pools said that eNETS payments will be temporarily suspended while system and operational changes are made to support the absorption of transaction fees.
ABS welcomed the move, describing it as a positive step for consumers.
“We welcome Singapore Pools’ decision to absorb the transaction fee on customers when they use PayNow for their transactions,” said Ong-Ang Ai Boon, Director of ABS.
She added that PayNow “provides a secure and easy-to-use e-payment method that many Singaporeans use every day” and is “intended to be provided free to consumers choosing the speed and convenience” it offers when making payments.
Up until now, Singapore Pools had charged a S$0.10 fee on PayNow transactions.
In a written parliamentary reply on 14 Oct, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, who also chairs the Monetary Authority of Singapore (MAS), confirmed that ABS prohibits merchants from levying surcharges on PayNow payments.
He noted that while over 300,000 businesses in Singapore use PayNow as a safe and low-cost payment method, transaction fees for payments received from consumers are generally waived by major retail banks, with only minimal charges for optional services such as payment notifications.
Mr Gan added that ABS, which owns the PayNow scheme, was aware that Singapore Pools had been imposing a surcharge on PayNow transactions.
Through the relevant PayNow banks that maintain contractual relationships with Singapore Pools, ABS had been engaging the company to address the practice.
Speaking to MS News previously, Singapore Pools explained that the S$0.10 fee was “not a new practice”, noting that it had been implemented before ABS’ rules prohibiting such surcharges took effect.
The company also told The Straits Times that all charges were disclosed to customers upfront before each transaction.
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Featured image adapted from Wikipedia and TheSmartLocal, for illustration purposes only.