From 29 April 2021, PayNow (Singapore) and PromptPay (Thailand) users can transfer money across these two countries instantly at any time of the day, using just a mobile number.
It is the first of its kind globally according to the Monetary Authority of Singapore (MAS) and the Bank of Thailand (BOT), in a joint media release. The linkage of Singapore’s PayNow and Thailand real-time retail payment systems is a collaboration between MAS and BOT, both countries’ payment system operators, bankers’ associations and participating banks.
With a mobile number, users can transfer money up to S$1,000 or THB25,000 daily. There’s no need to provide recipient's full name and bank account details. The transfer process is immediate, user-friendly, and can be done at our convenient time.
The fees are also affordable as it's less than 3-5% of the value transfer. Senders are able to view both the fees and the applicable foreign exchange charges before the transfers.
This service by the MAS and the BOT will effectively answer customers' long standing pain points in the area of cross-border transfers and remittances including long transaction times (1-2 working days) and high costs (global average of 11%).
So far, the participating banks are:
Singapore: DBS Bank Limited (DBS), Oversea-Chinese Banking Corporation, Limited (OCBC), United Overseas Bank Limited (UOB)
Thailand: Bangkok Bank Public Company Limited (BBL), Kasikornbank Public Company Limited (KBANK), Krung Thai Bank Public Company Limited (KTB), The Siam Commercial Bank Public Company Limited (SCB)
Future Possibilities
The PayNow-PromptPay linkage is only the beginning. Looking forward, both MAS and BOT are to work with other ASEAN counterparts to expand this bilateral linkage into a network of linked retail payment systems across ASEAN.
With seamless cross-border payment options, there will be more opportunities, in the future, for:
Extending the benefits of a digital economy to a wider range of users
Business expansion for the Small and Mid-size Enterprises (SMEs)
Faster, safer and simpler fund transfer to the loved ones overseas
The e-payment system will also support investors who have overseas properties. They can have the options to interact directly with tenants for any rental payments. The local property management companies are able to liaise directly with the overseas home owners for administration fees, booking fees and rental yields.
Sources:
www.mas.gov.sg
www.straitstimes.com