Singapore Pools to Absorb Transaction Fees for Electronic Payments
Singapore: Singapore Pools has announced a significant change in its fee structure, effective from Tuesday, November 11. The organization will now absorb transaction fees for electronic payment options, including NETS and PayNow, as part of a collaborative effort with partner banks and the Association of Banks in Singapore (ABS).
This decision comes after a thorough review of existing contracts with partner banks and NETS, which allowed for the recovery of processing costs associated with PayNow and NETS services. Singapore Pools has decided to take on these transaction fees, ensuring a more cost-effective and convenient experience for its customers.
Previously, Singapore Pools charged customers 10 cents for every PayNow transaction, a practice that had drawn scrutiny. The ABS, which owns the PayNow scheme, has rules prohibiting merchants from imposing surcharges on customers using the service. This led to a parliamentary question regarding the surcharges, and Deputy Prime Minister Gan Kim Yong confirmed that ABS was aware of the surcharge imposed by Singapore Pools.
Mr. Gan also stated that ABS was engaging with Singapore Pools to address this issue. The ABS director, Ong-Ang Ai Boon, welcomed Singapore Pools' decision, emphasizing that PayNow is intended to be a free service, providing speed and convenience to consumers. This move aligns with the ABS's vision for PayNow as a cost-free payment method.
Additionally, Singapore Pools mentioned its efforts to absorb eNETS transaction fees, although eNETS payments will be temporarily suspended due to the significant system and operational changes required. This comprehensive approach demonstrates Singapore Pools' commitment to enhancing the overall payment experience for its customers.
