SINGAPORE -In a joint statement on Thursday, the local PayNow system which allows individuals to pay with a single mobile number is currently connected with the PromptPay version of Thailand, which said that it is a monetary authority of Singapore and the Bank of Thailand (BOT) (April 29).
The connection between the national rapid payment systems of both countries is the world’s first of its kind, they said.
There are three PayNow Banks from Singapore, including four banks in Thailand – Bangkok Bank, Kassikorrn Bank, Krung Thai Bank and Siam Commercial Bank – which have participated in a scheme – DBS Bank, OCBC Bank and UOB.MAS and Bot will progressively expand the transfer limits to facilitate business transactions and add more participating banks. The PayNow-PromptPay connection provides customers of the participating banks with their mobile phones with funds of up to $1,000 or 25,000 baht (s$1,060) every day.
No information fields like the full name of the recipient and the bank account details need to be filled in, as with normal cash flow solutions.This experience resembles how domestic transfers from PayNow and PromptPay are carried out, in which senders can instantly and securely use their mobile banking or payment applications for the purpose of initiating fund transfers.
The funds will flow seamlessly and safely between Singapore and Thailand customer accounts, transfers in less than five minutes, which means that most cross-border transfer solutions require significant improvements over an average of one to two working days.Charges will cost less than 3 percent to 5 percent of the value and will transparently be shown to senders compared with the global average of 11 percent.
In addition, before the shipment of their funds, senders will see the relevant foreign exchange charges, which are closely tied to the current market rates.This is a key cooperation under the 2019 Asean Payment Connectivism Initiative that is closely aligned with the efforts of the Group of 20 (G-20), the Financial Stability Board and other international standard creation organizations to make cross-border payment arrangements faster, cheaper, more inclusive and more transparent. The managing director of MAS, Mr Ravi Menon, said PayNow-PromptPay connection is just the start of a larger project.
“MAS’ shared objective with BOT is to work with our Asean counterparts to expand this bilateral linkage into a network of linked retail payment systems across Asean,” he said in the statement.
“This service by the MAS and the BOT will effectively address customers’ longstanding pain points in the area of cross-border transfers and remittances including long transaction times and high costs.”
Thailand has also aimed to increase cross-border ties with Asean and other countries, said Sethaput Suthiwartnarueput the Governor of BOT; Thailand has initiated QR cross-border payment connectivity to Japan, Laos, Cambodia and Vietnam.
In a separate statement, Mr. Wee Ee Cheong, President of ABS and the Chief Executive Officer of UOB, stated that “This initiative is also an important milestones in future in the connection of payment systems across Asean that allow more bankers to send money and pay for goods and services to their friends and families easily and securely across borders.”
“We are proud to form part of this important work on connecting communities as the world first to enable retail customers of the banks to carry out cross-border fund transfers,” said Mr. Lawrence Chan, Chaipean of Banking Computer Services and Nets Group CEO.
Source: The Straits Times