E-Wallets Will Soon Have Access to E-Payment Platforms FAST and PayNowby Fintech News Singapore November 30, 2020
The Monetary Authority of Singapore (MAS) announced that non-bank financial institutions (NFIs) that are licensed as a major payment institution under the Payment Services Act, will be allowed to connect directly to Fast and Secure Transfers (FAST) and PayNow from February 2021.
Direct connection to FAST and PayNow will enable users of NFI e-wallets to make real-time funds transfers between bank accounts and e-wallets as well as across different e-wallets.
Currently, most e-wallets require the use of debit or credit cards to top-up funds, and funds transfers between e-wallets are not possible.
NFIs will be able to connect directly through a new Application Programming Interface (API) payment gateway developed by the Direct FAST Working Group (DFWG), with guidance from the Singapore Clearing House Association (SCHA) and The Association of Banks in Singapore (ABS), which govern FAST and PayNow respectively.
Mr Ravi Menon, Managing Director of MAS said,
“Direct access by NFIs to FAST and PayNow closes the last-mile gap in Singapore’s e-payments journey. Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts.
Our vision to enable complete real-time payments interoperability will now become a reality. Adoption of e-payments will become even more simple for individuals and businesses. MAS thanks the members of the DFWG for their spirit of partnership that brought to fruition this major milestone for e-payments in Singapore.”
Mrs Ong Ai-Boon, Director of ABS said,
“ABS welcomes new participants to FAST and PayNow. This is the first time the industry has opened access to these two important e-payment platforms to non-banks. The move underscores how much ABS member banks have innovated and transformed to prepare for the digital future, and reaffirms our commitment to give customers greater convenience and options.
FAST and PayNow adoption rates have exceeded expectations and we are confident that the addition of new players will help accelerate the national path towards a less-cash economy.”
Featured image credit: Unsplash