The Bank of Thailand (BOT) and Monetary Authority of Singapore (MAS) launched a linkage of Thailand’s Promptpay and Singapore’s Paynow real time retail payment services system.
Customers of the participating banks in Thailand and Singapore will be able to transfer up to S$1000 or 25,000 baht daily between both countries, using just a mobile number when using this payment services system.
The process is streamlined to make it efficient such that fields such as recipient’s full name and bank account details, which are typically required for normal remittances, are not required for this payment services system. The transfers will be completed within a matter of minutes, representing a marked improvement over the average of 1-2 working days needed by most cross-border remittance solutions. In Singapore, DBS Bank, OCBC and United Overseas Bank will be the providers participating in this payment services system initiative.
Fees in using the payment services system will be benchmark against market fees and will be affordable and transparently displayed to encourage more usage of the payment service. Senders will be able to view the applicable foreign exchange charges prior to sending funds, with these rates benchmarked closely to prevailing market rates.
The new payment services system will address long standing pain points in the area of cross-border transfers and remittances including long transaction times and high costs. This is a good move to strengthen the financial integration and well-being of the ASEAN region.
As a background Payment Services Act (“PSA”) came into effect in Singapore on 28 January 2020 and it streamlines payment services regulatory framework under a single piece of legislation. Existing payment service providers prior to introduction of the Payment Services Act [“PSA”] were required to provide notification to Monetary Authority of Singapore [“MAS”] to be granted a temporary exemption from the requirement to hold a PSA licence. Entities were required to submit a licence application to Monetary Authority of Singapore [“MAS”] within the exemption period to comply with PSA.
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