PayNow Corporate was introduced on August 13, 2018, as a corporate extension of the Association of Banks in Singapore’s peer-to-peer transfer service PayNow (ABS).
Companies incorporated in Singapore can now use the PayNow infrastructure to instantly send or receive payments using their Unique Entity Number (UEN) or scanning QR codes.
PayNow Corporate and Business Loans
The advent of this service, according to most experts, will make the procedure of moving funds more accessible than ever before.
1. PayNow Corporate allows transactions to be more accurately tracked on bank statements
Financial institutions are currently having difficulty effectively tracking and accounting for cash or check transactions as legitimate business operations.
We anticipate that the convenience of using PayNow Corporate will eventually replace cash and check transactions. Credit officers no longer have to identify cheque payments or receipts personally.
This will clear up any misunderstandings and help financial institutions to assess an SME’s actual creditworthiness.
2. PayNow Corporate may replace “off-the-bank-statement” cash transactions
(Edited on September 17, 2018) PayNow Corporate transactions will be charged to the SME for all incoming and outgoing PayNow transactions, according to Lendingpot, but peer-to-peer payments will remain free.
We believe that the local banks have made a mistake and will prevent enterprises from using the system widely. In Singapore, cash will continue to reign supreme.
Because most corporate transaction services, such as check clearance, NETS, or credit card payments, are costly, small business owners frequently deal in cash.
We may reasonably expect PayNow Corporate to be free, based on PayNow (the peer-to-peer version) launched earlier.
There will be no barrier for businesses, tiny firms, to adopt digital payments and integrate cash transactions into the banking system if this is the case.
This will enable banks to appropriately estimate credit scores for small business loan applications once again.
3. PayNow Corporate may be able to eradicate “returned cheques.”
When compared to traditional payment options like GIRO or cheques, PayNow Corporate is not only lightning-fast but also simple to use. (See Fig. 1 for further information.)
On the other hand, the hidden benefit is that there will no longer be any returned checks or unsuccessful GIRO transactions.
Bounced checks from customers are no longer an issue for businesses. This improves the security of commercial transactions.
On the other hand, SMEs that write checks that are returned due to inadequate cash are frequently penalized by financial institutions during the credit scoring process for a business loan application.
There will be no more returned checks if you use PayNow Corporate because a transfer is not feasible without sufficient cash in the account.
As a result, SMEs will improve their credit scores, increasing their chances of getting approved business loans.
- PayNow/PayNow Corporate
- Interbank GIRO
Receipt of Payment
- Scan SG QR with cellphone number and Singapore NRIC/FIN/UEN Almost instantaneous, available 24 hours a day, seven days a week
- Bank Name and Account Number are required. Almost immediate, open 24 hours a day, seven days a week
- Up to 2 working days
- Up to 3 working days
Who are the participating banks?
The following are the seven banks that now participate in the PayNow Corporate service:
• DBS Bank / POSB
• OCBC Bank
• Standard Chartered Bank
Bank of China and ICBC will join in the subsequent stages. PayNow now has access to a vast banking client base for e-payment in Singapore, thanks to the nine collaborating banks.
Businesses can register by visiting the PayNow Corporate web portal of partner banks and filling out the appropriate registration details. Businesses should first get their UEN from www.uen.gov.sg to begin collecting cash through PayNow.