How PayNow Makes Cashless Payments Faster and Cheaper for Singapore Merchants
- Pedro Garcia
- 7 days ago
- 4 min read
Launched and promoted by Singapore banks under the guidance of the Monetary Authority of Singapore in 2017, PayNow enables real-time bank-to-bank transfers using a mobile number, NRIC, or corporate UEN. For merchants, this changes accepting digital payments. Rather than waiting for card settlements or reconciling multiple payment channels, merchants can receive funds almost instantly and reduce the time and cost associated with daily till management.
According to the Monetary Authority of Singapore and the Association of Banks in Singapore, PayNow transaction volumes exceeded S$100 billion in 2023, with adoption driven by both consumers and small enterprises. This builds on steady growth since launch as transaction value more than doubled from S$10.1 billion in 2019 to S$22.6 billion in 2020. PayNow now serves as the preferred method of instant payment for everyday transactions and business settlements, solidifying its role in Singapore’s digital payments backbone.
How Does PayNow Work?
PayNow works within the SGQR and interbank framework. A merchant generates an SGQR code that consolidates multiple payment options into a single scannable code. Customers scan that code with their bank app or digital wallet, confirm the amount, and authorise the payment. The funds move from the customer’s bank account to the merchant’s account in real time, and the merchant receives a settlement confirmation.
As of 2022, more than 210,000 merchants in Singapore have adopted SGQR codes that integrate PayNow acceptance. For customers, this means a consistent QR experience across banks and e-wallets. For merchants, it eliminates the need for multiple payment standees or manual QR switching, creating a faster and more professional checkout environment.
Technically speaking, the flow is straightforward: scan, authorise, settle. Because PayNow operates over the banking rails, there are no card interchange fees, and reconciliation is simpler because transfers post directly to the business bank account. For merchants that do significant volume in small-ticket sales, these features quickly reduce operating cost and administrative burden.
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Key merchant benefits
PayNow delivers tangible operational and financial advantages for merchants. The main benefits are:
Instant liquidity: Funds are credited within seconds, improving working capital and removing settlement delays. Accompanied by lower transaction costs, PayNow allows for complete control and transparency in operations.
Lower transaction cost: A MAS-written parliamentary reply in May 2024 confirms that merchant transaction fees from consumer PayNow payments are currently waived by major retail banks, which significantly lowers the cost for business-receiving accounts. Â
Flexibility for merchants: According to a MAS whitepaper, PayNow adoption in Singapore has enabled merchants to select their preferred acquirer and receive a single data stream for reconciliation, reducing complexity in multi-rail payment setups.
Collectively, these benefits shorten payment cycles, strengthen cash management, and create a faster, smoother checkout experience.
How Debia integrates PayNow into a unified merchant workflow
Debia brings Dynamic PayNow into a single, consolidated payments platform so merchants can manage QR, card, and e-commerce receipts in one view. All transactions route into Debia’s dashboard, where outlets, payment types, and settlement windows are visible side by side.
Operationally, the benefits of using Debia for PayNow include automated statement exports, per-outlet reporting, and filters to reconcile by date range or payment method.
Debia’s pricing model is transparent and usage-based, which aligns well with PayNow’s low-cost nature. Because Debia is MAS-regulated and PCI-aware, merchants also get the compliance assurances needed when handling high volumes of consumer payments.
To explore setup options, see Debia Payments.
Data and trends merchants should watch
Several developments are expanding PayNow’s role beyond domestic retail payments:
Consumer adoption at scale:
MAS data shows over 5 million individual PayNow users in Singapore, with more than 85% of adults using instant payment services weekly.
Corporate usage growth:
PayNow Corporate has gained momentum for supplier and payroll disbursements, increasing transaction value and business relevance.
Cross-border integration:
Bilateral links between PayNow and regional instant payment systems — including PromptPay (Thailand) and DuitNow (Malaysia) — allow foreign tourists and businesses to transact seamlessly in Singapore.
For merchants serving international customers, these cross-border links make PayNow an increasingly valuable rail. It not only supports domestic instant transfers but is evolving into a bridge for regional payments, offering predictable settlement and low operational costs through platforms like Debia.
How Do I Accept PayNow?
To onboard PayNow using Debia, follow these steps:
Register your business UEN and link it to a supported bank account or payment provider.
Integrate PayNow into your POS or website via Debia’s API to consolidate reporting.
Run test transactions to confirm settlement timing and reporting accuracy.
These steps are intentionally simple because speed of execution is a core PayNow advantage. Debia’s onboarding team can assist with UEN registration and API connections so merchants can be live within a few business days.
Debia integrates PayNow into its unified payment platform, which allows merchants to manage every payment rail in one dashboard. From Mastercard to Visa, UnionPay, and Samsung Pay, all transactions are visible in real time within Debia’s merchant portal for easy reconciliation, while security is maintained with dynamic QR payments.
Conclusion
PayNow is not merely another QR option. It is a national real-time payment rail that offers merchants immediate liquidity, low per-transaction cost, and a simpler reconciliation process. For Singapore businesses that want to reduce payment friction and improve cash flow, PayNow is the logical first step in a wider digital payments strategy.
Start accepting PayNow along Visa, Mastercard, and other payment rails at Debia Payments, or email hello@debia.co for bespoke support.