SINGAPORE: Public agencies, including the Central Provident Fund (CPF), will start using PayNow, which was launched in 2017 to allow for easy and immediate fund transfers, said Minister-in-charge of Smart Nation Initiative Vivian Balakrishnan in Parliament on Thursday (Mar 1).
During the Prime Minister's Office session of the Committee of Supply debate, Dr Balakrishnan touched on the Government's efforts to reduce cash use, saying it is "not going cashless for its own sake" and "certainly not for tax collection".
He highlighted the CPF as an example, saying the agency will allow eligible CPF members over 55 years old to receive their lump sum withdrawal using PayNow in March this year. This, he added, will enable the funds to be transferred within the same day rather than the current turnaround time of five working days.
CPF said the service will be available from Mar 26.
In January, the Ministry of Education (MOE) announced it will pilot the use of PayNow this year - in April and September - to disburse Edusave Award funds to Institute of Technical Education (ITE) and polytechnic students.
PayNow Corporate will also be launched this year, and businesses will be able to link their bank accounts to their unique entity numbers (UENs) and use the service to pay other businesses. Consumers can also use it to pay merchants for their purchases, Dr Balakrishnan said.