Singapore Pools absorbs transaction fees for electronic payments

SINGAPORE: Singapore Pools will absorb transaction fees for electronic payment options, such as NETS and PayNow, from Tuesday (Nov 11).

The decision follows its reviews with partner banks, the Association of Banks in Singapore (ABS) and NETS on transaction fees, said Singapore Pools in a press release on Tuesday.

"They included a review of existing contracts with our partner banks and NETS that allow the recovery of processing costs charged by our partners for services related to PayNow and NETS," said Singapore Pools.

"As a result, Singapore Pools will absorb the transaction fees for PayNow as well as other e-payment options, including FAST and NETS."

Singapore Pools was previously charging customers 10 cents for every PayNow transaction.

This drew scrutiny as ABS, which owns the PayNow scheme, has rules that prohibit merchants from imposing a surcharge on customers who wish to make payments via the service.

In a written reply to a parliamentary question about surcharges for PayNow transactions, Deputy Prime Minister and chairman of the Monetary Authority of Singapore Gan Kim Yong said ABS was aware of the surcharge that Singapore Pools imposed on such transactions.

Mr Gan said then that ABS was engaging Singapore Pools to address the practice.

ABS director Ong-Ang Ai Boon said it welcomed Singapore Pools' decision to absorb the transaction fee for customers using PayNow. 

"PayNow is intended to be provided free to consumers choosing the speed and convenience offered by PayNow when making payments," she said in a statement. 

Singapore Pools said on Tuesday that it was also working with its partners to absorb eNETS transaction fees.

“As significant system and operational changes are required, eNETS payments will be temporarily suspended until further notice.”