Reviewing Policy Framework of PayNow Surcharge Rules to Ensure Consistency of Consumer Protection Measures

3 Mr Alex Yeo asked the Prime Minister and Minister for Finance (a) whether the Government is aware of any entities, including Singapore Pools, which are exempt or specific circumstances that may exempt an entity from the rules prohibiting merchants from imposing surcharges for PayNow transactions; and (b) if so, whether the Ministry would consider reviewing the policy framework for exemptions to ensure consistency with consumer protection measures applied to private businesses.

Mr Gan Kim Yong (for the Prime Minister): Today, over 300,000 businesses in Singapore are registered to use PayNow as a safe and low-cost way to make and receive payments digitally. Transaction fees for payments received by merchants from end-consumers are currently waived by the major retail banks, while a minimal fee is charged if the merchant uses additional services like notifications for funds received.

The Association of Banks in Singapore (ABS), which owns the PayNow scheme, has rules that prohibit merchants from imposing a surcharge on customers who wish to make payments via PayNow.

ABS is aware that Singapore Pools currently imposes a surcharge on PayNow transactions. ABS, through the relevant PayNow banks which have contractual relationship with Singapore Pools, has been engaging Singapore Pools to address this practice.