7 Reasons Every Online Store Needs PayNow in Singapore — Best PayNow Payment Gateway in Singapore

Here's why PayNow is a gamechanger for your online business.

If you're like most e-commerce business owners in Singapore, your task list is neverending. From marketing to operations, it's no surprise if payment systems are the last thing on your mind!

And yet, a good PayNow payment gateway solves many business problems. From lower transaction costs to fully automating the payment process, a PayNow payment gateway can save you time and money. Plus, setting up a PayNow payment gateway in Singapore takes only 20 minutes!

But first, what is PayNow in Singapore and why is it essential for your small business? 

What is PayNow?

The PayNow service in Singapore is a secure funds transfer service - meaning you can send and receive funds securely in Singapore dollars (SGD) instantly.  

Customers of participating banks can transfer funds from one PayNow participating bank to another by linking their mobile number to the service. It's free and available 24/7 to all Singaporean consumers and Singapore-registered businesses.

Before PayNow launched in 2017, you'd need the recipient's bank account number or e-wallet provider to transfer funds, a tedious process. Using PayNow QR codes, you can transfer money between 21 participating banks in Singapore, including popular digital wallets like GrabPay and SingTel Dash and banking apps with your customer's mobile number.

How does PayNow in Singapore work? 

PayNow operates using a virtual payment address (VPA). Think of it as a unique ID that links to the user's bank account, enabling peer-to-peer transactions among different banks in Singapore. The service simplifies sending and receiving funds, making it easier for individuals and businesses to pay and get paid.

You don't need a debit or credit card to transfer funds and receive money via PayNow in Singapore. You only need to link your mobile number to PayNow and a bank account from a participating bank like DBS Singapore or OCBC.  Find the complete list of participating banks and major payment institutions here. 

PayNow is for more than just individuals too. Singapore-registered businesses can enjoy instant transfers 24/7 by linking their Unique Entity Number (UEN) to their Singapore bank account and signing up for PayNow Corporate through their bank.

7 reasons why your e-commerce store needs to accept secure payments via the PayNow service

Why set up PayNow in Singapore? In short:

• Free to set up for businesses registered in Singapore
• Convenient to use
• Minimal transaction fees
• Enables payments to Malaysia, Thailand and India
• Safe and secure

Read on for more information, and an easy way to offer this excellent payment method with HitPay's PayNow payment gateway.

1) More people are using PayNow in Singapore

Over 80% of Singapore residents and businesses (a whopping 5.5 million users in 2022) are on PayNow and PayNow Corporate. 

PayNow's rapid adoption is helped by the Singapore government’s introduction of the Singapore Quick Response Code (SGQR). This initiative allows merchants to accept various e-payment methods from a single QR code, including PayNow.

In short, contactless payment and Internet banking options are becoming more popular in Singapore, and offering PayNow is essential for any online store or small business.

2) PayNow transactions are 70% cheaper than credit cards

Credit cards have long been the standard option for contactless payments.

However, credit card transactions come with high fees for merchants, including:

• One-time setup fees
• Annual or monthly fees
• Terminal rental fee for in-person purchases
• Service fees for installation or maintenance of terminal
• QR code generation and use fees
• Statement fees
• Cancellation fees

Along with high transaction fees of 3.4% + $0.50, credit card transactions can be terribly inefficient for small businesses.

By setting up a PayNow payment gateway, you enjoy 70% cheaper transaction fees than a credit card, with the same automation and convenience of mobile banking. 

Unlike major credit card companies, HitPay has no setup, monthly, or annual fees.

A fully automated PayNow payment gateway in Singapore will cost just 0.65% + S$0.30 per transaction. Smaller businesses also benefit, with a flat rate of just 0.9% per transaction for transactions less than $100.

PayNow is a service that provides much-needed flexibility with your funds — just what you need while your business grows.

3) It's quicker to receive funds via PayNow in Singapore compared to credit card payments

Card payments are convenient, but they also have long payout periods. For most credit card sales, you'll only receive funds in your account a full seven days later.

If you're running a lean business, you'll know this one-week delay can be stressful and inefficient.

PayNow transfers are much faster, giving you convenient automation with a super quick next-day payout.

Also, PayNow transactions can be fully automated from beginning to end, so you don't have to confirm payments, send confirmations, or initiate orders manually.

In other words, you can enjoy all the convenience of credit card transfers with significantly faster cash flows.

4) Better customer experience

It might seem small, but your payment gateway can make or break your online business. According to research by PayPal, a negative checkout experience and lack of preferred payment options rank highly among the reasons customers abandon their cart.

Ultimately, you want to make the payment process hassle-free. PayNow’s instant payment system reduces the need for manual input of account numbers and Singapore NRIC/FIN, streamlining the payment process for businesses and customers. 

By allowing transactions with mobile numbers or virtual payment addresses (VPA), PayNow simplifies the payment process and minimizes errors for both merchants and consumers. You’ll speed up checkout and ease payment tracking, making shopping even more convenient and efficient for consumers.

A smooth purchase experience will improve a customer's overall impression of your brand — leading to better reviews and more sales!

5) Easy integration on e-commerce platforms like WooCommerce and Shopify

Integrate PayNow efficiently on a wide range of e-commerce platforms:

• Shopify
• Xero
• WooCommerce
• EasyStore
• Shopcada
• Magento
• Prestashop
• OpenCart
• Wix
  

HitPay provides e-commerce plugins that can be set up within minutes, with no coding required.

With just one plugin, you can receive payments from PayNow and other popular payment methods in Singapore including credit cards, e-wallets and buy-now-pay-later solutions like Atome.

6) Reach customers and pay suppliers across ASEAN and India

Singapore’s PayNow isn’t only great for local payments in Singapore. It enjoys real-time payment gateway linkages with national payment gateways in Thailand, India and Malaysia, making it a fantastic payment method for: 

• Selling to customers in ASEAN and India
• Paying suppliers and vendors based in Thailand, India and Malaysia in their local currency 
• Saving time handling CPF deposits and corporate tax payments 

By using PayNow, you’ll enjoy instant transfers with these countries. This convenience flows both ways - your recipient will receive any funds you send in their local currency, and you’ll receive money credited in SGD to your PayNow linked bank account in Singapore.

PayNow works with the following national payment gateways: 

• PayNow Singapore and Thailand PromptPay - launched April 2021 
• PayNow and India’s United Payments Interface (UPI) - launched February 2023
•  PayNow and Malaysia’s DuitNow - launched November 2023

So if you plan to make online sales or want to pay vendors outside of Singapore, PayNow’s your best bet.

7) Enjoy secure fund transfers with PayNow Singapore

PayNow Singapore and PayNow Corporate adopt the same high security standards adopted by the Singapore banking industry for funds transfer including FAST (Fast And Secure Transfers) and GIRO. A bank’s security measures like encryption and transaction monitoring protect your money. 

Also, fund transfers through PayNow in Singapore keep sensitive bank account information private, unlike traditional banking methods where you’ll need to input account numbers manually. 

Read more: How to keep your HitPay account safe

Set up a PayNow Payment Gateway in Singapore

Ready to set up PayNow to make secure payments? It only takes 20 minutes, and setup is free!

Set up a PayNow payment gateway on your store with HitPay. Register for PayNow Corporate with your bank for free if you haven't already. 

If you have any questions, contact our team to learn more.

About HitPay
HitPay is a one-stop commerce platform that aims to empower SMEs with no code, full-stack payment gateway solutions. Over 7,000 merchants have grown with HitPay's products, helping them receive in-person and online contactless payments with ease.

Join our growing merchant community today!