NEW ELECTONIC DEFFERED PAYMENT METHODS
ABS, together with the seven Domestic Systemically Important Banks (D-SIBs ), will launch two new e-payment methods, EDP and EDP , in mid-2025.
The D-SIBs are Citibank, DBS Bank, HSBC, Maybank, OCBC Singapore, Standard Chartered Bank and UOB.
EDP and EDP are meant to , “address the usage scenarios of post-dated bills and purchases requiring greater clarity of settlement respectively”, said MAS and ABS.
They added that when money are taken out of the payor account, the main distinction between EDP and EDP is found. For EDP, resources are deducted upon issuance by the recipient, while for EDP , resources are deducted immediately upon release.
Both will benefit from Pay Now, which will be accessible via online banking systems, and enable payers to track payees when making payments.
Both forms will also be appropriate for six months from the powerful date, equivalent to cheques and pharmacist’s orders, which are cheques issued by banks themselves.
The two e-payment methods will provide superior features, including online notifications to both payer and payee at the different transaction stages- issuance, presentment, expiration and cancellation.
DISTINCTING FROM CHEQUE USAGE
In November 2022, MAS released a discussion report that suggested a plan to eliminate the use of checks in Singapore.
In Singapore, there is a decrease in the use of checks by both businesses and individuals, resulting in e-payment options.
According to MAS and ABS, annual cheque transaction level has decreased by about 80 % from 61 million in 2016 to less than 14 million in 2023.
The share of Singdollar-denominated cheque transaction volume as a proportion of payments using Fast and Secure Transfers ( “FAST” ), Inter-bank GIRO , and cheques has decreased from 32 per cent , in 2016 to less than 4 per cent in , 2023.
Additionally, cashier’s orders and USD paychecks will still be available, according to MAS and ABS, as well as for both business and retail customers.
Big retail businesses in Singapore may also remain to exempt seniors from paying request service fees.
By Jan. 17, 2025, Interested parties are asked to provide their opinions on a common consultation document outlining the transition plan from checks to e-payments.