Sumary of PayNow and India’s UPI link up for instant fund transfers:
- People and businesses will be able to make instant, low-cost fund transfers between Singapore and India when the countries’ two real-time payment systems are linked by next July.
- The Monetary Authority of Singapore (MAS) and the Reserve Bank of India yesterday announced plans to link Singapore’s PayNow system – which lets individuals transfer money using just a mobile phone number – with India’s Unified Payments Interface (UPI) real-time payment system.
- MAS chief fintech officer Sopnendu Mohanty said: “By reducing the cost and inefficiencies of remittances between Singapore and India, the PayNow-UPI linkage will directly benefit individuals and businesses in Singapore and India that greatly rely on this mode of payment.
- ” The arrangement will allow people to transfer funds from India to Singapore using mobile phone numbers, and from Singapore to India through UPI virtual payment addresses (VPAs).
- Non-bank financial institutions that are connected directly to PayNow and Fast And Secure Transfers (Fast) rely on VPAs to send and receive real-time payments from other users of e-wallets or mobile banking applications of PayNow and Fast participants.
- The experience of making a PayNow transfer to a UPI virtual payment address will be similar to that of a domestic transfer to a PayNow VPA.
- MAS said the connectivity between PayNow and UPI is a major milestone in the development of next-generation infrastructure for cross-border payments between Singapore and India.