Hey, everyone!

Working in our industry, it’s sometimes easy to become so focused on big numbers and data we risk missing the true impact of fintech on people’s everyday lives. This point came to mind while listening to Singapore’s recent Budget 2023 announcements.

With inflation putting the squeeze on Singaporean families, particularly for food and energy costs, the Singapore government presented various support measures, including a one-off Cost-of-Living (COL) Special Payment of up to $500 for eligible adults. Back in the pre-digital days, getting hold of payouts like this might involve a lot of uncertainty and stress, waiting for a cheque to be disbursed before queuing at the bank to deposit it, then waiting for the cheque to clear. Today, Singaporeans who register their national ID number with PayNow can enjoy the convenience of getting payouts directly to their bank accounts so that they can pay bills and expenses expeditiously.

In Thailand, too, the efforts made to develop a national electronic payments infrastructure and its impact on people’s lives. PromptPay – the government-initiated money transfer platform – is the official channel for individuals to receive tax rebates from the Thai Revenue Department and other government-related payments. At the height of the pandemic, for example, PromptPay helped employees unable to work due to government-mandated orders to receive invaluable financial support when families needed money urgently.

PayNow and PromptPay – secure peer-to-peer fund transfer services that allow you to receive payment almost instantly – are fantastic examples of the power of real-time payments (RTP). We will cover the topic in detail in our forthcoming e-book to mark 2C2P’s 20th anniversary, “Cracking the Payments Code”, discussing how RTP brings many real-life benefits to consumers and businesses beyond speed. Here are some of the key advantages:

Benefits to Consumers:

• Convenience: consumers can transfer funds instantly and conveniently without waiting days for the funds to clear.
• Accessibility: consumers can access their money anytime.
• Security: RTP comes with security features, such as instant notifications when someone makes a payment, to help prevent fraud or unauthorised transactions.

Benefits to Businesses:

• Improved cash flow: businesses get faster access to funds, improving their cash flow and allowing them to invest or make purchases sooner.
• Better customer experience: businesses can deliver a better customer experience by providing instant payment confirmation and reducing the time required for payment processing.
• Increased efficiency: RTP can reduce administrative tasks, such as reconciliation and payment tracking, as payments are processed instantly and automatically recorded in accounting systems.
• Competitive advantage: Offering RTP can give businesses a competitive advantage by improving customer satisfaction and attracting new customers who value fast and convenient payment options.

Lately, following the linkage between PayNow and PromptPay, more governments have announced plans to connect their real-time payment systems, most recently between PayNow and India’s UPI. These moves excite me about how RTP can improve the transaction needs of consumers and businesses not just in the user’s home country but across borders too.

Anything that removes friction, stress and uncertainty in today’s world is worth celebrating – I’m sure you’ll agree!

Warm regards,

Aung Kyaw Moe

Founder & CEO, 2C2P

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