Date: For Parliament Sitting on 7 May 2024 

Name and Constituency of Member of Parliament

Ms Hazel Poa, NCMP

Question:

To ask the Prime Minister (a) whether the charges levied by banks or payment service providers on merchants for using PayNow to receive payments from end-consumers are being monitored and/or regulated; (b) if so, what steps are taken to regulate these charges to ensure that merchants are not to pass on such costs to end-consumers; and (c) whether the Government will consider legislation to prevent merchants from charging end-consumers when they make payments using PayNow, and if not, why not.

Answer by Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of MAS:

1. PayNow was launched in 2017 to provide a safe, simple and speedy way for individuals and businesses to make payment transactions. Today, more than 300,000 businesses accept PayNow payments. 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. 

2. Merchants are not allowed to impose a surcharge on customers who wish to make payments via PayNow. The Association of Banks in Singapore (ABS), which owns the PayNow scheme, has in place clear rules to prohibit such practice. 

3. Should consumers encounter any PayNow surcharge, they ought to provide feedback to their own PayNow Financial Institution (FI) or ABS. If a merchant is found to have imposed a surcharge in violation of the service agreement, the PayNow FI will take action against the merchant. This may include terminating its payment services to the errant merchant.

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