India’s UPI and Singapore’s PayNow Linked: What It Means and Who Benefits
By Sanjay Kumar
India and Singapore on Tuesday (February 21) linked their instant Payment systems, Unified Payments Interface (UPI) and PayNow, easing the process of fund transfer between individuals in the two Asian countries.
As a result, UPI and PayNow users can send and receive money in real-time between financial institutions that participate in the two countries, by using their UPI identity, virtual payment address, or mobile phone number.
| Unified Payments Interface | PayNow |
| Product type – Instant real-time inter-bank payment system | Product type – Instant real-time inter-bank payment system |
| Owner – National Payments Corporation of India | Owner – Association of Banks in Singapore |
| Produced by – National Payments Corporation of India | Produced by – Association of Banks in Singapore |
| Country – India | Country – Singapore |
| Markets – India, Bhutan, Nepal, Malaysia, Singapore, United Arab Emirates, France, Oman, European Union – International by cross border payment agreements | Markets – Singapore – International by cross border payment agreements |
Several Indian banks, such as the State Bank of India, Indian Overseas Bank, Indian Bank, and ICICI Bank, will allow customers to send and receive money, while Axis Bank and DBS India users can only receive money in their accounts. More banks will be included over time. This move is expected to enhance cross-border retail payments and remittances between the two countries, which already amount to over $1 billion each year.
According to a statement released by the Monetary Authority of Singapore (MAS), “the linkage provides customers with a safe, simple and cost-effective way to make cross-border fund transfers.” Initially, Indian users will be able to remit up to INR 60,000 (approximately SGD 1,000) per day.
PM Modi, in a video conference, stated that “from today onwards, the people of Singapore and India will be able to transfer money across the border using their mobile phones in just the same way they have been doing in their respective countries.” He also emphasized that this facility would provide a low-cost and real-time option for cross-border remittances between the two countries, especially benefiting migrant workers, professionals, students, and their families.
Furthermore, PM Modi mentioned that “UPI is the most preferred payment mechanism in India. That is why today, many experts are estimating that very soon India’s digital wallet transactions are going to overtake cash transactions.” The concept of linking PayNow and UPI was first proposed in 2018 when PM Modi visited Singapore.
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