Fintechs and any other authorized organization in Singapore can connect to that country’s real time payment network, FAST. Finextra reported that those who meet the criteria defined in the Payment Services Act published in 2019 can have access to Fast and the PayNow overlay service. Here’s the overview from the article:
Available from February 2021. NFIs that are licensed as major payment institutions under the Payment Services Act will be allowed to connect directly to Fast and Secure Transfers (Fast) and the PayNow overlay central addressing service.
The shift to direct access will enable users of NFI e-wallets to make real-time funds transfers between bank accounts and e-wallets as well as across different e-wallets. Currently, most e-wallets require the use of debit or credit cards to top-up funds, and funds transfers between e-wallets are not possible.
NFIs will be able to connect directly through a new Application Programming Interface (API) payment gateway developed by the Direct Fast Working Group (DFWG).
The idea behind opening up access to Non-Financial Institutions (NFIs) is to support more innovative solutions and competition. This includes the ability for end users with multiple mobile wallets will be able to move funds between these wallets. Singaporeans have options for several domestic mobile wallet solution and also can use the Chinese mega-wallets AliPay and WeChat Pay:
Ravi Menon, managing director of MAS says: “Direct access by NFIs to FAST and PayNow closes the last-mile gap in Singapore’s e-payments journey. Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts. Our vision to enable complete real-time payments interoperability will now become a reality.”
Overview by Sarah Grotta, Director, Merchant Services at Mercator Advisory Group