Singapore Pools' 10-cent PayNow fee under scrutiny; surcharges by merchants prohibited, says DPM Gan

PayNow merchants are not allowed to impose surcharges on customers for making such transactions.

- David Sun Crime Correspondent

But for years, Singapore Pools has been charging a 10-cent fee for each PayNow transaction.

Deputy Prime Minister Gan Kim Yong, who is also the Minister for Trade and Industry and chairman of the Monetary Authority of Singapore, said the Association of Banks in Singapore (ABS), which owns the PayNow scheme, is engaging Singapore Pools to address this practice.

DPM Gan revealed this in a written parliamentary reply on Oct 14 in response to a question by Mr Alex Yeo (Potong Pasir).

Mr Yeo had asked whether the Government was aware of any entities, including Singapore Pools, which are exempt from the rules prohibiting merchants from imposing surcharges for PayNow transactions.

DPM Gan said ABS has rules that prohibit merchants from imposing a surcharge on customers who wish to make payments via PayNow.

He added that transaction fees for payments received by merchants from end-consumers are waived by the major retail banks, while a minimal fee is charged if the merchant uses additional services like notifications for funds received.