Singapore: India and Singapore have completed technical preparations to link their fast payment systems UPI and PayNow to enable fund transfers between the two countries instantaneously and at low cost.
“Singapore wants to connect its PayNow with UPI and that project will finish sometime in the next few months when that happens anybody sitting in Singapore will be able to send money to their family members in India,” India’s High Commissioner in Singapore P Kumaran said.
“For us, the practical implications sitting here is that any worker who wants to send small amounts can do so at a fraction of the money they are being charged by the standard money transfer companies. So it is going to be a big benefit to those who instead of sending money in one go can do so in small pieces and it will still cost less,” the Indian envoy to Singapore said.
The remarks of India’s ambassador to the city-state came ahead of the Asean and related summits, which kicked off in the Cambodian capital of Phnom Penh and is witnessing the participation of leaders of the 10-member regional bloc.
PayNow is similar to India’s homegrown card payment network RuPay. Apart from this, PayNow has linkages with other countries of Asean, which makes it easier for people to buy and sell within the region.
Similarly, Malaysia and Thailand have made a connection with their fast payment systems.
“Eventually we will also have added connectivity and it will reduce transaction costs of remittances,” The Indian envoy said.
Such payment connectivity collaboration in the Asean would benefit migrant workers, tourists, small businesses, and enterprises.