Singapore’s OCBC Bank Customers To Experience First Mobile Payment System

 Office workers walk to the train station during evening rush hour in the financial district of Singapore
The financial district of Singapore is busy as construction goes on in the background in Singapore's very expensive real estate. (Photo: REUTERS/Edgar Su)

The OCBC Bank has struck a deal with fintech expert Rapyd in a bid to develop Singapore's first instant mobile payments system to cater to online shoppers who want to make purchases or payments directly from their accounts.

In Rapyd's press release about the collaboration, it was revealed that OCBC Bank clients will be allowed to make digital payments and transactions through the bank's Pay Anyone app that uses the fintech provider's Checkout payments solutions platform.

In Singapore, most e-commerce sellers provide complex payment processes that some online shoppers find frustrating. Buyers are required to leave the retailer's platform for bank-related transactions before completing the payment or purchase in the retailer's app.

Through the Rapyd-OCBC partnership, online shoppers who have accounts with OCBC can simply opt for the "Pay with OCBC Pay Anyone" option. This option will be available within a certain retailer's app and will allow for faster and less complex payment processing.

Furthermore, the deal will work well for online retailers. Sellers can receive immediate payments from Singaporean buyers who choose the OCBC Pay Anyone payment option. The system will reduce the usual three-day wait that merchants have to endure before receiving card-based payments.

Singapore has a national peer-to-peer transfer service called PayNow but the difference with the Rapyd Checkout solutions is the latter offers faster payment reception for merchants in the e-commerce sector.

"This is a key milestone in our journey to drive digital payments adoption across Singapore," head of e-business, business transformation and fintech and innovation group for OCBC Bank, Pranav Seth, said of the new Rapyd deal.

Vice President of Asia Pacific at Rapyd, Joey Yarbrough, said both sellers and shoppers in Singapore can rest assured the Checkout solutions the company offers are safe for everyone. The shopping spree is also limitless since shoppers will have access to the global e-commerce market.

Earlier this month, it was revealed that Singapore's financial technology investments increased over the last six years. The latest data from Fintech Global indicated that investments in the country's fintech sector were only at $20.8 million in 2014. By 2017, figures climbed to $229.10 million and last year, the city-state hit a record high of $365 million.

Industry analysts attributed Singapore's fintech developments to the city-state's advanced infrastructure and ultra-high-speed optic networks that connect businesses and consumers. Worldwide, Singapore bagged the top spot in fastest broadband connections this year.

Industry experts recommended that the government should start developing specific regulations that will govern local fintech practices. This move is supposed to help ensure that banking transactions will remain safe and secure for merchants and shoppers.

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