In this scenario, NETS assumes the role of the primary acquirer for merchants, taking full responsibility for the merchant-acquirer relationship. This includes overseeing essential functions such as onboarding, settlement, and reconciliation, thereby significantly simplifying the process for merchants.
SGQR+ to Pave the Way for Cross-Border Connectivity
Globally, the potential of interoperable QR payments has been recognised, with countries implementing strategies to develop well-connected and inclusive payment ecosystems. In Southeast Asia, notable systems include Indonesia’s Quick Response Code Indonesian Standard (QRIS), Malaysia’s DuitNow QR, QR Ph in the Philippines, and Thai QR established by the Bank of Thailand. These systems not only facilitate seamless payments for inbound customers but also increase inbound transactions through cross-border linkages.
These countries have established cross-border linkages amongst themselves, achieving varying degrees of interoperability, with some having well-connected cross-border QR payment systems in place. With its established cross-border connectivity, SGQR+ aims to increase inbound transactions through these linkages, while ensuring a seamless payments experience for inbound customers.
Under the SGQR+ POC, payment schemes from mainland China (AliPay+ and WeChat), South Korea (GLN), Thailand (ITMX), Malaysia (PayNet), as well as global schemes via XNAP card and app store payment options, will be accommodated. A larger range of merchant acquirers, local issuers, and participating international schemes have shown interest, indicating a move towards establishing seamless QR payments across numerous countries.
Bolstering Financial Inclusion to Unlock the Potential of MSMEs
SGQR+ will enable acquirers to gain a more comprehensive view of a merchant’s cash flows, in contrast to closed-loop payment ecosystems like SGQR. This broader perspective facilitates alternative credit scoring methods, potentially increasing lending to previously unserved or underserved segments.
Source: Interoperable QR Payments in Singapore, MAS
By seamlessly connecting payment providers and merchants, SGQR+ aims to tackle existing merchant challenges and open up new avenues for digital inclusion. Emphasising interoperability, scheme participants are encouraged to develop service offerings focused on both merchants and consumers. This is facilitated by leveraging the enhanced propositions made possible through scheme incentives and favourable unit economics.
For many of Singapore’s neighbouring countries, MSMEs participating in interoperable QR system payment rails will aid in improving financial inclusion for the unbanked and underbanked populations, thereby driving economic development in these regions.
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- Source: https://fintechnews.sg/83555/payments/5-things-to-know-about-sgqr-singapores-unified-payments-qr/
