Singapore is now known as one of the financial hubs in Asia Pacific, with a modern infrastructure, highly educated population and a GDP per capita roughly equal to the U.S.A. The largest bank in Singapore is DBS, with assets in the range of $350 billion, so somewhere in-between Capital One and PNC bank as a form of comparison.
This announcement appears in CrowdFund Insider, briefly describing a new B2B e-payments solution targeted at what seems to be mostly SMEs in the food and beverage sector. So despite the ultra-modern appearance and reputation of the island city state, there are still lots of paper and cash based payments being done.
However, there is a plan to go cashless, and once Singapore creates a goal, the achievement of that goal is pretty much guaranteed.
‘Banking group DBS announced on Monday it has launched a new solution to transform cash and paper-based B2B payments and collections landscape for businesses in Singapore. The bank reported its QR-code based solution is powered by DBS RAPID and DBS MAX and addresses Singapore’s aim of enhancing productivity by eliminating cheques by 2025 and going cashless.’
Although there is not a detailed description in this release, the solution uses QR codes and is underpinned by the DBS RAPID solution, an API driven capability, while MAX is a mobile solution.
As described, instant payments and back end reconciliation are part of the packages, which should be a welcome event given the positive cash flow implications. The piece claims that 90% of these B2B transactions are currently settle via paper or cash. Development was apparently accomplished (or aided) via a series of digital sessions in collaboration with F&B SMEs.
‘While sharing more details about the solution, Joyce Tee, Group Head of SME Banking, DBS Bank, stated:..“Many SMEs we speak to want to realise productivity gains by becoming more digital but they don’t have the expertise or infrastructure to do so. By understanding their pain points and then laying the foundation for enhanced payments capabilities one sector at a time, DBS aims to lead the way in digitalising and streamlining the payments landscape in Singapore. Our aim is to enable our SMEs’ time-strapped workforce to be able to spend more time serving their customers and exploring new business opportunities.” ‘
More innovation coming out of the Asia Pacific region using non-card solutions, in this case particularly Southeast Asia.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
