Singapore Pools’ PayNow Fee Draws Paraty Attention From Government and Public
Singapore’s PayNow system is meant to offer a convenient, cost-free way for consumers to pay merchants using bank transfers. The key rule, however, is clear: merchants are not allowed to impose surcharges on customers for PayNow payments. Yet the issue of a 10-cent fee charged by Singapore Pools for each PayNow transaction has sparked parliamentary and regulatory scrutiny, raising questions about how such charges align with ABS rules and public expectations.
What the ABS Rules Say
At the heart of the matter is the Association of Banks in Singapore (ABS), which operates the PayNow scheme. In theory, ABS rules prohibit merchants from imposing a surcharge on customers for PayNow-based payments. Deputy Prime Minister Gan Kim Yong, who also serves as Minister for Trade and Industry and chairs the Monetary Authority of Singapore, confirmed that ABS is actively engaging with Singapore Pools to address this practice.
Gan noted that while merchants can be charged more for using certain services—such as bank notifications for funds received—these are generally covered by transaction fees that banks waive for end-consumers. In other words, while banks may charge processing fees to merchants for certain services, customers should not bear surcharges simply for selecting PayNow as a payment method.
There are more than 300,000 businesses registered to use PayNow in Singapore, underscoring the broad reach of the scheme. The juxtaposition of broad usage with a persistent 10-cent fee by a major operator raises policy questions about how the system should be managed and what constitutes fair practice for consumers and operators alike.
Singapore Pools Responds to the Criticism
Singapore Pools, a unique entity in Singapore’s gambling landscape as the only legalised operator for sports, lotteries, and horse racing, is a subsidiary of the Tote Board under the Finance Ministry. It has stated that the 10-cent fee applies to all PayNow transactions — including bet placements and prize claims — and that this policy predates ABS’s 2024 rule enforcement. The operator’s spokesperson emphasized that the 10-cent surcharge is not new and that all applicable fees are disclosed upfront on its website and app.
In a concise reply, Singapore Pools said it has been collaborating with partner banks to review the arrangement in line with ABS regulations, while prioritising transaction security and reliability. The firm also pointed to existing contracts with partner banks that allow recovery of processing costs for payment transactions.
Parliamentary Questions and Public Interest
The current scrutiny follows a question raised by Mr. Alex Yeo (Potong Pasir SMC) in Parliament about exemptions from PayNow surcharge rules for certain entities. DPM Gan’s written response confirmed the ABS framework and Singapore Pools’ involvement in addressing the issue, but did not provide a detailed timeline for when changes might be implemented or whether refunds are contemplated.
The broader context includes a previous inquiry in Parliament regarding entry levies at casinos. In 2024, a lapse allowed higher levies to be collected for a short period, prompting discussions about regulatory gaps and enforcement. The juxtaposition of these issues illustrates how consumer-facing charges in tightly regulated sectors can become political and regulatory flashpoints.
What This Means for Consumers and Businesses
For consumers, the central takeaway is straightforward: PayNow surcharges are generally prohibited. If you encounter a fee levied solely for PayNow transactions, it could raise questions about compliance and whether the merchant is aligned with ABS guidelines.
For businesses and operators, the guidance is equally clear: transparency is essential, and any processing costs should be disclosed to customers upfront while staying within the framework set by ABS. Banks and payment providers may offer waivers for consumer-facing costs, but surcharges on the PayNow method itself should not become a routine practice.
Looking Ahead
As ABS engages with Singapore Pools to address the 10-cent PayNow fee, observers will be watching for clear direction on permissible costs, how disclosures are implemented, and whether refunds or adjustments will be considered should a policy change be warranted. The outcome will likely influence other merchants and operators who utilise PayNow in daily transactions, given that more than 300,000 businesses rely on the service.
