Overview: PayNow surcharges come under government scrutiny
Singapore is tightening rules against merchant-imposed charges for PayNow payments. While the Association of Banks in Singapore (ABS) prohibits such surcharges, a 10-cent fee charged by Singapore Pools for each PayNow transaction has drawn attention. Deputy Prime Minister Gan Kim Yong, who serves as Minister for Trade and Industry and chairs the Monetary Authority of Singapore (MAS), clarified the government’s stance in a written parliamentary reply on October 14.
What the government says about PayNow surcharges
In his reply to Mr. Alex Yeo (Potong Pasir SMC), DPM Gan stated that ABS rules forbid merchants from imposing PayNow surcharges on end-customers. He noted that major retail banks typically waive transaction fees paid by merchants for PayNow payments received from consumers, with only minimal charges arising from optional services such as payment notifications. The key takeaway is that the regulatory framework intends to protect consumers from extra costs tied to PayNow transactions.
Why the 10-cent fee persists at Singapore Pools
Singapore Pools, the sole legal operator of sports, lotteries and horse racing in Singapore and a Tote Board subsidiary, maintains a 10-cent fee per PayNow transaction. The company argues the fee predates the ABS prohibition rules and claims it has disclosed all charges to customers upfront via its website and app. A Singapore Pools spokesperson said the operator has been reviewing the arrangement with its partner banks to ensure compliance with ABS regulations while safeguarding transaction security and reliability.
Context and numbers: what this means for consumers and the operator
ABS rules effective since March 2024 aim to curb surcharges on PayNow payments, a platform used by more than 300,000 registered businesses in Singapore. While most merchants aren’t allowed to impose such fees, Singapore Pools has argued that it recovers processing costs through its existing contracts with partner banks. The situation highlights the complexity of balancing regulatory compliance with the commercial realities of high-volume payment processing in the gambling sector.
Parliamentary interest and wider gambling fee issues
The PayNow fee dispute follows another parliamentary episode related to gambling fees. In 2024, Singapore’s casinos faced scrutiny over entry levies after a lapse led to $4.4 million in excess collections. Although the government indicated its intent to maintain higher levies pending updates, the episode underscored ongoing concerns about how gambling-related fees are set and enforced, and how public funds are managed in regulated industries.
Financial performance context
Singapore Pools reported a turnover of about $12.7 billion in the 2024/2025 financial year, up from $12.2 billion the previous year. The fee discussion arrives amid broader debates on cost transparency, consumer protection, and the responsibilities of government-linked operators to operate within agreed regulatory boundaries while ensuring service reliability and security.
What comes next
With ABS and MAS overseeing compliance, the focus will likely be on how refunds, if any, might be considered and whether adjustments to Singapore Pools’ PayNow fee structure are warranted. Consumers and merchants alike will be watching to see if the 10-cent transaction charge remains or is rolled back as part of a broader alignment with PayNow’s surcharge policy.
