Overview: The PayNow Surcharge Question
Singapore’s PayNow system, widely used by retailers and service providers, is governed by strict rules that prohibit merchants from imposing surcharges on customers for PayNow transactions. Yet, questions have arisen over a 10-cent fee charged by Singapore Pools for each PayNow transaction, including bets and prize claims. The issue has drawn attention at the highest levels of government and financial regulation as stakeholders seek clarity on fee structures and regulatory compliance.
Regulatory Position: ABS Rules on PayNow
Deputy Prime Minister Gan Kim Yong, who also serves as Minister for Trade and Industry and chairs the Monetary Authority of Singapore (MAS), stated in a written parliamentary reply that the Association of Banks in Singapore (ABS) owns the PayNow scheme and enforces rules that prevent merchants from imposing PayNow surcharges on customers. He indicated that major retail banks waive transaction fees for payments received from end-consumers, with only minimal charges applying for merchants if they use additional services like payment notifications.
Singapore Pools’ Fee: What We Know
Singapore Pools, a legalised operator for sports, lotteries, and horse racing and a subsidiary of the Tote Board, maintains a 10-cent fee for each PayNow transaction. This fee applies to bet placements and prize claims. The company has acknowledged the charge but has framed it as not a new practice, noting it predates ABS’s surcharge prohibition rules. The ABS rules came into effect in March 2024, and Singapore Pools says it has disclosed applicable fees upfront on its website and app.
What Is Being Investigated
The Straits Times requested details on how long the surcharge has been in effect, the total amount collected, and whether refunds would be issued. Singapore Pools did not provide those specific figures but emphasized ongoing collaboration with partner banks to ensure compliance with ABS regulations while preserving transaction security and reliability. The watchdog role of ABS and MAS means that any perceived violation could trigger regulatory review and potential adjustments to fee structures.
Broader Context: Fees in Gambling and Government Oversight
The PayNow surcharge issue is part of a broader scrutiny of gambling-related fees in Parliament in the past year. Separately, regulators addressed an enforcement lapse around entry levies at casinos, which led to higher-than-legal charges for a brief period. These episodes highlight Singapore’s approach to ensuring that consumers are not subject to unexpected or excessive charges in regulated sectors, including state-linked gambling operators.
Implications for Consumers and Merchants
For consumers, the key takeaway is clarity and transparency. ABS rules require upfront disclosure of any fees, and banks generally do not charge merchants for PayNow payments passed to end-customers. If a merchant imposes a surcharge—especially in a prohibited manner—consumers may look to regulators for redress or refunds. For Singapore Pools, the 10-cent fee represents a small deduction per transaction, but it raises questions about the fairness of fees in a system designed for low-cost or free consumer payments.
What Comes Next
With ABS in talks with Singapore Pools, expect further updates on how PayNow transaction costs will be regulated moving forward. Stakeholders—including customers, banks, and regulatory bodies—will be watching closely to ensure that fees remain transparent, justifiable, and compliant with the overarching framework that governs digital payments in Singapore.
Conclusion: Balancing Regulatory Compliance with Operational Viability
As Singapore continues to expand its digital payment landscape, the balance between enforcing no-surcharge rules for PayNow and allowing essential operators like Singapore Pools to cover processing costs will shape the sector’s evolution. The ongoing dialogue among ABS, MAS, and the Tote Board will be crucial in maintaining consumer trust while supporting the financial ecosystem’s stability.
