PayNow QR code: How to generate and accept payments in Singapore

A global survey by Airwallex and Edgar, Dunn & Company found that 77% of consumers will abandon their cart if their preferred payment method isn’t offered. That's why it's so important to offer local payment methods like PayNow QR codes. 

As of 2022, there are 5 million PayNow users in Singapore - about 89% of the country’s population.¹ While credit and debit cards remain the most popular payment method, 240,000 businesses also accept PayNow for the customers who prefer it.

In this article, we'll explain how PayNow QR works, what PayNow Corporate is, and how your business can benefit from displaying a static QR. We'll also show you how Airwallex makes it easy to accept PayNow on your eCommerce store or invoices via dynamic QR codes. 

What are PayNow QR codes?

PayNow is a payment method in Singapore as well as a fund transfer service. It allows customers in Singapore to send and receive money instantly. They can transfer funds with just the recipient’s mobile number, National Registration Identity Card (NRIC), or Unique Entity Number (UEN). It simplifies transactions for both individuals and businesses by eliminating the need to manually enter bank details.

The PayNow QR code is a simple and secure way for your business to receive cashless payments. You can integrate the PayNow QR into payment gateways like Airwallex, allowing you to offer customers this convenient payment option on eCommerce checkout pages and through Payment Links.

Businesses can generate two kinds of PayNow QR codes:

• Static PayNow QR code. This is a fixed QR code where customers need to scan the code with their online banking app. With a static QR code, customers must manually enter the payment amount. Static QR codes are ideal for hawker stalls and other businesses with consistent prices.

• Dynamic PayNow QR code. This is a unique QR code generated for each transaction. The exact payment amount appears when the customer scans the code. Dynamic PayNow QR codes can be created by payment gateway providers like Airwallex. 

How do PayNow QR codes work?

PayNow QR codes allow customers to pay vendors instantly by scanning the code with their mobile banking app. Here’s the step-by-step process of how PayNow QR codes work: 

Step 1: Your customer selects PayNow as the payment option at checkout.

Step 2: Your customer opens their banking app and scans the QR code.

Step 3: The payment amount and your business’ name appears. Your customer reviews these details before confirming the payment.

Step 4: Your customer is redirected back to your eCommerce store once the payment is completed.

*For a Mobile Checkout flow, the shopper needs to save the QR code generated in their mobile’s photo gallery, relaunch their bank app, and scan the QR code to pay. 

What is PayNow Corporate and why is it important for businesses?

PayNow Corporate is a service that allows businesses and other organisations to instantly accept PayNow payments. It was launched by the Association of Banks in Singapore (ABS) in August 2018². 

If your customers are in Singapore, adopting PayNow Corporate is important because it lets you accept PayNow payments at your store, website, or mobile app. There’s no need to share bank details or ask for manual transfers. Customers can simply use your UEN or scan a QR code, making payments smooth and hassle-free.

Here are some ways organisations use PayNow Corporate to accept payments:

• Brick-and-mortar retail purchases. A customer at a physical store scans the SGQR+ code at the checkout counter. The SQQR+ is a unified QR code allows businesses to display only one QR code to accept PayNow and other QR-based payment methods.

• Online shopping. An eCommerce business integrates PayNow Corporate into their payment gateway using providers like Airwallex, allowing customers to choose PayNow during checkout for quick and secure payments.

• Invoice payments. A business or freelancer sends an invoice to a client with their UEN or PayNow QR code. This enables the client to pay without entering bank account details or payment amounts, helping them complete transactions without any delays. Airwallex’s integration with Xero lets you automatically generate a dynamic PayNow QR code on Xero invoices.  

How to register for PayNow Corporate

To register for PayNow Corporate, you need a corporate bank account from participating banks like DBS and OCBC.³ When your application is approved, you can link your business’ UEN to PayNow Corporate via the online banking dashboard.

How do businesses generate PayNow QR codes to accept payments?

Once you’ve registered your business for PayNow Corporate, generating PayNow QR codes to accept payments is quick and easy. Brick-and-mortar businesses can generate a static PayNow QR in 3 steps: 

1. Log in to your bank’s online banking platform.  Look for the PayNow Corporate section and select the option to generate a QR code.

2. Generate and display the QR code. Then, print or display the QR code at your physical store.

3. Start accepting payments. Customers can now scan the QR code with their mobile banking app to make instant payments directly to your business account.

You can also ask for your bank’s help to create a unified SGQR+ code that supports PayNow and other digital wallets.⁴

To create a dynamic QR code for your eCommerce store, you need a payment gateway like Airwallex that supports PayNow at checkout. Some payment gateways have no-code integrations with eCommerce platforms like Shopify, which means you can get it up and running with minimal technical resources.

How to use Payment Links to accept PayNow payments

If you don’t have a website, Airwallex’s Payment Links lets you accept PayNow transactions in seconds. A payment link is a direct payment URL that businesses can quickly generate and share with customers. It makes collecting payments easy—just send the link via email, text, or through your invoice. 

Customers who click on the Airwallex Payment Link can pay through PayNow or their preferred payment method. If you use Xero, our Xero integration automatically generates a Payment Link on your invoices. 

Benefits of accepting PayNow QR payment for business transactions

PayNow QR codes are crucial for businesses catering to Singapore customers. There are many advantages to accepting PayNow:

• Encourage checkout. Customers are more likely to abandon their cart if their preferred payment method isn’t available. Offering PayNow caters to customers who prefer instant SGD transfers over credit card payments. PayNow transactions also typically come with lower fees compared to credit card payments, making it a more economical option for businesses, especially for frequent or high-volume payments.

• Convenience. Customers can pay instantly with just a UEN or QR code. There’s no need for lengthy bank details, making transactions quick and easy.

• Real-time transfers. PayNow uses Singapore’s FAST Network, an electronic fund transfer service that offers near-instant transfers across banks.⁵ Real-time transactions improve cash flow and keep your business operations running smoothly without delays.

• Widely accepted. PayNow is trusted by businesses, government agencies, and organisations across Singapore, making it an essential payment method for any local company.

• Secure transactions. PayNow follows the same high-security standards set by the ABS for fund transfers.

• Easy to integrate. PayNow QR isn't limited to just in-person transactions; You can easily integrate it with eCommerce payment gateways for online payments as well. Platforms like Airwallex enable PayNow payments on your eCommerce store, app, or invoices.

While PayNow Corporate offers many benefits, it does have a few drawbacks:

• Transfer limits. There are daily, monthly, or annual transfer limits set by each bank.⁶

• Technical expertise. While accepting payments through your UEN is straightforward, generating dynamic QR codes or integrating PayNow into your payment gateway will require some technical resources.

• Limited to Singapore. PayNow is limited to Singapore, which means you need to provide other payment methods if you serve overseas customers. Airwallex's Payment Gateway makes global transactions simple by supporting payments from over 160+ payment methods, including PayNow, and payments in 180+ currencies.

Accept international and local payments with Airwallex 

While PayNow is essential for your Singapore customers, you’ll need a way to provide local payment options for your overseas markets too.

That’s why global businesses use Airwallex to accept payments in 180+ countries. By offering a variety of popular payment methods, businesses can increase sales and provide a seamless checkout experience for their customers. 

With Airwallex, there are two flexible ways to offer PayNow and other payment methods:   

• Though our payment gateway: Airwallex’s payment gateway lets your eCommerce store accept payments in Singapore and globally through PayNow and 160+ other payment methods like WeChat Pay and Alipay. You can also embed a QR code element on your payment page so your customers can scan and pay via their preferred method.

• Through our Payment Links: Instantly generate payment URLs or a QR code via the Airwallex web app.

On top of global payment acceptance, Airwallex powers your overseas growth through multi-currency features. Our platform offers like-for-like settlement in 11 currencies, including USD, EUR, and CNY. This means you can receive and withdraw these currencies without unnecessary conversion into SGD, helping you avoid foreign exchange fees.

Our platform also offers multi-currency Global Accounts where you can receive and hold 23+ currencies, then pay suppliers in that same currency. This lets you stretch the value of every dollar you receive and avoid double conversion fees.

Our QR codes also come with 3D secure authentication and fraud protection, so you can protect yourself from fraudulent transactions while boosting your conversion rate. 

Final thoughts

PayNow provides Singapore businesses with a quick, secure, and trusted way to accept payments. Over 90% of merchants in Singapore offer the iconic PayNow QR code at the point-of-sale or checkout page.⁷ 

However, PayNow only works within Singapore. You need to offer other payment methods to satisfy the needs of global customers. Airwallex solves this problem by allowing businesses to accept PayNow and 160+ local payment methods like WeChat Pay and Alipay, all through a single platform. Our payment gateway and links give businesses the flexibility to serve both local and international customers. 

With Airwallex, businesses like yours can win new markets with a tailored shopping experience and local payment options that customers know and trust. 

FAQs

1. How does the SGQR code enhance the functionality of PayNow QR codes for businesses?

The SGQR code enhances the functionality of PayNow QR codes by combining multiple payment options into a single QR code, making it even more convenient for businesses and customers. With SGQR, businesses don’t need to display multiple QR codes for different payment services. Customers can simply scan one code and choose their preferred payment method, including PayNow. This single QR code simplifies the checkout process, reduces clutter, and improves the overall customer experience.

2. What are the security features of PayNow QR codes?

PayNow QR codes are protected by the same high security standards used by banks in Singapore, ensuring that transactions are encrypted and secure. Each transaction is processed through secure banking networks, reducing the risk of fraud or unauthorised access. As an extra layer of security, customers must authenticate payments through their mobile banking app.

3. Are there any transaction limits for using PayNow QR codes?

The transaction limits for using PayNow QR codes depend on the bank or financial institution you use to settle the payment. Some institutions allow up to S$200,000 per transaction. 

4. How can businesses track and reconcile payments made via PayNow QR codes?

Businesses can track and reconcile payments made via PayNow QR codes through their bank’s online banking platform. Each transaction is logged with a unique reference number. Platforms like Airwallex also streamline payments received from different payment methods and integrate them with accounting software like Xero. 

5. Do PayNow QR codes expire?

Static PayNow QR codes generally don't expire, as they are designed to be reused. However, dynamic PayNow QR codes, which are unique codes generated for specific transactions, may expire shortly after. Some payment gateways allow businesses to set expiration times based on their payment needs.

Sources

1. https://fintechlab.nus.edu.sg/singapores-payments-industry-the-way-forward-in-2023/

2. https://abs.org.sg/docs/library/paynow-launch---press-release-updated-final.pdf

3. https://www.abs.org.sg/consumer-banking/pay-now

4. https://www.mas.gov.sg/development/e-payments/sgqr/for-merchants

5. https://www.abs.org.sg/consumer-banking/fast

6. https://abs.org.sg/docs/library/fast-faq.pdf

7. https://www.channelnewsasia.com/singapore/e-payments-cashless-options-elderly-big-read-3502661

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.