How many times have we witnessed small vendors asking us to make mobile payments? Technology is growing at a speed faster than ever, and the world is moving with it. The everyday transaction system is one of the products of this rapid shift that has smoothly transitioned from innovative bank transfers to revolutionising instant payments. From consumers to businesses, people are ditching the traditional method of bank transfer and opting for fast, real-time transactions like PayNow.
PayNow is an RTP (real-time payment) platform launched by the Association of Banks in Singapore (ABS), allowing users to send and receive money in seconds. It facilitates multiple ways through the customer’s mobile number, QR code and UEN (Unique Entity Number). If you are still not aware of the details, let’s break down the difference between PayNow and traditional bank transfers. Keep reading.
How is PayNow Different from Conventional Bank Transfer Methods
Let’s see what the two payment methods bring to the table and what best aligns with today’s modern consumers:
1. Real Time vs Processing Delays:
Even the people who have very little knowledge about PayNow and Bank transfers would instantly point out the vast difference in speed between the two. There is significant variation in their transaction time. The traditional bank transfer takes long hours or even up to 3-5 working days to process your payment. This happens especially in the case of interbank transfer, or when payments are made after cut-off times or on weekends.
PayNow brings along both speed and convenience, allowing you to transfer funds instantly 24/7. Yes, even on public holidays. This has become a game-changer for consumers and businesses alike, resolving their monetary challenges.
2. Straightforward Usage:
No matter how much of a tech geek the world becomes, when it comes to handling financial matters, we want things to be uncomplicated and effortless. Let’s agree that bank transfers can take a painful journey of fulfilling multiple steps. It includes:
- Bank login
- Select a transfer option
- Enter the recipient’s bank name, account number and branch code.
- Double-check everything
- Wait for confirmation
- Wait for the amount transfer
Meanwhile, with PayNow, you don’t have to fumble or learn the recipient’s details by heart. You can send them money by just using a few things that are already accessible, for example:
- Mobile number
- NRIC/FIN
- UEN (only for business)
- Or a scannable QR code
3. Availability:
With bank transfers, there are certain clauses as to when you can or cannot make the payment. It restricts you from sending or receiving the money when you actually need it, as it’s not available around the clock. They come with warning labels and may not allow you to make transactions during:
- Cut-off times (for instance, no transfers after 8 p.m., etc).
- Weekends and Public Holidays
- Bank Maintenance Window
PayNow is not just instant but also accessible 24/7 and 365 days a year. You can ease your financial transactions without being held by the bank’s calendar. Whether you are shopping online in the middle of the night or paying money for an emergency at weekends, you can simply PayNow in real time.
4. Fees and Charges:
No one wants to pay a penny extra when they are already giving out money. And we all know this doesn’t hold true when making payments via bank transfers. They may levy some hidden charges, exchange rates and other fees, especially for cross-border transactions. In contrast, PayNow brings a cost-effective solution, with zero to no additional fee charged by the bank. You do not have to pay for any signup or usage fees. However, it only requires businesses to pay 1.3% of the amount they receive from the customers using PayNow.
5. Security Aspect:
The biggest risk that always surrounds them is whether their transactions are secure or not. While both PayNow and bank transfers offer highly secure payments backed by government authorities or associated banks, PayNow definitely adds an extra layer of privacy. PayNow utilises a data tokenisation process with information like photo numbers and QR codes instead of the bank details of an individual. This increases privacy and reduces the risk of your sensitive data being leaked. Additionally, PayNow also needs two-factor authentication (2FA), the same as traditional online banking. At the end of the day, you are not sacrificing security for convenience. You simply enhance both.
Conclusion
Whether you are splitting the bill at the dinner table, sending money to family, or paying for freelance work, instant payment has seeped into our daily needs. PayNow puts forth a clear statement—the future is instant, safe and stress-free. Waiting hours or days for a bank transfer feels too outdated now. However, that doesn’t mean this payment method is extinct or that it will become so in future. But by the looks of the current banking industry and consumer trends, real-time payment rules the future. Do we really want to wait for days when we can just PayNow?
