The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have announced the upcoming launch of new payment solutions in mid-2025. These initiatives aim to enhance Singapore’s digital payment ecosystem, making transactions more seamless, secure, and inclusive for individuals and businesses.
The U.S. dollar’s dominance in global payments, through SWIFT has led to its use as a tool for enforcing sanctions. This has prompted various countries to seek alternatives, reducing reliance on U.S.-based systems.
Globally countries are developing central bank digital currencies (CBDCs) which is block chain based currency and are developing decentralised payment platforms. Countries are seeing crypto assets and blockchain-based payment systems as one of the measures to insulate themselves against any future U.S. sanctions.
EU is exploring digital euro and China is using digital yuan (e-CNY). Geopolitical tensions can lead to conflicting regulatory requirements, making it difficult for U.S. payment systems to operate globally. This will be accelerated by data localization laws in various countries, making it mandatory for business entities to store data locally.
The Singapore Electronic Deferred Payment (EDP) is a payment initiative introduced by the Monetary Authority of Singapore (MAS) to enhance the flexibility and convenience of digital payments for consumers and businesses. It is part of Singapore’s broader efforts to modernize its payment infrastructure and promote financial inclusion. The EDP system allows consumers to make purchases and defer payment for a specified period, similar to a “buy now, pay later” (BNPL) model, but with a focus on integrating this functionality into Singapore’s existing digital payment ecosystem. It is designed to provide greater flexibility for consumers while ensuring secure and efficient transactions. EDP is integrated into Singapore’s existing digital payment systems, such as PayNow and FAST (Fast and Secure Transfers).
Purpose-Bound Money (PBM) is a digital payment protocol that allows money to be programmed for specific uses or conditions. For example, government vouchers or subsidies can be issued as PBM, ensuring they are only spent on approved goods or services. This system leverages blockchain or distributed ledger technology (DLT) to enable secure and transparent transactions. Interoperable Payment Solutions improves interoperability between different payment systems and platforms. This will allow users to make payments seamlessly across various networks, including PayNow, FAST (Fast and Secure Transfers), and cross-border payment. The goal is to reduce friction in transactions, especially for cross-border payments, and enhance user convenience.
Initiative is aimed at driving Financial Inclusion for ensure that all individuals and businesses, including small and medium enterprises (SMEs), can access and benefit from digital payment solutions.
New payment platform will enhance the security of digital transactions by leveraging advanced technologies like blockchain and encryption. It will Streamline payment processes to reduce costs and processing times, particularly for cross-border transactions and foster innovation in the financial sector by encouraging the development of new payment solutions and services.
Consumers will have greater convenience and flexibility in making payments both domestically as well as internationally as transactions will have enhanced security and transparency in digital transactions. Business will have improved cash flow management through faster and more efficient payment systems and will have access to new markets through seamless cross-border payment solutions.
Payment system will strengthening Singapore’s position as a global financial hub and leader in digital payments. The two payment solutions are expected to be launched in mid-2025. MAS and ABS will work closely with financial institutions, technology providers, and other stakeholders to ensure a smooth rollout. The new solutions are expected to benefit individuals, businesses, and the broader economy by making payments faster, safer, and more accessible.
Singapore is becoming one of the leading countries in offering global payment platform solutions. To preserve United States geopolitical might, US is also developing alternative payment systems, such as FedNow (the U.S. instant payment system), to reduce reliance on a single network and exploring the potential of a U.S. central bank digital currency (CBDC).
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