A Brief History
Nets’ advantage in payments goes back to its founding. Established by a consortium of local banks in 1985, the firm was set up to drive the adoption of electronic payments in Singapore. As part of an agreement with its three founding banks – DBS, OCBC, and UOB – Nets was granted the right to be their only acquirer, responsible for signing up merchants to the ecosystem. Meanwhile, the banks took care of signing up customers by issuing them debit cards.
What is SGQR+?
While SGQR+ does not immediately make all payment methods acceptable on a single QR code, it is a step in that direction. The solution enables merchants to process transactions from a network of payment schemes by working with any one merchant acquirer. This means a customer using the ChangiPay e-wallet can pay at merchants that accept ShopeePay and FavePay, as all three platforms are under one track.
A Cross-Border QR Payment Link
A cross-border QR payment link between Singapore and Indonesia’s QRIS established in November 2023 was touted by the MAS as being a "milestone for Singapore’s growing cross-border payments linkages." Similar agreements have been drawn up between Nets QR and Malaysia’s DuitNow and Thailand’s PromptPay.
Who Wins?
Digital banks, e-wallets, and financial institutions not already part of Nets’ network will stand to benefit the most from the introduction of SGQR+. At the moment, QR payments via the MariBank app are not supported by all merchants accepting SGQR codes. One "pain point that our customers face is the limited locations where they can scan and pay using the MariBank app," the company spokesperson tells Tech in Asia.
Conclusion
The introduction of SGQR+ marks a significant shift in the payments landscape in Singapore. With the ability to process transactions from a network of payment schemes, merchants can now accept payments from a wider range of customers. The solution also opens up new opportunities for digital banks, e-wallets, and financial institutions to expand their customer base.
FAQs
Q: What is SGQR+?
A: SGQR+ is a solution that enables merchants to process transactions from a network of payment schemes by working with any one merchant acquirer.
Q: Who will benefit from SGQR+?
A: Digital banks, e-wallets, and financial institutions not already part of Nets’ network will stand to benefit the most from the introduction of SGQR+.
Q: Will SGQR+ be available internationally?
A: Yes, Liquid Group plans to roll out its solution locally and overseas from Q1 2025, bringing its offering to markets in Asia-Pacific and South America.
Q: Will Nets open its cross-border payment rail to more local participants?
A: Never say never, according to Nets’ CEO Lawrence Chan.
