Things to know about the integration of UPI and PayNow | Fusion - WeRIndia

Things to know about the integration of UPI and PayNow

Things to know about the integration of UPI and PayNow

Unified Payments Interface (UPI) helps faster payments through mobile phones. Now, UPI has been integrated with PayNow, a similar network used in Singapore. The integration of UPI and PayNow enables faster remittances between India and Singapore.

The UPI system allows customers to make instant payments 24×7. The main interesting thing about the system is there is no need to share bank account details. Also, UPI supports both P2P and P2M payments. UPI users can send or receive money.

Similarly, PayNow in Singapore also allows users to send or receive money instantly. They can send or receive money from their account or e-wallet to another through their mobile phone number. It is a near-instant real-time payment system.

While the National Payments Corporation of India (NPCI) developed the UPI system, the Association of Banks in Singapore developed PayNow.

Here are some important things to know about the linkage between UPI and PayNow:

  • The integration or linkage of UPI and PayNow facilitates cross-border remittances.
  • This low-cost funds transfer is beneficial for many Indians in Singapore, especially students and migrant workers.
  • The linkage aims for faster remittances between both countries. That is, it allowers users in India and Singapore to pay or receive funds instantly.
  • It allows users to send money in real-time through a QR code or their mobile number linked to their bank accounts.
  • Currently, it allows only P2P remittances or person-to-person transactions. Users can send money for the maintenance of their family members or relatives in Singapore. They can also send money as a gift under the Liberalised Remittance Scheme (LRS).
  • The LRS will have limits. Users are allowed to send money as per the limits.

Here is the procedure to enable the facility:

To enable the facility, users in India need to log into their net banking or mobile application. Choose the ‘I agree’ option under the foreign outward remittance to proceed. Enter the mobile number of the beneficiary and the amount before proceeding further. While confirming the transaction with an OTP or UPI PIN, check the summary and exchange rates.

Users in Singapore can enable it by logging into the PayNow application. Select the UPI and enter UPI ID under the overseas transfer section. Enter the amount and check the amount before proceeding further. Click on ‘Transfer Now’ to complete the transaction.

Image from Maxpixel (Free for commercial use / CC0 Public Domain)

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