SINGAPORE: To make digital payments more accessible and user-friendly, on Oct 31, the Monetary Authority of Singapore (MAS) announced the launch of a proof of concept (POC) for an interoperable Singapore Quick Response Code Scheme, or SGQR+.
The POC, scheduled to run from Nov 1 to 30, 2023, aims to explore the feasibility of enabling merchants in Singapore to accept QR payments from various payment schemes through a single financial institution, providing a significant leap towards streamlining payment acceptance for both businesses and consumers.
The original SGQR, introduced in 2018, made it simpler for merchants to accept digital payments. However, there was a catch – merchants wanting to accept a variety of payment schemes, whether local or foreign, had to maintain commercial relationships with different financial institutions.
Consumers and tourists could only use their preferred payment applications at establishments with specific ties with corresponding financial institutions. Such limitations have led to a growing need for enhanced interoperability in QR payments.
With SGQR+, merchants only need one bank to handle many payment methods, making life easier for businesses and consumers.
Users can anticipate using their preferred payment applications at more merchant acceptance points. This is great news for tourists who can now conveniently make transactions using their native payment applications, as merchants empowered by SGQR+ will be equipped to effortlessly accept a broader array of international payment schemes.
During the POC, SGQR+ will be rolled out with 23 payment schemes across more than 1,000 merchant acceptance points, including locations at the Singapore FinTech Festival (SFF) and in the Changi district.
The POC will be conducted through two separate tracks, each featuring different technology solutions:
- Track I, spearheaded by Liquid Group, will operate a switch that facilitates payments between the financial institution serving the merchant and the financial institution serving the consumer. This track also allows consumers to utilize payment applications linked to their credit cards for scanning and payments at participating merchants associated with Liquid Group.
- Track II, led by NETS, will enable consumers to scan and pay at NETS-affiliated merchants using various local and foreign payment schemes. This solution, already available to merchants participating in the Government-subsidised Hawkers Go Digital programme, will undergo testing to determine its commercial feasibility for deployment across other merchant segments, with merchants covering the associated costs.
Banking Computer Services Pte Ltd, the operator of the SGQR Central Repository, will oversee the management of the POC and provide technical support to the participants involved.
Mr Sopnendu Mohanty, Chief FinTech Officer of MAS, expressed his optimism on SGQR+, stating, “SGQR+ is a significant leap in interoperable QR payments. It will streamline payment acceptance for merchants and substantially increase the number of merchant acceptance points for both local and foreign consumers to use their preferred e-wallet or banking application. The POC launch paves the way for Singapore to become a global leader in QR payments and a potential QR payments hub.”
To get more detailed insights on how SGQR+ works, the POC, and its constituent tracks, you can read the comprehensive whitepaper titled Interoperable QR Payments in Singapore. The results of the POC will be analyzed in another report, showing the potential of deploying SGQR+ on a larger scale.