PromptPay and PayNow are digital payment systems developed to facilitate peer-to-peer (P2P) and business-to-consumer (B2C) transactions in Thailand and Singapore, respectively. Both systems are part of the national payment infrastructures of their respective countries, but they differ in terms of features, usage, technology, and cross-border payment compatibility. Below, I’ll outline the core differences and similarities between PromptPay and PayNow to give you a comprehensive comparison of the two systems.
1. Introduction to PromptPay and PayNow
- PromptPay: PromptPay is Thailand’s national electronic payment system developed by the Bank of Thailand. Launched in 2017, it allows users to transfer funds through linked phone numbers, ID numbers, or bank account numbers. PromptPay is part of Thailand’s National e-Payment Master Plan, aiming to reduce cash dependency, lower transaction fees, and boost digital transactions across the country.
- PayNow: PayNow is Singapore’s real-time fund transfer service introduced by the Association of Banks in Singapore (ABS) in 2017. Similar to PromptPay, it allows users to transfer money through mobile numbers, NRIC/FIN numbers, or unique identifiers like UENs (for businesses). PayNow supports P2P, B2C, and business-to-business (B2B) transactions.
2. Technology and Infrastructure
Both systems leverage advanced digital banking infrastructures to enable real-time transactions with minimal transaction fees. They use bank identification codes (BICs), QR codes, and are integrated into mobile banking apps. They also connect with other regional payment systems as part of ASEAN’s push towards cross-border interoperability.
- PromptPay is managed under Thailand’s National ITMX (Thailand’s electronic interbank transfer system), a key part of the Bank of Thailand’s digital infrastructure.
- PayNow operates under Singapore’s FAST (Fast and Secure Transfers) payment network, enabling near-instantaneous transfers among participating banks and financial institutions.
3. Linkage to Unique Identifiers
- PromptPay: Thai users can link their national ID, phone numbers, or tax identification numbers to their bank accounts to receive payments. This linkage allows for ease of transactions, especially for those without bank account details.
- PayNow: Users in Singapore can link their mobile numbers, NRIC (for individuals), or UEN (for businesses) to their bank accounts for convenient transactions. PayNow’s UEN feature makes it especially useful for business payments, allowing for a simplified B2B and B2C transfer process.
4. QR Code Payments
QR codes are an integral part of both PromptPay and PayNow, as they allow users to make payments simply by scanning codes displayed by merchants, friends, or online.
- PromptPay: PromptPay utilizes a QR code system widely accepted across retail, food, transport, and even government payments in Thailand. QR codes can be generated through banking apps, making it accessible for both individuals and businesses.
- PayNow: Similarly, PayNow offers a QR code-based payment system. In 2018, Singapore adopted the Singapore Quick Response Code (SGQR), which combines various payment methods, including PayNow, in a unified QR code, making it easy for businesses to manage multiple payment types with one code.
5. Cross-Border Payment Compatibility
ASEAN member countries have been working toward greater cross-border interoperability between their national payment systems, and PromptPay and PayNow are among the first systems to achieve cross-border linkage.
- PromptPay-PayNow Linkage: In 2021, Thailand and Singapore launched the PromptPay-PayNow cross-border payment link, allowing users to transfer funds across countries using their mobile numbers. This service enables real-time, low-cost, cross-border transactions in both Thai baht and Singapore dollars, fostering stronger financial connectivity within ASEAN.
- Current Expansion Efforts: This linkage is part of a broader goal to expand digital payment interoperability within the region, with countries like Malaysia and Indonesia also in talks for similar partnerships.
6. Transaction Types
- PromptPay: PromptPay primarily supports P2P transactions, government-to-person (G2P) payments, and B2C transactions. This includes government welfare payments, tax refunds, and transfers from the private sector, making it a versatile tool for a wide array of payments. Many small and medium enterprises (SMEs) and even informal vendors use PromptPay as a primary payment method.
- PayNow: PayNow supports P2P, B2B, and B2C transactions, with a strong emphasis on business-related payments through the use of UENs. The integration with SGQR also enables PayNow to be an effective tool for in-store payments, and larger corporate transactions, aligning with Singapore’s focus on becoming a Smart Nation.
7. User Demographics and Adoption Rates
- PromptPay: The user base for PromptPay is extensive in Thailand, particularly among individuals and SMEs. By 2024, PromptPay has become one of the most widely used payment methods in the country, largely due to government support, low transaction fees, and widespread QR code adoption.
- PayNow: PayNow has a broad user base in Singapore, from individuals to large corporations. Singapore’s digitally savvy population has embraced PayNow for both personal and professional transactions, and the SGQR initiative has increased merchant adoption by simplifying QR code-based payments.
8. Government Support and Policies
- PromptPay: The Thai government has strongly supported PromptPay, integrating it into welfare distribution, public sector payments, and tax refund systems. This level of integration has positioned PromptPay as a key driver of Thailand’s digital economy.
- PayNow: The Singaporean government has also backed PayNow, but with an emphasis on facilitating seamless business transactions and minimizing cash usage across various sectors. The SGQR initiative, which incorporated PayNow, was developed to streamline the payment experience across the country.
9. Security and User Protection
Both PromptPay and PayNow are regulated by their central banks, and they employ stringent security protocols to protect users.
- PromptPay: The Bank of Thailand oversees PromptPay’s compliance with data security and transaction monitoring standards, ensuring safe transactions. Thai banks have also integrated OTP (One-Time Password) and biometric authentication to bolster security.
- PayNow: The Monetary Authority of Singapore (MAS) regulates PayNow, mandating high-security standards, including two-factor authentication (2FA) and transaction monitoring. Additionally, participating banks employ advanced encryption methods to protect transaction data.
10. Fees and Cost-Effectiveness
- PromptPay: Most domestic transactions via PromptPay are free or incur very minimal charges, depending on the transaction amount and bank policies. This cost-effectiveness is one of the reasons for PromptPay’s popularity among users in Thailand.
- PayNow: Similarly, PayNow transactions are typically free for individuals. However, some business-related transfers or high-value transactions may incur nominal fees, which vary depending on the financial institution.
11. Currency and Conversion for Cross-Border Transfers
- PromptPay: Cross-border transactions with Singapore use Thai baht for inbound transactions and allow conversion into Singapore dollars for outbound transactions to Singapore.
- PayNow: Cross-border transactions with Thailand allow Singapore dollars to be converted into Thai baht seamlessly. The conversion rate depends on prevailing foreign exchange rates at the time of transfer.
12. Real-Time Processing
- PromptPay: Domestic transfers are processed in real-time, with cross-border transfers to Singapore also completed almost instantaneously, depending on bank processing times.
- PayNow: PayNow offers real-time fund transfers within Singapore and between Singapore and Thailand, making it convenient for users to send and receive funds promptly.
13. Availability of Services
- PromptPay: Accessible through major Thai banks’ mobile applications and ATMs, PromptPay is available 24/7.
- PayNow: Similarly, PayNow is available through major Singaporean banks and is accessible 24/7, allowing for uninterrupted financial transactions.
14. Future Developments and Potential
- PromptPay: Thailand’s Bank of Thailand continues to explore further integration within ASEAN’s digital payments ecosystem, with potential expansion of PromptPay’s cross-border capabilities to other neighboring countries.
- PayNow: Singapore’s digital economy initiatives include expanding cross-border partnerships. Efforts are underway to link PayNow with other payment systems in ASEAN countries to foster greater regional financial integration.
Summary of Differences and Similarities
| Feature | PromptPay (Thailand) | PayNow (Singapore) |
|---|---|---|
| Launched | 2017 | 2017 |
| Supported Transaction Types | P2P, G2P, B2C | P2P, B2C, B2B |
| Unique Identifiers | National ID, Phone Number | Mobile Number, NRIC/FIN, UEN (for businesses) |
| QR Code System | PromptPay QR | SGQR |
| Cross-Border Payments | Linked with PayNow for THB-SGD transfers | Linked with PromptPay for SGD-THB transfers |
| Regulatory Body | Bank of Thailand | Monetary Authority of Singapore |
| Main Target Users | Individuals, SMEs, government payments | Individuals, SMEs, large corporations |
| Cost of Transactions | Free or minimal cost for domestic; low fees for cross-border | Free for domestic; minimal fees for high-value/business transfers |
| Availability | 24/7 through bank apps and ATMs | 24/7 through bank apps |
| Future Developments | Potential ASEAN expansion, digital currency integration | Further ASEAN linkage, expansion of digital economy initiatives |
Conclusion
PromptPay and PayNow reflect Thailand and Singapore’s commitment to fostering cashless, digital economies while enhancing financial inclusion and convenience. Their similarities, like real-time processing, low fees, and QR code payments, underscore their shared vision for digital financial ecosystems. However, distinct differences in adoption strategies, integration of government support, and focus areas reveal the unique ways each system supports its country’s economic and social goals. The cross-border interoperability between PromptPay and PayNow is a testament to ASEAN’s commitment to financial integration, which promises to make digital payments more seamless and accessible across the region in the years to come.
