The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced on December 5, 2024, their plans to launch two innovative electronic payment solutions in mid-2025. These solutions aim to facilitate the transition from cheques to e-payments for both corporate and retail users, aligning with Singapore’s push towards a cashless economy.
The new solutions, Electronic Deferred Payment (EDP) and EDP+, are designed to address specific use cases. EDP will cater to post-dated payments, while EDP+ is tailored for transactions requiring greater certainty of payment. Both will be integrated into digital banking platforms and leverage PayNow, Singapore’s widely used real-time payment system, to simplify payee identification.
Transitioning to E-Payments
MAS and ABS are encouraging businesses and individuals to adopt these e-payment methods once they become available. The new solutions will complement Singapore’s robust existing suite of e-payment modes, including PayNow, FAST, GIRO, and MEPS+. By enhancing convenience and reliability, EDP and EDP+ are expected to accelerate the nation’s shift away from cheque-based transactions.
Extended Deadline for Corporate Cheques
To provide businesses with adequate time to transition to e-payments, MAS and ABS have extended the deadline to cease the processing of corporate cheques by one year. Initially, all banks in Singapore were set to stop issuing new corporate cheque books by the end of 2025, with the cessation of cheque processing scheduled for the same year. However, the revised timeline now allows cheque processing to continue until December 31, 2026.
Corporate payees are advised to clear their cheques well before the new deadline to ensure processing is completed on time. This extension reflects feedback from the corporate sector, highlighting the need for more time to adapt to e-payment alternatives.
Retail Cheques and Other Payment Instruments
While the focus is on phasing out corporate cheques, retail cheques will remain available alongside cashier’s orders and USD cheques for both corporate and individual customers. Additionally, major retail banks in Singapore will continue to waive cheque service fees for senior citizens, ensuring accessibility for those who rely on traditional payment methods.
Public Consultation and Transition Planning
MAS and ABS are committed to a smooth transition for all stakeholders. Plans to sunset corporate cheques include public consultations and targeted outreach to ensure businesses and individuals are well-informed about the new payment solutions and their benefits.
The introduction of EDP and EDP+ marks a significant step forward in Singapore’s journey toward becoming a cashless society, aligning with its broader goals of enhancing financial inclusivity and adopting cutting-edge payment technologies. Businesses and consumers alike are encouraged to embrace these innovations as they become available, paving the way for a more efficient and secure financial ecosystem.
For more details and updates, stakeholders can consult the official websites of MAS and ABS.