Under the "Smart Nation" initiative, Singapore is making a transformation towards cashless and quick payment options. As per industry research by Mordor Intelligence, wallet-based and account-to-account payment methods are outpacing traditional payment modes in terms of growth. Official figures shared in the Singapore Parliament highlight that more than 65% of individuals aged 20 to 75 have registered for PayNow (account-to-account). In addition, industry estimates by PPRO indicate that GrabPay (wallet-based) has an estimated 4.9 million users. With the widespread adoption of these payment methods among individuals and businesses, leveraging them can help businesses streamline their payment collections.
To help businesses align with the evolving payment dynamics, Zoho Books enables both PayNow and GrabPay via the Stripe integration, making it easier for businesses and their customers to complete payments. Payments can be made by scanning QR codes, entering payment identifiers, or through online checkout using supported banking and other eligible payment applications.
What are PayNow and GrabPay?
PayNow is a bank-to-bank payment method in Singapore for quick fund transfers. Using PayNow, customers can transfer funds through a QR code, entering a registered mobile number, NRIC, or a business UEN.
GrabPay is a digital wallet available on the Grab app. Customers can add funds to their wallet and make payments online or by scanning a QR code.
While both payment methods are widely adopted, they are preferred in different circumstances. PayNow is commonly used for quick bank-to-bank transfers, whereas GrabPay is preferred for retail transactions.
Why do customers prefer quick payments?
Manual bank transfers are often considered less convenient in the era of quick payments. Bank transfers involve manually entering bank details, waiting time to get a payee added, and other references to complete payments. Customers may defer or postpone their payments owing to the tediousness involved in bank transfers. Payment methods like PayNow and GrabPay facilitate simple payments through an SGQR code. It is a single QR code that facilitates payment from any one of the accepted payment applications, enhancing flexibility and interoperability. Customers and merchants use these payment options, as they involve few steps, eliminate the need for bank details, and enable payments from familiar payment applications.
How these payment options can benefit your business
A real-life scenario
Consider a case where an invoice is due but the customer is new and doesn't have your bank details. This creates a delay in the payment. With flexible payment options like PayNow or GrabPay, they can pay you conveniently, eliminating the need for bank details. Additionally, customers don't have to worry about filling in the right payment details, as they would be automatically populated when they scan the QR code in the payment gateway. By making payments convenient for customers, you can speed up payment collections and strengthen your liquidity position.
PayNow and GrabPay in Zoho Books
The PayNow and GrabPay payment options are available in the Stripe payment gateway. When your customers tap the "Pay Now" button from your email/SMS or on an invoice in the Zoho Books customer portal, they can complete payments using supported methods, including QR-based payments. If you haven't integrated your Stripe account with Zoho Books, check this help documentation.
Update your books accurately
The payments received via PayNow and GrabPay can be tracked in Zoho Books, making it easier for you to account for these transactions. The transactions can be viewed in the account transaction report, resulting in fewer unidentified transactions and simpler reconciliation. Overall, this feature increases the accuracy of your accounting records and reduces the time involved in reconciling and processing transactions.
Small or big, offering value to customers is how a business stays relevant. The recent developments in the payment landscape are making payments simpler and more convenient. As a business, whether an SME, a startup, or a freelancer, it is crucial that you capitalise on these developments to enhance the customer experience and stay ahead of the curve.
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