PayNow Gen2 Wants One QR Code to Work Everywhere in Singapore

§ 01 Executive Snapshot

• What: PayNow Generation 2 initiative aims to enhance Singapore's digital payment system with improved interoperability and user experience.
• Who: The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) are key players in this initiative.
• Why it matters: Enhancements to PayNow could solidify its leading position in digital payments, ensuring better service for consumers and businesses alike.

§ 02 Key Developments

• As of December 2025, PayNow had approximately 11 million proxy registrations, covering over 90% of Singapore’s adult population and around 350,000 business entities.
• In 2025, PayNow processed about S$154 billion in consumer payment value and S$147 billion in business payment value, alongside S$371 million across live cross-border links to India’s UPI, Malaysia’s DuitNow, and Thailand’s PromptPay.
• MAS and ABS plan to pilot interoperability between PayNow and NETS QR by the end of 2026, allowing payments at any merchant regardless of the payment scheme used.

§ 03 Strategic Context

• PayNow leads in digital payment adoption in Singapore, with a significant market share compared to other card-led markets like Australia and the UK, where digital wallets hold only 37% of wallet share.
• The PayNow Generation 2 study reflects a proactive approach to addressing consumer frustrations with current payment processes and improving operational efficiency in business transactions.

§ 04 Strategic Implications

• Immediate implications include the potential for improved consumer experience through deep-linking features and QR code interoperability, which could shift payment preferences away from traditional card methods.
• Long-term implications involve enhancing PayNow's capacity for higher-value transactions and structured data integration, making it more appealing for businesses and government payments.

§ 05 Risks & Constraints

• Regulatory risks may arise from the implementation of new features, such as agentic commerce, which requires careful management of authorizations and liabilities.
• Technical challenges associated with ensuring interoperability between different payment schemes could hinder the rollout of these enhancements.

§ 06 Watchlist / Forward Signals

• MAS and ABS are inviting feedback on the Phase 1 findings until 15 August 2026, which will inform the development of Phase 2.
• The success of the QR code interoperability pilot by the end of 2026 will be a critical indicator of PayNow's evolution and user acceptance of the new features.