Corporate Payment Solutions for SMEs: Helping You Transit from Cheques to Digital Payments

Bid farewell to cheques. In this session, leaders from established financial institutions take to the stage to share how they are helping Singapore move away from physical cheques and towards digital payment solutions.

1. Electronic Deferred Payment (EDP) System, presented by Ang Li Khim, DBS Bank and the ABS Sunsetting Cheques Workgroup EDP Tech Lead

The EDP is a digital payment system set to replace corporate cheques in Singapore by 2025. It serves as an alternative to traditional cheques, post-dated payments, and cashier's orders, offering a fully digital, secure, and transparent payment process.

• Key features include real-time notifications, deferred payment option, easy accessibility and PayNow Proxy Lookup.
• Ang highlighted how the EDP will help to streamline payment processes and ensure enhanced transparency and improved security.
• The EDP will coexist with existing payment systems like FAST, PayNow, and GIRO, but will cater to specific needs like deferred payments and presentment functionality.

2. UOB's approach to digital payments for SMEs, presented by Paul Kan of United Overseas Bank

UOB emphasises integrating digital payments with broader business workflows to improve overall efficiency and support digital adoption.

• Comprehensive digital tools: UOB provides a platform where business owners can manage multiple aspects of their business from their online banking portal or mobile app. Businesses can consolidate accounts across different countries, access cash management services, and make cross-border payments seamlessly.
• Automated alerts and recommendations: The app offers real-time alerts for cash flow and trade transactions, notifying businesses about potential issues or opportunities. Personalised recommendations can then be provided.
• Integration with backend systems: UOB’s platform allows integration with backend systems such as accounting and HR, offering a holistic view of business operations.

3. Mastercard reimagines SME banking, presented by Sapan Shah, Mastercard

MasterCard's banking super app enables SMEs to handle their day-to-day business operations, from managing inventory to payments and loans, all in one place.

• Real-time business management: The app allows SMEs to manage bookings and check inventory levels in real time, provides instant access to credit and simplifies supplier payments.
• Innovative payment collection: With the app, SMEs can collect payments via their phone as opposed to traditional terminals. They can also pay employees directly through the app.
• Loan applications and credit management: The super app enables SMEs to check their credit score, apply for loans, and track their loan applications in real time.

4. Corporate payment solutions for SMEs, presented by Alan Hwong, DBS Bank

DBS simplifies the digital journey for SMEs by offering tools to manage expenditure, collections, and payments to suppliers globally.

• Day-to-day expenditure: The DBS Business Advanced Debit Card allows payments in over 200 currencies. Features include setting spending limits, monitoring transactions, locking in FX rates, cashback, and corporate insurance.
• Collecting payments from customers: DBS' MAX is a solution for SMEs to collect payments easily. There are no setup fees and allows for immediate ability to collect payments from customers. Online integration is also available.
• Paying suppliers globally: DBS GlobeSend sends payments to suppliers who do not accept cards, supporting over 42 currencies, with 19 available for same-day transactions.

5. Visa's commercial and money movement solutions, presented by Roy Choudhury, Visa

Visa aims to transform the way businesses pay and get paid, focusing on the commercial and money movement ecosystem. They focus on building scalable, adaptable solutions that cater to evolving business needs, particularly through virtual credentials and digital solutions.

• Embedded finance solutions: In the construction industry, Visa’s virtual credentials have been integrated into platforms like Doxa, enabling main contractors to pay subcontractors efficiently with controlled virtual cards.
• B2B integrated payments: A partnership with SAP to offer businesses an easy, integrated payment solution that connects Visa Commercial Cards with suppliers directly through existing ERP systems. This reduces complexity, enhances working capital, and boosts security.

6. OCBC's support for SMEs, Presented by Diana Ooi, OCBC

OCBC focusses on understanding the unique needs of different industries and offering tailored, practical solutions that help SMEs navigate the complexities of business operations.

• Case study 1: OCBC provide services like e-invoicing, a multi-currency account and FX Online (which allowed owners to manage foreign exchange fluctuations, set alerts for favorable rates, and book contracts) for a wine trading company to manage their suppliers, receivables, and cash flow across local and overseas suppliers.
• Case Study 2: OCBC's provided a digital procurement platform and OCBC Velocity (which enables bulk payroll updates easily) to help construction companies who often struggle with tight cashflow.

As Singapore continues on its journey to sunset cheques, the digital solutions presented by these FIs will play a vital role in helping SMEs adapt to the new digital age.

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