DBS has introduced a solution that is designed to transform the largely cash and paper-based business-to-business (B2B) payments and collections landscape for businesses in Singapore. The QR-code based solution supports Singapore’s aim of eliminating cheques by 2025 and going cashless.

The B2B payments and collections solution was developed after close to 20 digital workshops with food and beverage (F&B) operators to map their payments journey and pain points. The workshops also uncovered that on average, close to nine in 10 B2B payments in the F&B industry are still cash-based or done through bank transfers. The solution, which facilitates cashless and faster payments, is an end-to-end QR collection enabled platform that enables instant payments with automated accounts reconciliation functionalities in the backend.

Customers can also consolidate multiple invoices into one QR-code based transaction. They also have the flexibility to make full or partial payments for one or multiple invoices, and in turn suppliers now have the option of enhancing credit terms for each invoice instantly. To bring customers greater convenience, suppliers can also send a QR code requesting for payment to their customers who are not on-hand to receive the goods in-person.

SG5, the main distributor for Asia Pacific Breweries Singapore, is one of the first F&B operators to pilot the solution. The company, a wholesale distributor of beer and stout supplies about 5,600 F&B retailers from coffee shops to large chains such as Huber’s Butchery. Through this solution, SG5 believes the company will save up to 3,300 staff hours a month.

“Many SMEs we speak to want to realise productivity gains by becoming more digital but they don’t have the expertise or infrastructure to do so,” said Joyce Tee, group head of SME Banking at DBS Bank. “By understanding their pain points and then laying the foundation for enhanced payments capabilities one sector at a time, DBS aims to lead the way in digitalising and streamlining the payments landscape in Singapore. Our aim is to enable our SMEs’ time-strapped workforce to be able to spend more time serving their customers and exploring new business opportunities.”

SG5 CEO Alvin Chua is looking forward to utilising the 3,300 hours saved on accounting and administrative tasks every month. “On average, our frontline staff spend around 3.5 hours every day traveling to different parts of the island to collect cash and cheque payments,” Chua said. “With the new payments solution and precious man-hours saved, I hope to be able to upskill my staff so that we can work together to bring the business to new heights. It will also be a boon to our cashflow as we will be able to receive payments instantly upon delivery of goods.”

DBS’ B2B payments and collections solution currently facilitates payments through PayNow in Singapore. Through a series of digital workshops with clients from different industries, DBS plans to introduce the solution to the wider F&B ecosystem, logistics companies and import/export merchants later this year.