Gen Z driving digital payments explosion in Singapore

Research by global small business platform Xero reveals that Singapore’s younger consumers are leading the shift to digital payments. In contrast, more than half of small businesses in the country do not currently provide cash payment options. The report, ‘I want to pay that way’, reveals a growing trend towards digital payments in Singapore, driven by strong government support and initiatives to build a digitally connected society.

Over three-quarters of Singapore consumers (76%) use credit or debit cards for payments. More than half of the population uses the funds transfer service PayNow (55%) or bank transfers (55%). About a fifth also uses e-wallet service GrabPay (22%) and buy now, pay later platforms (21%). Reflecting changing perspectives, the research showed that 30% of Singapore consumers only carry their mobile phones to pay when shopping, notably higher than the global average of 21%.

Younger generations are leading the way, quickly embracing new digital payment methods. PayNow is the preferred digital payment method for 68% of Gen Z consumers in Singapore, with about a third (29%) also using GrabPay.

The findings also highlight that failing to meet consumer payment preferences can directly impact customer retention and revenue. Approximately 18% of Singapore consumers indicated they would visit another business that accepts more payment options if a business didn’t offer at least one of their preferred payment methods.

Nearly nine in ten (87%) small businesses in Singapore say they have benefited from adopting new payment methods in the last six to twelve months. Key reported advantages include reduced time to be paid (43%), retaining more business (42%), and increased sales (41%).

Many small businesses in Singapore are optimistic about future or emerging payment methods. These include biometric authentication methods such as fingerprints or facial scanning (36%), bartering marketplaces/apps (33%) and augmented reality (33%). About a third (31%) have expressed excitement about implantable payment chips, a much higher figure than small businesses in countries like Australia (7%) and New Zealand (9%) included in the research.

“Singapore is at the forefront of building a robust digital payment landscape, aligning with its broader digital economy and Smart Nation goals,” said Koren Wines, Managing Director, Asia, Xero. “While a supportive regulatory environment and complementary initiatives are driving digital payment development and adoption among Singapore’s small businesses and consumers, targeted support to help small businesses adopt more payment options will also be crucial.”

 

GTreasury partners with Necto to expand global bank API suite

GTreasury has announced a partnership with Necto, a multi-bank API aggregator. The partnership expands the library of bank APIs available to GTreasury’s ClearConnect Gateway, an out-of-the-box global bank connectivity suite. The solution enables customers to leverage seamless banking data connectivity and reporting from new banks across the APAC and EMEA regions.

The API suite adds instant data connectivity into regional banks across APAC (including, but not limited to, ANZ, BNZ, DBS, ICBC, OCBC, and Standard Chartered), and EMEA (including, but not limited to, Rabobank, Banking Circle, BNP Paribas, Barclays, Santander, and ABN AMRO). 

Treasury teams and CFOs at organisations that are corporate customers of these banks can now benefit from the immediate availability of accurate and up-to-date mission-critical financial data, including access to current-day balance and transaction reporting and prior-day balance and reporting.

In a statement, GTreasury said that partnering with Necto adds to its growing list of ClearConnect Gateway data connectivity integrations for balance and transaction reporting, which also includes Bank of America, Citibank, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, PNC, U.S. Bank, and Wells Fargo.

“As a multi-bank API aggregator, Necto enables us to rapidly expand the reach of our ClearConnect Gateway API suite and empower treasury and finance teams with the banking data they need, when they need it,” said Victoria Blake, Chief Product Officer, GTreasury. “The solution is set up to have any bank, anywhere, live in a matter of days.”

 

Network International to offer payment solutions to Citi’s corporate clients

Network International (Network), an enabler of digital commerce in the Middle East and Africa, has announced a strategic referral arrangement with Citi. The arrangement aims to enhance the payment experiences for Citi’s corporate clients by leveraging Network’s omnichannel payment solutions.

The referral arrangement will let Citi offer its corporate clients payment management solutions including enhanced transaction efficiency, increased security, and seamless payment integration capabilities, helping them digitise and streamline their payment processes.

“As clients’ business models evolve and the need for digital collections solutions take centre stage, this collaboration perfectly aligns with our strategy to provide solutions to our clients,” said Vivek Vaidyanathan, Treasury & Trade Solutions Head, Middle East & Pakistan, Citi. “By collaborating with a leading regional player such as Network International, we are able to offer seamless market-relevant payment experiences thereby helping business to optimise their marketplace payments, business-to-business and direct-to-consumer transaction flows.”

 

New solution to protect Kenyan coffee farmers from climate risk

Liberty Mutual Reinsurance (LM Re), Sprout and Britam have launched a partnership to provide a parametric solution to protect Kenyan coffee farmers from climate risk. The product, which stems from collaborative efforts at the Lloyd’s Lab Launchpad Pitch, provides swift payouts triggered by specific weather events, offering immediate financial support to mitigate the risks of crop failures. 

Sprout uses satellite data and machine learning to assess historical weather patterns, empowering farmers to maintain productivity despite climate challenges. LM Re has supported the solution since its inception, through shaping the structure of the coverage and the capacity allocation.

The product is designed to protect against climate risks and address the specific needs of coffee growers. It incorporates real-time advisory services to assist farmers in adapting their farming practices based on weather forecasts, thereby enhancing their resilience.

The scheme, in which global coffee buyers fund coverage premium, aims to support local operations while minimising operating costs for Kenyan farmers. This approach ensures farmers can quickly recover from adverse conditions, maintaining their livelihoods. By keeping financial resources within Kenya and supporting local agriculture, the new insurance product aims to bolster the local economy and promote sustainable farming practices, offering a crucial safety net for farmers facing increasing climate variability.

 

Sage Intacct expands AI-driven AP tool to support businesses globally

Sage Intacct has debuted enhancements and updates for customers globally to streamline financial operations and enhance security worldwide. The platform is rolling out AP Automation globally as part of this major expansion. 

In the US, businesses are already processing over 10,000 bills per month using this tool, which utilises AI to halve the time taken for accounts payable processes while saving organisations over US$100,000 per year. AP Automation streamlines financial workflows by automatically creating draft bills from uploaded documents, promptly identifying issues such as duplicates, and significantly reducing data entry efforts and costs. 

Global functionality in Sage Intacct product release 3 2024 includes an enhanced Interactive Custom Report Writer (ICRW), which provides customers with deeper, actionable insights and facilitates compliance and operational efficiency. Users worldwide can also expect enhanced email delivery and insights, leveraging DomainKeys Identified Mail (DKIM) to ensure emails reach their intended recipients securely and efficiently.

Some of the upgrades are country-specific. In the US, for example, employees can now email receipts directly from any device. AI and machine learning enhance coding accuracy and adapt to user modifications for future submissions, which should simplify the expense reporting process. In France, Sage Intacct Financials has achieved NF 203 certification from Infocert, meeting national standards of data integrity and compliance required by French law. For German users, Sage Intacct now supports the DATEV file format, which should simplify tax reporting and the preparation of financial statements. In Australia, users can now export Taxable Payments Annual Reports (TPAR) files, eliminating the need for manual data reformatting.