Introduction: Navigating Singapore’s Payment “Rails”
Singapore has one of the most advanced digital payment ecosystems in the world. For business owners, the availability of multiple fund transfer methods, FAST, PayNow, and GIRO, provides incredible flexibility. However, each system serves a distinct purpose, operates at a different speed, and carries its own cost structure.
Choosing the wrong method can lead to unnecessary processing fees or, more critically, cash flow delays. Understanding the nuances between these “payment rails” is essential for optimizing your financial operations.
This guide provides a definitive comparison of FAST, PayNow, and GIRO, explaining how they work together and when your business should use each one.
Key Takeaways
- FAST is the Foundation: A real-time interbank transfer system for amounts up to S$200,000.
- PayNow is the Interface: A service that sits on top of the FAST network, allowing transfers via proxies like UENs or mobile numbers.
- GIRO is the Batch Processor: Ideal for high-volume, recurring, or non-urgent payments like payroll and utilities.
- Speed vs. Cost: FAST and PayNow are instant but can be more expensive per transaction; GIRO takes 1–3 days but is the most cost-effective for bulk payouts.
- Unified Management: A modern payment platform can integrate all three, providing a single dashboard for reconciliation.
1. FAST (Fast and Secure Transfers)
FAST is the underlying real-time electronic funds transfer service that enables instant SGD transfers between participating banks and non-bank financial institutions (NFIs).
- How it works: You enter the recipient’s bank name and account number. The funds move instantly.
- Speed: Instant (within seconds), available 24/7, 365 days a year.
- Limit: Generally up to S$200,000 per transaction.
- Best for: Urgent one-off payments to suppliers or vendors where you have their full bank details.
2. PayNow
PayNow is a peer-to-peer and business-to-business (B2B) service that uses the FAST “rails” but replaces the bank account number with an easy-to-remember proxy.
- How it works: For businesses, the proxy is typically your Unique Entity Number (UEN). Customers scan a QR code or enter your UEN to pay.
- Speed: Instant (because it uses FAST).
- Limit: Dependent on individual bank settings, often aligned with FAST limits.
- Best for: E-commerce checkouts, retail point-of-sale, and invoicing, where you want to provide a frictionless experience for the customer.
3. GIRO (General Interbank Recurring Order)
GIRO is a legacy system designed for high-volume, automated batch processing. It is not real-time.
- How it works: Payments are processed in “batches” at specific times during the day. It supports both Direct Credit (payouts) and Direct Debit (collections).
- Speed: 1 to 3 business days. It does not operate on weekends or public holidays.
- Limit: Usually no technical limit, but restricted by your bank’s daily corporate limit.
- Best for: Monthly payroll, recurring subscription collections, and paying tax to IRAS or making CPF contributions.
Direct Comparison Table
| Feature | FAST | PayNow | GIRO |
| Processing Speed | Instant (Seconds) | Instant (Seconds) | 1 – 3 Business Days |
| Availability | 24/7, 365 Days | 24/7, 365 Days | Business Days / Banking Hours |
| Identifier Used | Bank & Account Number | UEN / Mobile / NRIC | Bank & Account Number |
| Primary Use Case | Urgent Vendor Payments | Customer Checkout / B2C | Payroll / Recurring Bills |
| Setup Effort | Low | Low | High (requires mandate) |
| Relative Cost | Moderate | Moderate | Lowest |
The Strategic Choice: Which One Should You Use?
Use FAST/PayNow when:
- Time is critical: You need to confirm a shipment immediately upon payment.
- Customer experience is a priority: You want to reduce friction at an online checkout.
- Low-volume, high-value: You are making a specific payment that requires immediate confirmation.
Use GIRO when:
- Efficiency is a priority: You are paying 50 employees at once.
- Predictability is key: You want to collect monthly fees from customers on the 1st of every month automatically.
- Margins are thin: You need the absolute lowest transaction cost for thousands of small payments.
Digital Evolution: eGIRO and Virtual Accounts
The lines between these systems are blurring thanks to technology:
- eGIRO: Has shortened the GIRO mandate setup from 3 weeks to minutes, making it more competitive for modern SaaS businesses.
- Virtual Accounts: These are unique numbers assigned to customers that can accept FAST, PayNow, or GIRO payments while providing automated reconciliation.
Did You Know?
Because PayNow uses the FAST infrastructure, if the FAST network experiences downtime (rarely), PayNow services will also be affected. For businesses, this is why having a redundant payment strategy that includes cards and digital wallets is vital for 100% uptime.
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Conclusion: A Balanced Payment Strategy
In the competitive Singapore market, there is no single “best” payment method. The most successful businesses utilize a hybrid approach: PayNow for instant customer collections, FAST for urgent vendor settlements, and GIRO for the stable, cost-effective automation of recurring overheads. By integrating these methods through a unified payment platform, you eliminate manual reconciliation and ensure your financial speed matches the speed of your business growth.
Frequently Asked Questions (FAQs)
1. Is PayNow more secure than FAST?
Both are equally secure as they operate within the regulated Singapore interbank network. PayNow is often considered “safer” for the sender simply because it reduces the risk of typing a wrong bank account number—instead, you verify the recipient’s name linked to the UEN or mobile number.
2. Can I use FAST for international payments?
No. FAST is strictly for Singapore Dollar (SGD) transfers between participating institutions in Singapore. For international needs, you would use SWIFT or a specialized cross-border payment provider.
3. Why did my GIRO payment fail?
GIRO payments often fail due to insufficient funds in the account at the time of batch processing. Unlike FAST, which checks for funds instantly, GIRO may attempt a deduction that gets rejected by the bank, often resulting in a small “failed GIRO” fee.
4. Do I need a separate UEN for PayNow?
No. Your business’s existing UEN (Unique Entity Number) issued by ACRA serves as your PayNow identifier. You simply need to register it with your bank to link it to your corporate account.
