Singapore’s position as a global financial nexus is not merely a product of geography but of deliberate architectural design. For decades, local businesses operated primarily within a domestic scope, relying on the familiar banking infrastructure of DBS, OCBC, and UOB. Today, the landscape has shifted. A fintech startup in the CBD can bill clients in San Francisco, a logistics firm in Changi can manage supply chains for Shenzhen, and a hospitality group in Sentosa can book guests from Mumbai directly.
However, transitioning from a local champion to a global player requires more than just shipping products overseas. It requires a fundamental restructuring of how money flows into your business. Accepting international payments involves navigating Monetary Authority of Singapore (MAS) regulations, specifically the Payment Services Act (PSA), managing Goods and Services Tax (GST) compliance for “International Services,” and overcoming the hidden friction of cross-border commerce.
This guide provides a strategic framework for Singaporean merchants, founders, and finance teams to operationalize global revenue streams effectively and compliantly.
Key Takeaways
- Compliance is Mandatory: Singapore moved from entity-based to activity-based regulation under the Payment Services Act. Merchants must ensure their partners are licensed Major Payment Institutions (MPI) to safeguard funds.
- The “Asian QR” Network is Critical: Singapore is the node for the world’s first multilateral real-time payment linkages. With PayNow linked to India’s UPI, Thailand’s PromptPay, and Malaysia’s DuitNow, merchants can accept instant payments from regional neighbors, bypassing expensive card networks.
- GST Strategy Matters: Exporting goods or services often qualifies for 0% GST (Zero-rating), but strict documentation is required to prove the “International Service” status under Section 21(3) of the GST Act.
- Localize or Lose Sales: While Visa/Mastercard work for Westerners, Chinese and Southeast Asian buyers expect digital wallets (Alipay, WeChat Pay, GrabPay). Failing to offer these results in cart abandonment.
How to Accept International Payments (For Business) in Singapore
Expanding your business globally means upgrading your financial infrastructure. You cannot rely solely on the NETS or PayNow Corporate systems used for local Singaporean customers. Here are the primary methods for businesses to accept funds from abroad, ranked by modern efficiency.
1. Traditional Banking (Wire Transfers)
For decades, this was the only way to do business globally. It involves a customer initiating a Telegraphic Transfer (TT) via the SWIFT network to your Singapore corporate bank account.
- How it works: You provide your SWIFT code and Account number to the client. The funds move through a chain of correspondent banks before arriving in your DBS, UOB, or OCBC account.
- When to use it: This method is still standard for B2B transactions involving very large sums (e.g., bulk commodity trading) where the security of a bank-to-bank transfer is preferred over speed.
- The Downside: It is slow, often taking 2-5 days to settle. It is also opaque and expensive; “lifting fees” are deducted by every bank in the chain, meaning you often receive less than you are invoiced.
2. PayPal
PayPal remains a significant trust signal for Western buyers who may be unfamiliar with a Singaporean brand.
- How it works: You set up a PayPal Business account and integrate it into your checkout. Customers pay using their PayPal balance or linked cards.
- When to use it: It is excellent as a secondary backup option. For brands selling to the US or Europe, seeing the PayPal logo gives customers confidence that their purchase is protected by buyer safeguards.
- The Downside: The cost is high. Transaction fees for cross-border sales can be significant, and the currency conversion rates offered are typically less favorable than market rates. It works well for low-volume, high-margin items but can erode profits on scale.
3. Payment Platforms
For serious e-commerce and scale, a dedicated payment platform is non-negotiable. This technology automates the collection of funds, manages fraud, and ensures a seamless customer experience.
Razorpay
Razorpay has established a strong presence in Singapore, positioning itself as a key infrastructure provider for the region. It focuses on solving the complex cross-border friction between South Asia and ASEAN.
- Why it stands out: Razorpay is a premier solution for the “India-Singapore Corridor.” Through its infrastructure, it enables Singaporean merchants to seamlessly accept payments from the massive Indian consumer base via UPI and cards, settling directly in SGD. This capability allows businesses to tap into India’s digital economy without the usual banking hurdles.
- Features: Beyond basic acceptance, Razorpay offers “Optimizer,” an AI-powered router that intelligently routes transactions across different payment rails to achieve the highest success rates. This reduces the technical decline rates often seen with international cards.
- Settlement: It offers streamlined settlement into Singapore bank accounts, providing robust reporting tools that help finance teams easily reconcile international income against local ledgers.
Braintree (A PayPal Service)
Braintree is a sophisticated global payments platform owned by PayPal, designed for companies that require a high degree of customization and global reach.
- Why it stands out: Braintree is the “developer’s choice.” It offers a robust API that allows you to build a completely custom checkout experience. Its primary strength lies in its ability to accept PayPal and cards through a single integration, unifying your revenue streams.
- Features: It includes advanced fraud protection tools and a “Vault” feature that securely stores customer card information, making it ideal for subscription businesses or apps requiring one-click purchasing. It also supports popular digital wallets like Apple Pay and Google Pay seamlessly.
- Consideration: While powerful, Braintree is often better suited for tech-forward companies with developer resources. It provides enterprise-grade reliability and is widely used by large-scale platforms that need to process high volumes of international credit card transactions with high approval rates.
NETS / Bank Solutions (DBS Max, OCBC OneCollect)
The local banking giants and the national payment network, NETS, offer their own digital merchant solutions.
- Positioning: These are reliable options for businesses that prioritize direct integration with their business bank accounts.
- Why it stands out: Solutions like OCBC OneCollect and DBS Max are particularly strong for offline retail and F&B. They have integrated cross-border QR capabilities, allowing merchants to accept payments from apps like Alipay, WeChat Pay, and UnionPay by generating a single dynamic QR code.
4. Multi-Currency Accounts (FCA)
While not a payment gateway, this is a critical tool for accepting payments without losing money.
- How it works: You open a Foreign Currency Account (FCA) with a local bank or a digital provider. This allows you to receive USD, EUR, or GBP directly without converting it to Singapore Dollars immediately.
- The Benefit: This provides a “natural hedge.” If you earn revenue in USD, you can keep it in USD to pay for overseas expenses (like server costs or suppliers), avoiding the double conversion loss.
Essential Documents for Business Onboarding
To activate any of the international payment methods above, you must pass the “Know Your Business” (KYB) checks mandated by the Monetary Authority of Singapore (MAS).
For Private Limited Companies (Pte Ltd):
- ACRA Business Profile (BizFile): A recent copy (usually <3 months old) showing the company’s UEN, registered address, and officers.
- Constitution: The company’s governing document (formerly Memorandum & Articles of Association).
- Identity Documents: NRIC (for Singaporeans/PRs) or Passport (for foreigners) of all directors and beneficial owners (shareholders with >25% stake).
- Board Resolution: A formal resolution authorizing the opening of the merchant account and appointing authorized signatories.
- Proof of Address: Recent utility bill or bank statement if the operating address differs from the registered address.
For Sole Proprietorships:
- ACRA Business Profile: Showing the owner’s details.
- NRIC/Passport: Of the business owner.
- Proof of Residential Address: Recent utility bill or bank statement.
Consumer Payment Preferences (For Consumers)
When international customers land on your site, they expect to pay using methods they trust. Limiting them to Singapore-specific options like PayNow will result in lost sales.
1. International Credit and Debit Cards
The Visa and Mastercard networks remain the universal language of global commerce.
- Consumer View: For a shopper in London or Tokyo, entering their card details is standard. They expect this process to be secure, often protected by 3D Secure (OTP) technology.
- Merchant Action: Ensure your gateway supports “Cross-Border Acquiring” so these cards are accepted seamlessly.
2. Digital Wallets (AliPay, WeChat Pay, GrabPay)
In Asia, digital wallets have leapfrogged cards.
- Consumer View: A tourist from China prefers Alipay; a visitor from Southeast Asia prefers GrabPay. These methods are faster for them and avoid the high forex fees on their credit cards.
- Merchant Action: Integrating these methods signals that you are a modern, global-friendly business. It builds immediate trust and dramatically increases conversion rates for Asian demographics.
3. Real-Time Payment Linkages (UPI/PromptPay)
Singapore’s bilateral linkages allow for direct bank-to-bank payments.
- Consumer View: An Indian tourist can use their Google Pay India or BHIM app to scan a Singaporean merchant’s NETS or PayNow QR code. A Thai tourist can do the same with their PromptPay app.
- Merchant Action: Display the SGQR code prominently and ensure your payment provider supports these specific cross-border schemes.
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Conclusion
The barriers to global trade for Singaporean businesses have never been lower. The days of expensive letters of credit and complex bank wires are fading, replaced by APIs, interoperable QR codes, and digital wallets.
However, success requires a shift in mindset. It requires moving beyond a PayNow-only mentality and embracing a diverse payment stack that includes international cards and emerging real-time rails such as UPI. It demands a proactive approach to currency management to protect your margins. By building a robust, compliant, and user-friendly payment infrastructure today, Singaporean merchants can confidently open their digital doors to the world.
Frequently Asked Questions (FAQs)
1. Can international customers use PayNow to pay me?
Generally, no. PayNow is a domestic Singaporean system. However, exceptions exist due to specific bilateral linkages: customers with Thai banking apps (PromptPay), Indian UPI apps, and Malaysian DuitNow apps can scan your PayNow/SGQR code to pay. Customers from the US or Europe cannot use PayNow.
2. What is “Zero-Rating” for GST on international services?
If you provide services to overseas clients, you may be able to charge 0% GST instead of the standard 9%. To qualify under Section 21(3) of the GST Act, the service must be contractually provided to an overseas person, and the direct benefit must flow to a person outside Singapore.
3. Is Razorpay available for Singapore-incorporated companies?
Yes, Razorpay operates in Singapore. It allows Singapore entities to accept payments via international cards and specific regional methods like UPI, settling the funds into your local Singapore corporate bank account.
4. Why do I need to provide my Constitution and Board Resolution?
Payment processing is a regulated financial activity in Singapore. Under the Payment Services Act, payment providers must perform rigorous “Know Your Business” (KYB) checks to verify the legal existence of your company and the authorization of the people running it to prevent money laundering
5. How do I avoid high FX fees when accepting USD?
The best strategy is to open a Multi-Currency Account (FCA). Connect this account to your payment gateway so that USD sales settle directly into your USD balance without conversion. You can then use these funds to pay USD expenses or convert them when exchange rates are favorable.
6. What are the limits for accepting payments via UPI or PromptPay in Singapore?
While these linkages allow for instant payments, they are often subject to daily transaction limits set by the customer’s home bank or the bilateral agreement (typically around SGD 1,000 to SGD 3,000 equivalent). They are ideal for retail and small e-commerce transactions but may not be suitable for high-value B2B contracts.
