Introduction: The Workhorse of Singapore’s Payment Ecosystem
While instant payments like FAST and PayNow dominate the headlines for their speed, the backbone of recurring and bulk transactions in the Lion City remains GIRO.
Standing for General Interbank Recurring Order, GIRO is a paperless, automated system that allows for the transfer of funds between bank accounts. It is managed by the Association of Banks in Singapore (ABS) and is the preferred method for high-volume, predictable payments. For businesses, GIRO is the ultimate tool for “set-it-and-forget-it” financial management, ensuring that payroll is disbursed and bills are collected without manual intervention.
This guide provides a detailed look at how GIRO works, its two primary forms, and why it remains a critical component of any Singaporean business’s payment strategy.
Key Takeaways
- What It Is: An automated interbank payment system designed for recurring or bulk fund transfers between banks.
- Two Directions: Supports Direct Debit (collecting funds) and Direct Credit (making payments).
- Processing Speed: Transactions are not instant and typically take 1 to 3 business days to clear.
- eGIRO Upgrade: eGIRO is the digital evolution of GIRO, reducing mandate setup time from weeks to just minutes.
- Best Use Cases: Ideal for recurring bills, subscription services, payroll processing, and tax payments.
- Cost Efficiency: Generally, the most cost-effective option for bulk transactions when compared to credit cards or real-time transfer methods like FAST.
How GIRO Works: Two Primary Functions
Businesses typically interact with GIRO in two distinct ways depending on whether they are sending or receiving funds.
1. GIRO Direct Debit (Collecting Payments)
This allows your business to automatically “pull” funds from your customers’ bank accounts on a scheduled date. It is the gold standard for subscription-based models or utilities.
- Use Case: A gym charging monthly membership fees or a SaaS company collecting monthly subscriptions.
- Requirement: The customer must provide a GIRO Mandate (authorization) to allow your business to deduct funds.
2. GIRO Direct Credit (Making Payments)
This is used by businesses to “push” funds to employees or vendors in bulk.
- Use Case: Monthly payroll for a large workforce or distributing dividends to shareholders.
- Requirement: You simply need the recipient’s bank account details and a corporate banking portal that supports bulk GIRO uploads.
GIRO vs. FAST vs. PayNow: Choosing the Right Tool
Understanding the “processing speed” of Singapore’s payment rails is essential for cash flow management.
| Feature | GIRO | FAST | PayNow |
| Processing Speed | 1 – 3 Business Days | Instant (Seconds) | Instant (Seconds) |
| Transaction Type | Recurring / Bulk | One-off / Urgent | Consumer-friendly Alias |
| Automation | Highly Automated | Manual / API-driven | Manual / QR-driven |
| Cost | Lowest | Moderate | Low / Fixed |
| Best For | Payroll, monthly bills | Urgent vendor pay | B2C/Retail payments |
The Digital Revolution: What is eGIRO?
Historically, the biggest drawback of GIRO was the setup time. To authorize a Direct Debit, customers had to sign a physical paper form, which was mailed to the bank for verification—a process that could take 3 to 4 weeks.
eGIRO (Electronic GIRO) has solved this. Launched in 2021, eGIRO allows customers to set up a mandate via their internet banking portal or mobile app instantly.
- Paperless: No more physical forms or “wet” signatures.
- Instant Verification: The link between the business and the customer’s bank is established in minutes.
- Higher Conversion: For businesses, reducing the friction of setting up a payment plan means fewer dropped sign-ups and faster revenue collection.
4 Reasons Why Your Business Should Use GIRO
1. Unmatched Cost Efficiency
For high-volume transactions, GIRO is significantly cheaper than credit card processing. While cards might charge 2.5% , GIRO fees are typically measured in cents per transaction, protecting your margins for large-scale operations.
2. Predictable Cash Flow
With GIRO Direct Debit, you control the payment date. You don’t have to wait for the customer to remember to pay an invoice; the funds are pulled automatically on the due date, ensuring consistent liquidity.
3. Simplified Payroll
For businesses with more than a few employees, manual bank transfers are inefficient. Most Singaporean accounting software allows you to export a “GIRO file” that you can upload to your bank to pay your entire team in one single action.
4. Direct Link to Government Agencies
IRAS and the CPF Board primarily use GIRO for tax collections and social security contributions. Using GIRO for your corporate taxes ensures you never miss a deadline or incur late penalties.
Did You Know?
According to the Monetary Authority of Singapore (MAS), GIRO remains the dominant non-cash payment method by transaction volume for corporate entities. While PayNow continues to gain traction in the retail space, the large-scale volume of salary disbursements and insurance premium collections ensures that GIRO remains a core pillar of Singapore’s payment ecosystem.
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Conclusion: Balancing Speed and Stability
In 2026, a smart payment strategy uses the right tool for the right job. While FAST is perfect for “I need it now,” GIRO is perfect for “I need it every month.” By integrating GIRO (and specifically eGIRO) into your financial workflow, you reduce administrative overhead, lower transaction costs, and build a more stable foundation for your business’s recurring revenue.
Frequently Asked Questions (FAQs)
1. How long does a GIRO transfer take?
A GIRO transfer is not instant. It usually takes 2 to 3 business days to clear. If you submit a GIRO instruction on a Friday evening, the funds may only reach the recipient by Tuesday or Wednesday.
2. Is there a limit to how much I can send via GIRO?
While the GIRO system itself can handle very large amounts, individual banks often set “daily limits” for corporate accounts. Businesses can usually increase these limits through their bank’s relationship manager or online portal.
3. Can a customer cancel a GIRO mandate?
Yes. A customer can cancel their GIRO authorization at any time through their bank. Businesses are usually notified of the cancellation, at which point you would need to contact the customer for an alternative payment method.
4. What is the difference between a Standing Order and GIRO?
A Standing Order is a fixed amount sent from a customer to a business on a set date (controlled by the customer). A GIRO Direct Debit allows the business to vary the amount (within agreed limits) and the date, making it better for variable monthly bills like utilities.
