SG’s PayNow and India’s UPI link-up: a game changer or just hype?

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Hello, 

Nowadays, I hardly ever bring my wallet when I go out. While I can’t always use credit cards or e-wallets like GrabPay, most shops accept PayNow, the peer-to-peer funds transfer service developed by the Association of Banks in Singapore. 

Last month, a tie-up between PayNow and its India-based equivalent United Payments Interface (UPI) was announced by the governments of both countries. 

In this week’s big story, my colleague Melissa examines the implications of this linkage in greater detail. She considers how much of a game changer this really is, given that fintech players like Wise already allow users to send money between Singapore and India using their respective PayNow and UPI IDs. 

Still, there’s potential for a big disruption. For example, Paytm was the dominant mobile wallet in India, but it was later surpassed by PhonePe and Google Pay in terms of user base after both got a headstart in adopting UPI. 

On the topic of big disruptions, this week’s Hot Take looks at the fallout from the Silicon Valley Bank (SVB) collapse. Given its limited direct exposure to SVB, Southeast Asia seems like a safe harbor in the current storm. 

However, the region’s startups and tech companies should learn from this event, as they may have to deal with the indirect consequences in the months to come. 

— Simon

THE BIG STORY

Winners and losers of SG and India’s novel PayNow-UPI linkage

Image credit: Timmy Loen

The real-time linkage may increase the convenience of cross-border payments but it’s less revolutionary than you’d think.

THE HOT TAKE

SEA insulated from SVB, Credit Suisse fallout, for now

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