Singapore Pools absorbs all e-payment transaction fees, ends 10-cent PayNow surcharge

Singapore Pools announced on 11 November that it will absorb transaction fees for all e-payment options, ending a longstanding 10-cent surcharge on PayNow transactions. This change is aimed at enhancing customer convenience and aligns with recent regulatory expectations.

The decision affects not only PayNow but also other electronic payment methods such as FAST and Nets. The operator added that it is working with partners to absorb fees for eNETS as well. However, due to the need for substantial system and operational changes, eNETS payments will be suspended until further notice.

In a statement, the country's sole legal sports betting, lottery, and horse racing operator said the shift was made following a comprehensive review with the Association of Banks in Singapore (ABS), its partner banks, and Nets.

Singapore Pools explained that the review covered both operational arrangements and existing contracts. These contracts had previously allowed the recovery of transaction processing costs from customers, including the now-removed 10-cent PayNow surcharge.

The company clarified on its website that the fee had applied to all PayNow-related transactions, including bet placements and prize claims.

Responding to media queries, a Singapore Pools spokeswoman said: “All applicable fees are clearly disclosed upfront to customers before they proceed with a transaction, both through the Singapore Pools website and app.”

She added that the company had been working with its banking partners to reassess these charges in compliance with ABS rules, without compromising transaction security or reliability.

This change comes months after Deputy Prime Minister Gan Kim Yong addressed the issue in Parliament.

In October, he confirmed that ABS had been engaging with Singapore Pools to address its surcharging practice. Gan, who is also Minister for Trade and Industry and chairman of the Monetary Authority of Singapore, said at the time that major retail banks do not charge merchants for basic PayNow services.

“A minimal fee may be charged only if the merchant uses additional services, such as receiving notifications for funds received,” he said.

The ABS introduced new rules in March 2024 prohibiting surcharges on PayNow payments. Despite this, Singapore Pools had continued to apply the fee based on legacy contractual agreements.

When approached by The Straits Times in October 2024, the company would not disclose how much had been collected from the surcharge or whether refunds would be issued. It only stated that the practice pre-dated the ABS regulations.

Singapore Pools is a subsidiary of the Tote Board, a statutory board under the Ministry of Finance. It reported a turnover of S$12.7 billion in the 2024/2025 financial year, up from S$12.2 billion in the previous year.

The operator reaffirmed its broader mission in its 11 November statement: “Singapore Pools remains fully committed to managing every dollar prudently while fulfilling its mission of countering illegal gambling and channelling surplus funds for the benefit of Singapore and Singaporeans.”