In February this year, PayPal announced that it will be stopping its Personal Payments services in Singapore due to its commitment to “complying with all applicable laws and regulations in every jurisdiction that we do business in.” Today, the Development Bank of Singapore (DBS) has announced that it will partner with Visa to introduce Visa Personal Payments (VPP). There are currently over 80 send-side VPP programs by leading financial institutions in over 20 countries.
The service is a “faster, secure and more convenient way to send money from your bank account to any Visa cardholder around the world.” The new service is accessible to all DBS and POSB customers in Singapore, and all they need is the the recipient’s name and his or her 16-digit Visa card number. While PayPal’s stoppage of its Personal Payments services only affects users in Singapore, the DBS-Visa partnership will see DBS/POSB customers being able to send money to over 1 billion eligible Visa cards globally. According to Visa, this includes fund transfers in near real-time (within minutes) to over 200 million Visa Debit, Visa Credit and Visa Prepaid cards.
“As part of our efforts in placing our customers at the heart of the banking experience, we continuously innovate to better serve them. With this service, we are offering customers a simple, affordable and convenient solution to cater to their cross-border funds transfer needs. We will continue to focus on delivering greater value and introduce user-friendly services that are relevant to our customers’ lifestyle preferences,” said Anthony Seow, Head of Cards and Unsecured Loans at DBS Bank, Singapore in the press release.
More about how Visa Personal Payments works:
- Transfers to a Visa debit card occur as a deposit to the underlying checking or savings account, transfers to an eligible Visa prepaid card occur as a top-up to the balance, and transfers to a Visa credit card will be applied to the outstanding balance with any surplus funds held in credit. For a limited period of time, customers can also enjoy low handling fees starting from S$2.50 and competitive foreign exchange rates.
- In Asia Pacific, Middle-East, Africa and Eastern Europe, the VPP platform has had strong year-on-year growth of 89 percent (in the period September 2012 compared with September 2011) reflecting consumer demand for convenient and fast P2P services.
- P2P payments to developing countries are projected to grow by 7.9 percent in 2013, 10.1 percent in 2014 and 10.7 percent in 2015 to reach US$534 billion in 2015. This is a 33.5 percent rise from the US$400 billion figured recorded in 2012. This growth is likely to be led by markets like India and China, which recorded recipient figures of US$70 billion and US$66 billion respectively in 2012.
- There are over 80 send-side VPP programs by leading financial institutions in over 20 countries including Australia, China, Taiwan, Hong Kong, India, Indonesia, Malaysia, Russia, Ukraine, U.S., U.A.E. and Kenya.
DBS currently has over 1.9 million internet banking customers and 600,000 mobile banking users in Singapore.
Developing countries to receive over $400 billion in remittances in 2012, says World Bank report, World Bank press release, Nov 20, 2012.
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