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A new public-private initiative is set to help smooth the transition away from cheques, via new payment solutions and an extended deadline for the cessation of cheque use in the city-state.
The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have announced plans to launch two new Electronic Deferred Payment (EDP) solutions in mid-2025.
These developments are part of ongoing efforts to transition businesses and individuals away from cheques and toward a more seamless digital payment ecosystem.
In tandem, the deadline for the cessation of corporate cheque processing has been extended to December 31, 2026, granting businesses additional time to adapt.
The upcoming EDP and EDP+ solutions aim to provide greater convenience and certainty in payments, addressing use cases traditionally reliant on post-dated cheques.
Developed in collaboration with the country’s Domestic Systemically Important Banks (D-SIBs), the solutions will integrate with existing e-payment infrastructure in Singapore, including PayNow.
They aim to ensure ease of use via digital banking platforms, and the MAS has encouraged users to embrace these alternatives once they are launched.
Initially set for 2025, the cessation of corporate cheques has been deferred by a year to accommodate the transition.
Banks will stop issuing new corporate cheque books by the end of 2025, although cheque processing will continue until December 31, 2026. Corporates are advised to submit cheques for clearing well before the cut-off date.
The MAS said that the extension reflects feedback from businesses seeking more time to familiarise themselves with new and existing e-payment systems.
Retail cheques, cashier’s orders and USD cheques will remain available for individuals and corporate users. Retail banks have also confirmed the continuation of waived cheque fees for seniors, ensuring inclusivity in the transition.
To further refine the transition roadmap, the MAS has issued a public consultation paper detailing the plans to sunset corporate cheques and strategies for encouraging the adoption of e-payments.
Stakeholders are invited to provide feedback to this consultation by January 17, 2025.
