DBS has launched a QR-code based solution in Singapore with a goal to transform the predominantly cash and paper-based B2B payments and collections landscape for businesses in the country.
The new solution from the Singaporean bank is powered by its DBS RAPID API solution and the DBS MAX mobile-based QR payment collection solution. It is expected to address Singapore’s goal of improving productivity by removing cheques by 2025 and going cashless.
DBS said that the Singaporean food and beverage industry is the first to trial the QR-code based solution with beverage distributor SG5 and Huber’s Butchery joining the pilot programme.
DBS expects industry-wide roll out of the QR-code based solution by the end of 2020
By the end of 2020, the bank expects to introduce the B2B payment solution to the wide food and beverage ecosystem, logistics, and trading sectors. The bank expects the new solution to help in cashless and quicker B2B payments.
According to the Singaporean banking group, the new B2B payments and collections solution was developed after it conducted nearly 20 digital workshops with food and beverage companies to map their payments journey and also pain points.
Through the workshops, it was found that almost nine in 10 B2B payments in the food and beverage sector are still cash-based or done via bank transfers.
DBS claimed that the QR-code based solution is an end-to-end QR collection enabled platform that facilitates instant payments owing to its backend functionalities that enable automated reconciliation of accounts.
Using the QR-code based feature, customers can also consolidate various invoices into a single QR-code based transaction, said the bank. Apart from that, customers also have the flexibility to make complete or partial payments for one or multiple invoices, while suppliers get the option of instantly improving credit terms for each invoice.
DBS Bank SME banking group head Joyce Tee said: “Many SMEs we speak to want to realise productivity gains by becoming more digital but they don’t have the expertise or infrastructure to do so.
“By understanding their pain points and then laying the foundation for enhanced payments capabilities one sector at a time, DBS aims to lead the way in digitalising and streamlining the payments landscape in Singapore.
“Our aim is to enable our SMEs’ time-strapped workforce to be able to spend more time serving their customers and exploring new business opportunities.”
