PayNow recurring payments in Singapore: What works (2026 guide)

Key Takeaways:

• PayNow can’t collect subscriptions automatically today. MAS and ABS are studying recurring payment capabilities, but there’s no confirmed date.

• Your other options include card-on-file, bank standing instructions and GIRO direct debit.

• Airwallex helps you manage recurring payments and reduce payment risks. With Airwallex, you can automate subscription charges and improve payment performance.

PayNow recurring payments in Singapore remain a challenge for businesses that want to collect subscription fees automatically.

While PayNow makes one-off payments convenient, customers generally need to initiate each payment themselves, which can add work for your team and lead to missed payments.

This guide explains what PayNow can and can’t do for recurring payments today, how GIRO and eGIRO compare, and when card-on-file payments may be a better fit for subscription billing.

Can you use PayNow for recurring payments in Singapore?

No, PayNow doesn’t currently support automatic subscription collection.

Customers must approve each payment through their banking app, and businesses can’t reuse that approval to charge them again next month.

PayNow transfers money between bank accounts in real time. Payees are identified by a mobile number or Unique Entity Number (UEN), and each payment can be up to S$200,000.²

This makes PayNow useful for one-off payments such as invoices, deposits and top-ups, but less suited to subscriptions that need automatic collection.

Could PayNow support recurring payments in future?

Possibly, but there’s no confirmed implementation date yet.

On 25 June 2026, MAS and ABS identified preauthorised and recurring payments as an area for further consideration in their PayNow enhancement plans.¹ Phase 2 will assess the benefits, risks and safeguards before implementation decisions are made.²

For now, businesses should use other payment methods for automatic subscription collection.

5 payment methods for recurring payments in Singapore

PayNow is useful for one-off payments, but subscription businesses have other options depending on how much automation they need. Here’s a quick overview:

The key difference is who controls collection:

• PayNow and bank transfers require customers to initiate each payment

• Standing instructions automate transfers on the customer’s schedule

• GIRO and card-on-file let businesses collect payments under an agreed authorisation or payment setup.

The following sections explain how each method works, its limitations and what to consider before using it for subscription billing.

Method 1: PayNow

PayNow is widely used in Singapore, so it’s understandable that businesses might consider it for collecting subscription payments.

However, as mentioned previously, PayNow doesn’t support automatic recurring collection. PayNow is mostly useful for one-off invoice payments, deposits and top-ups.

Method 2: Bank transfers

Bank transfers let customers pay directly from their bank accounts, making them useful for settling invoices without using a card. However, customers must initiate each transfer themselves.

For subscription businesses, this means requesting payment every billing cycle and tracking which invoices remain unpaid. If a customer misses a payment, your team will need to follow up manually.

Bank transfers can work well for businesses that invoice customers individually, especially for B2B contracts. But if you want to automate recurring collection, a standing instruction, GIRO direct debit or card-on-file may be more suitable.

Method 3: Card-on-file

Card-on-file lets businesses charge customers automatically using saved payment details, without requiring them to approve each payment.

Familiar examples include Netflix and Spotify Premium subscriptions, where customers pay on a recurring basis.

How card-on-file works

Customers enter their card details and authorise future charges during checkout. Your payment provider stores a token in place of the card number, allowing you to charge the card on each billing date without asking customers to enter their details again.

Network tokens offer an additional benefit. Issued by card networks, they replace the card number and may be updated when a card is replaced or expires, helping reduce payment failures.

Why recurring card payments fail

Recurring payments can fail for several reasons:

• Expired or replaced cards: The saved details may no longer work.

• Insufficient funds: The customer’s account or credit limit cannot cover the charge.

• Issuer declines: The bank rejects the payment because of a security check, spending restriction or other issue.

• Cancelled cards: The cardholder or issuing bank has closed or blocked the card.

Business cards can introduce additional complications, such as company spending limits or cards being cancelled when employees leave.

How to reduce failed payments

Three measures can help businesses recover more recurring payments:

1. Update card details: Check whether your payment provider supports card account updater services, which can refresh eligible card details when a card is replaced. You can also remind customers to update their details before expiry.

2. Retry eligible failures: Some declines are temporary. Retry them according to your payment provider’s guidance, rather than repeatedly submitting payments that are unlikely to succeed.

3. Notify customers promptly: Send a clear payment-failure message with a secure link to update their card details or try another payment method. A grace period before suspending access can give customers time to resolve the issue.

Methods 4 and 5: Bank standing instructions and GIRO

Both bank standing instructions and GIRO can automate recurring payments, so customers don’t need to approve every payment individually. Here’s how it works:

• With a standing instruction, customers tell their bank to transfer a set amount to a specified payee on a regular schedule.

• With GIRO, customers authorise a business to collect payments from their bank account, and the business submits collection requests according to the agreed arrangement.

Theoretically, the key difference is who initiates the payment and controls the amount and schedule. But for a fixed-price subscription, both can work in much the same way: customers set up the arrangement once, and payments are then made automatically.

How GIRO works for subscription collection

GIRO is a payment system in Singapore that lets businesses collect recurring payments directly from customers’ bank accounts. Instead of asking customers to initiate each payment, the business submits collection requests under an authorised arrangement.

How a GIRO arrangement works

A GIRO arrangement involves three parties:

• The customer: Authorises the business to collect payments from their bank account.

• The billing organisation: The business collecting the payment.

• The customer’s bank: Processes the authorised deductions.

For each collection, the business submits the amount and payment date for processing through the banking system. The customer does not need to approve each collection individually, provided it falls within the authorised arrangement.⁴

GIRO supports two types of transactions:

• Direct debit: A billing organisation collects money from a customer’s bank account. This is the type used for subscriptions and recurring bills.

• Direct credit: Money is paid into someone’s bank account, such as when an employer pays salaries.

GIRO is processed through the banking system in batches, rather than in real time like PayNow. It is commonly used for regular payments to government agencies and private billing organisations, including utilities, telecommunications and insurance providers.² ⁴

For subscription businesses, GIRO can reduce the need to chase customers for each payment. If your fees vary with usage or the number of seats, check that your arrangement supports variable amounts and that customers understand how their charges are calculated.

How long does GIRO take to set up in Singapore?

Setup time depends on whether you use paper GIRO or eGIRO, as well as the customer’s account type and the banks involved.

Paper GIRO vs eGIRO

• Paper GIRO: Customers complete a paper application, which typically takes around three to four weeks to process.⁵

• eGIRO: Customers authorise the arrangement digitally through a supported bank. Setup can take minutes for individuals, while company accounts with designated approvers may take up to 48 hours, depending on the bank and account setup.⁵

With eGIRO, customers generally start the application on the billing organisation’s website or app, select their bank and approve the request through internet banking.

However, the first deduction can only take place after the bank confirms the arrangement. You may need another way to collect the first payment while approval is pending.

eGIRO limitations to know

eGIRO requires support from both the billing organisation and the customer’s bank. Before offering it, check these limitations:

• Bank and account eligibility: Not all banks support eGIRO for company accounts. According to the ABS list published in December 2025, Citibank, Standard Chartered and HSBC offered eGIRO to retail customers only.⁷ Check the latest eligibility information before relying on this list.

• Changing existing instructions: eGIRO instructions may not be amendable. Customers may need to cancel an existing instruction and set up a new one to make changes. Confirm the applicable rules with your bank or provider.⁶

• Customer eligibility: Customers may need to have an existing relationship with the billing organisation, depending on the eGIRO setup.

What businesses need to set up eGIRO

Businesses generally need to work with a bank or an eGIRO-enabled provider to support the authorisation process.

If integrating directly, a billing organisation must connect to the eGIRO aggregator, which exchanges authorisation requests between banks and billing organisations, and build the application workflow into its own website or app.

Individual banks may impose additional requirements. For example, UOB requires billing organisations to maintain a collection account with the bank.⁵ Check your bank’s requirements before committing to an implementation.

How can businesses offer GIRO collection in Singapore?

There are two main routes: set up collection through your bank or use a payment provider that already supports GIRO.

Route 1: Set up GIRO through your bank

Each bank has its own eligibility criteria and setup requirements. You may need a customer-facing website or app, technical resources and an integration with the eGIRO aggregator. For example, OCBC requires billing organisations to be corporate customers.⁸

This route gives you control over the integration, but it requires more technical work. It may suit businesses with development resources and enough collection volume to justify building and maintaining their own setup.

Route 2: Use a payment provider that supports GIRO

A payment provider may already support GIRO collection, reducing the need to build the integration yourself.

Before choosing one, check which banks and account types it supports, how long authorisation takes, and how it handles failed deductions, payment notifications and retries. Also confirm whether it supports the collection amounts and billing schedules your subscriptions require.

How to choose the right recurring payment method

The right payment method depends on how you bill customers, how much automation you need and the effort you can invest in setup.

Many businesses will benefit from offering more than one payment method. You could use card-on-file for standard subscriptions, offer GIRO to business customers who prefer it, and retain PayNow or bank transfers for one-off payments.

Choose methods your customers can access and make sure your team can track missed payments and recover failed collections.

For GIRO and card-on-file in particular, confirm that your bank or payment provider supports your billing model and offers the tools you need to manage failed payments.

Collecting recurring payments in Singapore with Airwallex

Getting customers to subscribe is only half the job. You also need to collect payments reliably each billing cycle, recover failed charges and protect your business from fraudulent transactions.

Airwallex combines subscription billing with payment optimisation and fraud prevention tools to help you manage these challenges. Here’s what you can do with Airwallex:

• Automate subscription collection: Set up subscriptions to charge a saved payment method on each billing date.

• Improve payment approval rates: Optimize 360 uses smart retries, intelligent payment routing and network tokenisation to help recover declined payments and keep stored card details up to date. This helps reduce preventable payment failures.

• Detect and respond to fraud: Airwallex Sentinel detects coordinated fraud attacks and unusual payment patterns, then deploys targeted responses to help protect businesses from fraudulent transactions.

You can set up an Airwallex account fully online. There are no monthly fees, setup fees, or monthly balance requirements on the free Explore plan.

Frequently asked questions

Can PayNow be used for recurring payments in Singapore?

No. PayNow needs the customer to approve every payment in their banking app, so you can’t charge them automatically each month. MAS and ABS are studying preauthorised and recurring payments, and they plan to publish an implementation roadmap by the end of 2026.¹ Until then, use GIRO or card on file for automatic collection.

What is the difference between GIRO and PayNow?

PayNow is a push payment: the customer starts each transfer, and it arrives in real time. GIRO direct debit is a pull payment: the customer authorises you once, and you collect on each billing date through batch processing. That makes PayNow better for one-off payments and GIRO better for fixed, recurring ones.

How long does it take to set up GIRO for a business?

It depends on the method. Paper GIRO takes around 3 to 4 weeks, while eGIRO takes minutes for individuals and up to 48 hours for companies with designated approvers.⁵ eGIRO only works if both the billing organisation and the customer’s bank support it.

Is GIRO or card better for SaaS subscriptions in Singapore?

Card on file suits most SaaS plans, because customers can start online and the amount can change with seats or usage. GIRO suits fixed-amount contracts, especially with larger business customers, but it needs bank support and more setup. Many businesses offer both.

How do I set up card recurring billing for my Singapore business?

Choose a payment provider that supports saved cards for merchant-initiated charges. Collect the customer’s agreement to recurring charges at the first payment, store the token the provider returns, and schedule a charge for each billing date. Then add expiry reminders and a retry process for failed payments. With Airwallex Billing, you can set a subscription to charge a saved payment method automatically.

Can I accept bank transfer for subscription invoices in Singapore?

Yes, but it’s a manual option, because the customer starts each transfer. You send an invoice with your bank details and a payment reference, and the customer pays it. With Airwallex Billing, invoices show S$ bank details and a unique reference to help you match each payment.

What happens when a GIRO deduction fails?

The billing organisation tells the customer the deduction was unsuccessful, and it may offer another payment method or a second deduction date. The bank, the billing organisation, or both may charge a service fee. Check your bank’s rules on retries before you promise customers a specific schedule.

Sources:

1. https://www.mas.gov.sg/-/media/PNG2-Phase-1-Collaterals_PDDC/PayNow-Gen2-Phase-1-Report_25-June-2026.pdf

2. https://abs.org.sg/docs/library/mas-and-abs-chart-instant-payments-enhancements-with-paynow-generation-2-study.pdf

3. https://abs.org.sg/e-payments/giro

4. https://www.uob.com.sg/business/transact/collections/egiro.page

5. https://www.abs.org.sg/docs/library/2025-12-29_egiro-participating-banks.pdf

6. https://www.cimb.com.sg/content/dam/cimbsg/business/documents/help-support/others/egiro-faq.pdf

7. https://www.ocbc.com/business-banking/smes/transactions/egiro