How to pay suppliers in Singapore dollars

Key takeaways 

• How you choose to pay suppliers in Singapore involves balancing cost, speed and visibility.

• Traditional bank transfers, cards, and wallets can all work, but usually mean compromising one of the above.

• Modern fintechs like Airwallex are built for businesses paying overseas suppliers at scale. You can hold and pay in SGD, and use local Singapore payment rails with just 0.5%-1% fees and mostly same-day settlement.

Whether you’ve just onboarded a new manufacturer, moved part of your supply chain, or hired another contractor, the first time you receive an invoice from Singapore is often exciting. Then, you might realise you haven’t figured out the best way to settle it yet.

In this article, we’re going to cover your options for sending Singapore dollars (SGD) cross-border, the associated fees with each, and the potential hiccups you might encounter along the way.

Why Singapore suppliers prefer to be paid in SGD

Most suppliers will expect you to pay in Singapore Dollars (and may even request it in contracts). If you pay in GBP or USD, you’re asking them to absorb the FX costs for converting the currency. Payments made through Singapore local rails also typically clear faster and are easier to reconcile – your suppliers receive the funds sooner, and there should be fewer admin issues at month-end.

4 ways to pay suppliers in Singapore dollars

There’s more than one way to send SGD to a Singapore supplier. The right option often depends on how regular the payments are, your existing finance infrastructure, and how much friction you’re willing to tolerate.

Traditional bank transfers

For many with a UK business account, a Society for Worldwide Interbank Financial Telecommunications (SWIFT) payment is the default. In this scenario, your funds would be routed through a chain of banks rather than directly from your account to your supplier’s. Each bank processes the payment, adding security checks and fees, and once the Singaporean destination bank receives the funds, it credits your supplier.

Despite the name, SWIFT isn’t fast. Settlement can take between one and five days - it’s rarely the most efficient, cost-effective or predictable option (once the funds are in transit, visibility is limited)¹.

Credit or debit card

Some Singaporean suppliers will accept card payments via payment gateways or embedded payment links. This payment method is supplier-led and cannot be initiated independently. They are usually pretty straightforward to use, and some businesses like the security provided by using a company card.

While this method can be convenient for one-off payments, transaction and FX fees can vary between providers, and it’s not easy to scale. If you’re paying hundreds of suppliers, you probably don’t want to be clicking on 100 different links.

Fintech platforms

Instead of relying on your high-street bank’s international transfer method, you can pay Singapore from a multi-currency account with a modern fintech platform like Airwallex. It generally means faster, more affordable, and better protected payments.

There might be a slightly longer onboarding process, but these platforms are purpose-built for businesses that need to send regular cross-border payments. If we compare sending via Airwallex with an international SWIFT transfer via your high-street bank, you could save serious cash. One SWIFT transfer costs around £15 plus conversion, FX and bank fees, whereas you can send via Airwallex’s local rails for a fee of interbank rate + 0.5%-1%.

Digital wallets and money transfer services

These payment methods are designed for quick, easy payments between individuals.  PayPal, Western Union, and XE are well-known providers in this space.

The transfer starts with you initiating a payment using an email address, phone number, or basic bank details. The provider collects the funds from you, manages the currency conversion, and then releases the money to your supplier’s account. 

The appeal is simplicity – it’s very easy, and the setup is minimal. But beyond one-off payments to freelancers, they get tricker to manage. You’re initiating a new payment per supplier, costs and settlement times vary, and there’s no embedded approval workflow.

If you’re managing suppliers across multiple countries, this broader UK guide to paying overseas suppliers breaks down your options in more detail.

The bank details you’ll need for SGD payments

This depends on how you’re paying your supplier. Are the funds being credited directly to a bank account or processed via an intermediary platform?

For bank-to-bank payments (traditional bank transfers and most fintech platforms), you’ll typically need²:

• The supplier’s legal account name, as registered with their bank (mismatches are a common cause of held or returned payments)

• The supplier’s Singapore bank account number

• The supplier’s bank name and, in some cases, address

• A SWIFT/BIC code identifying the receiving bank (Singapore does not use IBANs³)

• A payment reference, usually an invoice number, for reconciliation

• Occasionally, a purpose-of-payment description for compliance checks.

With Airwallex, you can send payments faster and cheaper via local rails, meaning the payment settles within Singapore’s domestic banking system. You don’t always need international routing details like a SWIFT code or branch address - just the local account information.

Cards and digital wallets don’t require full bank details at the point of payment. Your card details and/or a wallet identifier (ie your email address or account ID) is usually enough.

Paying Singapore suppliers from the UK: what to expect

If this is your first time paying a supplier in Singapore, rest assured the process doesn’t have to be complicated – but it is different from settling a domestic invoice. The timing, fees, and various banking systems involved in cross-border payments often catch UK businesses out. You’ll want to factor in:

• Settlement isn’t instant by default: Payment speed depends on the route used and local cut-off times in both the UK and Singapore.

• FX is rarely the only cost: Intermediary and transfer fees can be deducted mid-route on cross-border payments.

• Small data errors cause disproportionate delays: Mismatched account names, missing references, or incorrect bank details are common reasons for slow payments.

• Real-time visibility is a nice-to-have: With traditional banks, tracking often stops after the payment is sent, putting pressure on cash flow and commercial relationships.

• What works once may not scale: A payment method that’s fine for a one-off invoice can become slow and manual once payments become regular.

• How easy it is to reconcile international payments: If your payment method isn’t connected to your accounting software, month-end can be painful.

Understanding how cross-border payment flows work can help explain the discrepancies between methods and countries.

Managing FX costs when paying in Singapore dollars

Moving money across borders always involves some fees, but what complicates forecasting is that the FX cost isn’t just about the exchange rate you see on the day. It’s influenced by bank spreads, card network pricing, and hidden fees applied by intermediaries. This is why two SGD payments can cost different amounts even when the invoice value is the same.

If you don’t already hold SGD, and convert currencies at the moment each payment is sent, you’re relying on that day’s exchange rate and the provider’s margin. 

Holding SGD balances in a multi-currency account works differently. If you receive funds from Singapore customers, you don’t need to convert to pay suppliers (meaning no conversion fees). Or, you can choose to convert when markets are favourable, then pay invoices directly from that balance. This should help minimise your foreign exchange costs by removing your rate exposure between invoice approval and payment.

Common issues when paying suppliers in SGD

As noted above, paying suppliers in Singapore shouldn’t be complicated. Try to avoid these small errors that can cause delays and unnecessary back-and-forth.

Incorrect or incomplete bank details

Account names that don’t exactly match bank records or missing identifiers/SWIFT codes can cause payments to be held or returned after they’ve been sent. 

Paying in the wrong currency

Sounds obvious, but it’s an easy trap to fall into. If a supplier invoices in SGD but receives GBP or USD, their bank may convert the funds automatically using its rate and fees. The amount received won’t match the invoice.

Missing or unclear payment references

Without these, it’s harder for suppliers to reconcile payments, especially if multiple invoices are involved. This usually results in extra admin rather than outright failure.

Unexpected fees or rejected payments

Intermediary bank fees, failed compliance checks, and unsupported payment routes can lead to deductions or rejected transfers. The payment didn't arrive as expected.

Using Airwallex to pay suppliers in Singapore dollars

Paying suppliers in Singapore is fastest, cheapest, and smoothest when you’re working in SGD from start to finish. 

With Airwallex, UK businesses can hold SGD in a multi-currency account (with 22 other currencies) and use it to pay suppliers directly, rather than converting currency every time an invoice is due. With our local rails, you can pay your suppliers as if you’re in Singapore, which only incurs an interbank + 0.5%-1% fee, and will most likely be settled within a few hours.

Our centralised dashboard means you can access payments, balances and invoices in one place, plus our accounting and ERP integrations make month-end reconciliation simple. Each SGD payment can be automated using OCR technology, tracked through to settlement, and reconciled without stitching together data from multiple banks or tools.

FAQs

Do Singapore suppliers require payment in SGD?

Not always, but many do. Singapore suppliers typically invoice in SGD to avoid taking on FX risk and to keep pricing and accounting simple. If you pay in another currency, the receiving bank may convert the funds on arrival, often applying its own rate and fees, which can result in short payments or reconciliation issues.

How long do SGD payments from the UK usually take?

A traditional bank transfer via SWIFT typically takes 1–5 business days to reach Singapore, and longer if intermediary banks or compliance checks are involved. Where SGD payments are sent using local Singapore payment rails, settlement is often same day or next business day, depending on cut-off times. Over 90% of Airwallex payments arrive on the same day⁴.

Is it cheaper to pay suppliers in SGD or GBP?

In most cases, it’s cheaper and faster to pay in SGD if the supplier invoices in SGD. Paying in GBP usually means the supplier’s bank converts the funds on receipt, applying its own FX margin and fees. 

What causes SGD payments to be delayed or fail?

The most common issues are incorrect or incomplete bank details, missing payment references, payments being routed through multiple intermediary banks, local cut-off times, and additional compliance checks.

Can UK businesses hold and pay SGD without a Singapore bank account?

Yes, easily. Many modern fintechs like Airwallex let you hold and manage currencies (in our case, 23 currencies) including SGD. You can then pay Singapore suppliers via local payment rails at a low cost and mostly same-day, without opening an account in Singapore.

Sources and references

1. https://wise.com/gb/blog/how-long-do-international-bank-transfers-take?

2. https://www.airwallex.com/docs/payouts/payout-network/singapore?

3. https://www.dbs.com.sg/personal/support/bank-general-swift-code-details.html

4. https://www.airwallex.com/uk/blog/best-way-to-pay-overseas-suppliers