SINGAPORE (Apr 21): CIMB Bank and Wirecard AG, a global leader in electronic payment solutions, have signed a partnership agreement to offer banking and payment solutions to small-and-medium sized merchants in Singapore.
CIMB and Wirecard will offer SMEs, in particular retailers, a range of services, such as setting up a merchant account, to mobile point-of-sale (mPOS) payment technology, a payment method that is fairly new in Singapore.
The latter enables retailers to accept credit card payments through a mobile device.
This means payments can be made anywhere and at any time, and without the need for phone lines or power points.
It is also cheaper for retailers, costing $20 a month, while renting traditional point-of-sale terminals cost $50 a month.
“All the data we have read tells us that digital banking is showing a significant upward trajectory and electronic payment transactions across multiple sales channels are growing rapidly, not just in Singapore but across the world,” says CIMB Singapore CEO Mak Lye Mun.
Wirecard will provide a customisable payment platform that supports mobile and traditional point-of-sale, along with an online portal that allows merchants to real-time tracking of their transactions, as well as risk and fraud management.
CIMB will offer retailers a merchant account that offers settlement by the next day, which means better cash flow for the retailers, as well as an overdraft facility with zero interest charged for the first 65% of the credit limit.
A 12.88% per annum interest will be charged on the remaining 35% of the credit limit, which translates to an effective interest rate of 10% per annum, for the overdraft facility.
“SMEs constitute to backbone of this economy, employing more people and creating more value-add than most large corporates. Yet while SMEs are so important to our economy, they often lack access to innovations in the latest technology and payment services. This puts them at a disadvantage in using their financial resources in driving sales and customer loyalty,” says Wirecard COO Jan Marsalek.
“Cash is still the payment method of choice in most SMEs, giving them a distinct disadvantage in today’s economy. Electronic payments are necessary if retailers want to reach out to customers through the Internet or mobile devices,” he adds.
Pilot merchants that have used this new range of services prior to their official launch today include Melville Park Supermarket and 1855 The Bottle Shop.
Clement Tan, owner of Melville Park Supermart, says mPOS has boosted its payment collection efficiency, freeing up some time for Tan to focus on growing the business.
“Even our less tech-savvy delivery personnel find the mPOS easy to use,” he says.
Goh, owner of 1855 The Bottle Shop, notes that mPOS has allowed for purchases at wine-tasting events and home delivery. This has helped improve relationships with its customers, he adds.