MEPS transfer: MAS Electronic Payment System explained

If you need to send a high value, quick payment for your business, in SGD to another bank in Singapore, you may have heard of the option to make a MEPS transfer¹. But what is MEPS, and how does it work?

This guide walks through all you need to know. Plus, if you’re wondering about the differences between MEPS vs FAST we’ve got that covered too, with a roundup of a few different payment systems in Singapore.

We'll cover:

We’ll also touch on the Wise Business account and how to use it as a complement to your MEPS transfers for international payments.

What is MEPS+?

MEPS+ is a real-time gross settlement system which began operating on 9 December 2006. MEPS+ is operated by MAS (Monetary Authority of Singapore), and facilitates secure transfers in Singapore dollars.

Features of MEPS

MEPS has a range of important features which are often not visible to the end user, but which make it an efficient way to process SGD transfers.

• For example, MEPS payments use SWIFT messaging to securely process payments, which is a globally recognised system and which makes payment flows frictionless.
• MEPS also has automated gridlock detection and resolution which will spot any delays in processing payments and make sure they do not impact the end users of the system.

For Singapore businesses, this is impactful because MEPS payments offer a secure, quick and easy way to move even large value payments in SGD.

Sending money electronically is far more efficient than using cash or cheques, and although there are usually fees to pay for sending a MEPS payment, the savings in speed and efficiency and the reduction in room for human error make this a cost effective option.

Learn more about Large Amount Transfers with Wise

Who can benefit the most from MEPS?

MEPS is especially useful for high-value time-critical SGD payments in Singapore.

Let’s say you’re investing on behalf of your business, and want to buy assets while the markets look good.

Using MEPS could be the quickest way to process your transaction to make sure you can invest before the market shifts again.

Other popular payment systems in Singapore

MEPS is just one of the many local payment systems here in Singapore.

The chances are that you’ve come across some of these other payment options on a personal or business basis - and every business is likely to deal with these systems at some point in their journey.

Let’s explore.

Fast And Secure Transfers (FAST)

FAST² payments are processed almost instantly, and can be used for SGD transfers if you and the recipient both have accounts with participating banks or non-bank alternative organisations.

MEPS transfer vs Fast

MEPS tends to be used more for high value transfers compared to FAST, although the main difference may be which banks you can use to process the payment types. MEPS is also a very good alternative if you happen to have an account from a bank which does not participate in the FAST payment network.

General Interbank Recurring Order (GIRO) Payment

GIRO³ is an electronic direct debit mechanism which has been available since back in 1984. Billing organisations can use GIRO to receive payment once they’ve been given permission by the payer - an individual or business.

It’s a common way to pay household bills and taxes, as well as other recurring and fixed payments like credit card bills, mobile payments, and insurance premiums

PayNow

PayNow⁴ is one of the most popular and widely electronic fund transfer services used in Singapore - the chances are that you use it frequently to make small personal payments, splitting a bill with friends for example.

PayNow is offered via a network of major banks in Singapore and allows you to make transfers instantaneously by using an NRIC, UEN or mobile number, so you don’t need to share your full banking details to receive a transfer.

Network for Electronic Transfer (NETS)

NETS⁵ is a local payment processing service owned by three of the country’s major banks: DBS Bank, OCBC, and UOB.

You can make payments using a NETS card, which will be immediately debited from your account at the point of purchase.

NETS is popular among retailers and merchants due to its low commission fee in comparison to debit cards fees - some stores and merchants will only take NETS payments, or other electronic options such as PayNow or QR code payments.

Looking for more ways to manage your business finances across borders?

MEPS is ideal for fast and secure local transactions in Singapore dollars, and particularly for high value payments. However, if you need to handle international transfers for your business, you’ll likely need another solution. While turning to your bank may seem like the obvious option, it may not be the cheapest, fastest or most convenient.

Banks tend to charge relatively high fees for international services - which can include upfront charges for telegraphic transfers, but also less easy to spot fees, which are included in the exchange rate you get for currency conversion.

Instead of letting international service fees from your bank eat into your profits, why not try out Wise Business to complement your preferred local payment method? Wise is trusted by 16+ million individuals and companies globally, for fast, cheap international payments which use the mid market exchange rate. Fees are low, transparent and easy to check and compare. Take a look at how Wise does versus your bank to see whether it’s a good match for you.