Marsiling Minimart’s PayNow Fee Sparks Debate: A Sign of Things to Come for E-Payments?
A Marsiling minimart, MyHome Mart, has found itself at the center of a debate after reports surfaced of a surcharge for customers using PayNow. Although the store maintains the fee applies only to cigarette purchases, the incident highlights growing tensions between merchants and evolving payment methods. The situation raises questions about the future of e-payment surcharges and the costs associated with digital transactions.
The Surcharge: What Happened at MyHome Mart?
Customers took to social media to express their frustration with MyHome Mart’s policy. One Facebook user claimed a S$0.40 fee was applied to each item purchased via PayNow, resulting in a S$1.60 surcharge for a four-item purchase. Another netizen reported a similar S$0.40 charge in October 2025. However, staff at the store clarified to Shin Min Daily News that the S$0.50 charge is specifically for cigarettes paid for using PayNow. A notice in both English and Mandarin informs customers of the surcharge due to “service provider charges.”
Why the Charge? The Store Owner’s Perspective
The owner of MyHome Mart, Mr. Chen, explained that the surcharge is a response to a 1% fee levied on all e-payments. He claims his cigarette prices are already S$0.70 to S$0.80 cheaper than competitors, and his profit margin is only S$0.15 per pack. Without the surcharge, he fears losing money on cigarette sales after deducting bank fees. Some customers, he says, even accept the extra charge, occasionally purchasing entire cartons via PayNow despite the added cost.
PayNow Surcharges: What Does the Law Say?
According to Deputy Prime Minister Gan Kim Yong, the Association of Banks in Singapore (ABS) prohibits merchants from imposing surcharges on PayNow transactions. Major retail banks have also waived transaction fees for payments from consumers. However, a “minimal fee” may apply for merchants using additional services, such as payment notifications. The ABS clarified that the payment method used at MyHome Mart was NETS, not PayNow, as indicated by the QR code displayed at the cashier.
NETS vs. PayNow: Understanding the Difference
The ABS emphasized that the QR code at MyHome Mart did not feature the PayNow logo. PayNow is intended as a free and convenient payment method, and merchants are prohibited from charging processing fees for its use. The same Singapore QR code can be used by multiple e-payment platforms, including NETS, and the store’s QR code was specifically for NETS payments.
The Broader Trend: Rising Costs of E-Payments for Merchants
While PayNow itself prohibits surcharges, the incident at MyHome Mart underscores the financial burden e-payments can place on small businesses. The 1% fee cited by the store owner is not uncommon, and merchants are constantly navigating the costs associated with accepting digital transactions. This is not an isolated incident; a similar situation occurred with Singapore Pools last November, which initially charged S$0.10 per transaction before absorbing the fees.
Will Surcharges Become More Common?
It’s unlikely we’ll notice widespread PayNow surcharges, given the ABS’s stance. However, as e-payment adoption continues to grow, merchants may seek ways to offset transaction costs. This could lead to more creative pricing strategies, such as tiered pricing or loyalty programs that incentivize cash payments. The situation highlights the need for a sustainable e-payment ecosystem that benefits both consumers and businesses.
Pro Tip:
Always check the payment method before completing your transaction. If a store displays a QR code, confirm whether it’s for PayNow or another platform like NETS to avoid unexpected fees.
FAQ
- Is it legal for merchants to charge a fee for using PayNow? No, the ABS prohibits merchants from imposing surcharges on PayNow transactions.
- Why did MyHome Mart charge a fee? The store claims the fee applies only to cigarette purchases via PayNow and is due to charges from the payment provider (NETS).
- What is the difference between PayNow and NETS? PayNow is a direct bank transfer service, while NETS is a separate payment network. They use different QR codes.
- Are there any fees for merchants using PayNow? Major banks have waived transaction fees for consumer payments, but merchants may incur fees for additional services.
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