$40m in CPF savings withdrawn via PayNow since March

Close to 4,000 Central Provident Fund (CPF) withdrawals totalling some $40 million have been made via mobile payment service PayNow by CPF members aged 55 and above since the service was launched in March, an indication that older Singaporeans are willing to try e-payments.

The CPF Board is the first government agency to adopt PayNow by leveraging OCBC Bank's application programming interface, the bank said in a statement yesterday.

To withdraw their CPF savings, eligible members can link their Singapore identity card number to bank accounts from any of the nine PayNow participating banks.

They can then log in to My CPF online services using their SingPass details and submit a withdrawal application.

The money will be deposited into their bank accounts within a day, compared with five working days previously via Giro, OCBC said.

"CPF Board strives to leverage technology to serve our members better," said CPF Board's chief digital services officer Wong Yan Jun.

"By adopting PayNow as an additional payment mode, eligible members who are 55 and above can withdraw their CPF savings in an easy and expeditious way."

There has been concern over whether older Singaporeans can adapt smoothly to a cashless and increasingly digital society.

Against this backdrop, their willingness to use PayNow as a funds transfer mode for CPF savings is especially encouraging, said OCBC.

Mr Melvyn Low, its head of global transaction banking, said: "This is the first time that PayNow has been used for on-demand payment by a government agency.

"Its success bodes well for the imminent roll-out of PayNow Corporate and for Singapore's ambitions of going cheque-free by 2025."

PayNow will be extended to businesses next month with the launch of PayNow Corporate.

A version of this article appeared in the print edition of The Straits Times on July 31, 2018, with the headline '$40m in CPF savings withdrawn via PayNow since March'. Subscribe