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Corporate cheques in Singdollar to cease on Jan 1, 2027: What payment alternatives do businesses have?
Businesses are urged to transition to e-payment solutions early to boost operational efficiency and remain competitive in today’s digital economy
As corporate cheques will be discontinued in Singapore from Jan 1, 2027, businesses are encouraged to switch to electronic payment methods, which allow transactions to be made anytime, anywhere.
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Once the standard for business payments, cheques will soon be a thing of the past.
Transaction volumes for cheques denominated in Singapore dollars have fallen by approximately 80 per cent from 61 million in 2016 to less than 14 million in 2023, alongside growing adoption of e-payments by both individuals and businesses.
The Monetary Authority of Singapore (MAS) announced in 2023 that corporate cheques denominated in Singapore dollars would be discontinued.
To ensure that their cheques can be processed before the deadline, corporate cheque payees should present their cheques for clearing well before Jan 1, 2027. Retail cheques, US dollar cheques and cashier’s orders remain available.
This adjustment will affect businesses still using corporate cheques and their payees. Businesses make payments to a wide range of recipients – from employees, suppliers, software vendors to transport providers and insurers. The list goes on.
While cash remains an option, digital payments offer companies greater convenience and efficiency.
Says The Association of Banks in Singapore director Ong-Ang Ai Boon: “Transitioning from corporate cheques to e-payments will accelerate the shift to more efficient payment methods, unlocking operational benefits for companies and contributing to broader economic gains. We encourage businesses to accelerate the adoption of e-payments now and harness their speed and convenience to stay competitive in today’s digital economy.”
The good news is that there are many e-payment alternatives for businesses to transition away from cheques.
E-payment options at your fingertips
In Singapore, a widely used option is Fast and Secure Transfer (FAST), which allows immediate bank-to-bank transfers using account numbers. Most banks in Singapore support FAST, allowing businesses to transfer funds easily even when they do not share the same bank.
Another option many are familiar with is PayNow, a funds transfer service that enables customers to send money through FAST using their mobile numbers, National Registration Identity Card (NRIC), Foreign Identification Number (FIN), Unique Entity Number (UEN) or Virtual Payment Address (VPA) in place of bank account numbers. It is a quick way to facilitate either business-to-business or customer-facing payments.
For recurring payments such as rent or supplier fees, businesses may also use the General Interbank Recurring Order (GIRO). GIRO offers a reliable way to automate regular transactions and takes up to two working days to process.
When it comes to high-value, same-day transfers on working days, businesses can turn to the MAS Electronic Payment System (MEPS+). These include time-sensitive property or share transactions.
New e-payment solutions for deferred payments in place of cheques
On July 28, 2025, two new electronic deferred payment (EDP) solutions – EDP and EDP+ – were launched to support the transition to e-payments for cheque users, complementing existing solutions such as PayNow, FAST, GIRO and MEPS+.
EDP and EDP+ can be used by both individuals and businesses to make deferred payments in place of post-dated cheques and are accessible via the digital banking platforms of seven banks – Citibank Singapore, DBS, HSBC, Maybank, OCBC, Standard Chartered Bank and UOB.
The ability to defer payment is particularly useful when businesses want to indicate an intent to pay but only release funds at a later date after the recipient has fulfilled specific conditions.
For example, payment can take effect only after supplies are delivered, or a quotation has been provided. In property transactions, companies can also opt for deferred payment when exercising the option to purchase.
Setting up a deferred payment is simple. The payer issues the EDP and sets an effective date, which can be up to six months from the date of issuance. For EDP+, the effective date will be set to the next calendar day. In both cases, the payee has six months to request payment – that is, present the EDP or EDP+ through their bank’s digital banking platforms – on or after the effective date to receive the funds. Funds will be received by payees within two working days.
With EDP+, there is the added benefit that funds are immediately deducted from the payer’s account when the EDP+ is issued. This gives greater assurance to the payee, ensuring the amount is unavailable for other transactions until the effective date. For EDP, funds are only deducted when the payee presents the EDP.
Traditionally, businesses have used post-dated cheques to manage cash flow, scheduling payments to avoid immediate strain on funds or to align with specific dates, such as month-end or the completion of a project milestone. EDP and EDP+ offer this same functionality in a digital solution, enabling businesses to better coordinate outgoing payments with incoming revenue. This not only gives businesses greater control over their finances but also supports more effective planning and resource allocation.
What you need to know about the new electronic deferred payment solutions – EDP and EDP+
Launched on July 28, 2025, electronic deferred payment solutions EDP and EDP+ are offered by seven major banks in Singapore: Citibank Singapore, DBS, HSBC, Maybank, OCBC, Standard Chartered Bank and UOB.
The solutions are available to both individuals and businesses. They can be accessed through any of the seven banks’ digital banking platforms – either the mobile banking app or the internet banking site – and no sign-up is required.
Some benefits of EDP and EDP+ include:
Ease of use: Payer can transfer funds using the mobile number, National Registration Identity Card (NRIC), Foreign Identification Number (FIN), Unique Entity Number (UEN), or bank account number of the payee.
Full traceability: Both payer and payee receive real-time updates on status changes, including when an EDP/EDP+ is issued, cancelled, expired and presented (i.e. act of payee requesting payment). This provides visibility on when and why a payment was made, and who the payer and payee are.
