UOB's new mCollect to help businesses with digital payment

UOB's new digital payment solution allows businesses to receive payment through QR codes.
UOB's new digital payment solution allows businesses to receive payment through QR codes.PHOTO: ST FILE

A new digital payment solution aims to help businesses reduce cash-handling risks and improve cash flow.

United Overseas Bank (UOB) is today launching its mCollect service, which allows businesses to receive payment through QR codes.

The QR codes are generated by businesses through a mobile app, and the codes can be scanned by customers to make payment. Funds are credited to the supplier's receiving account immediately through national fund transfer service PayNow.

In its statement, UOB said that the system helps businesses as it reduces the need for manual processes such as verification of payments collected and reconciliation of collections against invoices.

The mCollect solution can be integrated into businesses' back-end systems, UOB added.

Ms So Lay Hua, head of group transaction banking at UOB's group wholesale banking, said: "While good progress has been made to encourage more cashless payments among businesses, there is still a gap when it comes to the collection process, specifically with cash-on-delivery payments."

She also noted that the system will help reduce risks associated with handling cash.

Food processing and packaging business Boong Food, a subsidiary of Boong Group, was among the businesses which took part in UOB's mCollect pilot.

Boong Group chief executive Steve Wong said the digital payment system has reduced the time taken to collect payment.

Noting that the company makes hundreds of deliveries daily, Mr Wong said manual collection of payment, which requires its staff to verify payment amounts and tally up payments at the end of the day, takes up time and resources, and creates room for human error.

Home-grown business Goodair, which supplies and services air-conditioning units, has also benefited from the payment system.

Ms Mabel Wan, finance manager at Goodair, said that mCollect allows it to generate and embed QR codes in the invoices issued to customers.

"This means our service technicians can collect payments on the spot, shortening the time taken to receive payments, which, in turn, helps to improve our cash flow," Ms Wan said.

Other digital payment solutions geared towards businesses here include DBS Max, DBS Bank's mobile-based QR payment system for corporate organisations and small and medium-sized enterprises, as well as PayNow Corporate, which allows businesses to transfer money electronically using their Unique Entity Number.

A version of this article appeared in the print edition of The Straits Times on November 04, 2019, with the headline 'UOB's new mCollect to help businesses with digital payment'. Print Edition | Subscribe