Proof-of-concept with 1,000+ acceptance points aims to eliminate multiple merchant-acquirer relationships.

The Monetary Authority of Singapore launched a proof-of-concept for SGQR+ in November 2023, enabling merchants to accept 23 local and cross-border payment schemes via a single financial institution, a leap that addresses the fragmentation left by the original SGQR standard.

The Evolution of SGQR

Singapore's first-generation QR code standard, SGQR, was launched in 2018 by MAS and the Infocomm Media Development Authority to consolidate multiple payment QR codes into a single label at merchant storefronts. Before SGQR, consumers encountered a clutter of separate QR codes for different payment options—one for PayNow, another for GrabPay, a third for NETS—creating confusion and visual disorder at checkout points.

As of September 2023, SGQR had 31 members, all financial institutions conducting merchant acquisition services in Singapore. The scheme provided an infrastructure-light alternative to electronic point-of-sale (EPOS) hardware, reducing setup costs for merchants. A static SGQR label required no costly terminal installation, lowering the barrier to digital payment acceptance for small merchants and hawker stalls.

NETS, the largest merchant acquirer in Singapore, leveraged SGQR specifications to launch NETS QR, achieving interoperability with over 21 local and foreign banks and e-wallets, initially targeting the food and beverage sector. NETS QR also established cross-border payment linkages with China (via UnionPay QR) and Indonesia. Despite these gains, the original SGQR remained a catalogue of available payment options rather than a true interoperability layer.

The Interoperability Gap

SGQR solved the problem of visual clutter but left a structural limitation untouched. Merchants accepting a range of local or foreign payment schemes still had to maintain separate commercial relationships with different financial institutions. A merchant wanting to offer PayNow, GrabPay, Alipay, and UnionPay would need individual acquirer agreements for each.

This fragmentation meant that tourists could only use their preferred payment apps if the merchant had a specific commercial tie-up with the relevant institution. A visitor from China with Alipay might find acceptance at one stall but not the next, even if both displayed SGQR labels. The need for real-time interoperable QR payments became more critical as merchants sought to scale their businesses and serve a wider domestic and foreign customer base, according to a MAS whitepaper published in October 2023.

SGQR+ Proof of Concept

MAS announced the SGQR+ proof of concept on 31 October 2023, with the pilot conducted from 1 to 30 November 2023. The POC involved 23 payment schemes across more than 1,000 merchant acceptance points—deployed both at the venue of the Singapore FinTech Festival and in the Changi district, a high-traffic tourist and residential area.

The POC tested two separate technology tracks featuring different technical solutions, as detailed in MAS's whitepaper "Interoperable QR Payments in Singapore." SGQR+ enables merchants to accept QR payments from a variety of schemes through a single financial institution, eliminating the need for multiple acquirer relationships. Merchants sign up with one financial institution and instantly unlock acceptance of all schemes participating in the SGQR+ network.

Sopnendu Mohanty, MAS Chief FinTech Officer, stated at the launch that "SGQR+ is a significant leap in interoperable QR payments. It will streamline payment acceptance for merchants and substantially increase the number of merchant acceptance points for both local and foreign consumers to use their preferred e-wallet or banking application."

Implications for Merchants and Consumers

SGQR+ is projected to cover over 95% of QR payment acceptance points in Singapore, based on industry summaries from the POC period. This consolidation means merchants need only sign up with a single financial institution to unlock a diverse range of local and cross-border payment schemes—from domestic options like PayNow and GrabPay to international networks like Alipay and UnionPay.

%Source: Orionmano Industries

For consumers—including the 13.5 million international visitors to Singapore in 2024—SGQR+ means they can use their preferred domestic or foreign payment applications at more merchant locations. Tourists can transact using their native payment apps without wondering whether a particular shop has the right commercial agreements in place.

For merchants, particularly small retailers in tourist-heavy districts like Changi, the benefits are twofold: reduced administrative overhead from maintaining fewer acquirer relationships, and expanded customer reach without additional infrastructure expense. MAS's Chief FinTech Officer stated that the POC paves the way for Singapore to become a "global leader in QR payments and a potential QR payments hub."

Full deployment of SGQR+ is expected to position Singapore as a global QR payments hub, with further cross-border linkages and increased merchant adoption following the successful POC.