Corporate adoption of payments-on-behalf-of models accelerates as regional treasury centres expand in Asia Pacific.

Singapore's POBO transaction value reached SGD 7.8 billion in 2024, underscoring the rapid centralisation of corporate payments as multinationals set up regional treasury centres in the city-state. The number of active corporate POBO clients grew to 1,850 as businesses seek to consolidate payment operations across multiple jurisdictions.

The Rise of POBO in Singapore

The SGD 7.8 billion transaction volume represents a significant milestone for Singapore's position as a regional payments hub. According to DBS, POBO and the related collection-on-behalf-of (COBO) and reconciliation-on-behalf-of (ROBO) models are becoming widespread across multiple Asia-Pacific markets including Singapore, Hong Kong, Australia, New Zealand and Japan.

A key driver of POBO adoption is the expansion of regional treasury centres (RTCs) in the region. As both Asian corporations and foreign multinationals establish RTCs in Singapore and Hong Kong, a growing number of these companies are considering implementing POBO and ROBO solutions. These techniques serve a wide range of industries and company profiles, enabling corporations that are expanding internationally to reduce costs, improve resource allocation, standardise efficiency and control, optimise working capital, and simplify cash and liquidity management.

Transaction Value (SGD billion)Source: Orionmano Industries

Operational and Cost Benefits

The shift toward POBO models is driven by tangible operational and financial advantages. Serrala's analysis of payments centralisation identifies several key benefits that are compelling corporate treasuries to adopt this structure.

Centralised transaction volumes give companies greater negotiating power with banking partners. By directing larger payment flows to preferred banks, treasuries can secure more favourable terms including lower foreign exchange rates. The aggregation of payments from multiple affiliates also enables economies of scale, with bulk payments reducing per-payment costs and strengthening rate negotiation positions.

Cost reduction extends beyond transaction fees. POBO models eliminate the need for redundant local bank accounts across multiple jurisdictions, reducing maintenance fees and administrative overhead. Standardised payment execution through a centralised treasury improves processing speed, accuracy, and vendor satisfaction while reducing human error.

Payment routing optimisation is another significant advantage. POBO enables companies to route payments through local in-house bank-owned accounts, leveraging cost-effective domestic payment methods such as ACH in the United States and SEPA in Europe rather than expensive cross-border wire transfers. This rerouting alone can substantially reduce transaction costs for multinational corporations with high cross-border payment volumes.

Market Context: Cross-Border Payments Growth

The growth of POBO in Singapore is occurring within a broader expansion of the cross-border payments market. According to Grand View Research, the business segment dominated the cross-border payments market in 2024 and is projected to grow at a significant compound annual growth rate over the forecast period. This segment includes B2B transactions, cross-border e-commerce by merchants, and branch and shareholder transfers.

Bank transfers remain the largest channel for cross-border payments, particularly for high-value corporate transactions. Traditional banks continue to serve as the backbone of cross-border payment infrastructure, with most large corporate and retail payments routing through SWIFT-based wire transfers and domestic clearing systems. Banks are modernising these flows through SWIFT's GPI network, which now enables real-time transfer tracking, and investments in ISO 20022 messaging standards.

Large enterprises hold a significant share of cross-border payment volumes, according to Grand View Research. Multinational firms demand integration with enterprise resource planning systems and cash management tools, and have access to premium banking services including dedicated payment platforms, multi-currency accounts, and liquidity pools. These large enterprises' cross-border payment volumes are expected to grow faster than those of smaller companies, further driving demand for efficient, centralised payment structures like POBO.

Challenges and Ecosystem Developments

Despite the clear benefits, POBO adoption faces structural challenges. Serrala highlights that without a shared service model, treasury teams and payment operations remain siloed, creating inefficiencies that undermine the potential gains from centralisation. The lack of centralised expertise within organisations can slow implementation and limit the effectiveness of POBO structures.

The financial ecosystem is responding with targeted innovations. In Singapore, FOMO Pay introduced COBO and POBO capabilities in December 2021 through a partnership with Luxembourg-licensed bank Banking Circle. The collaboration targets corporate clients in APAC, reflecting growing demand from merchants in the high-growth region for on-behalf-of payment solutions. Anders la Cour, CEO of Banking Circle Group, noted at the time: "FOMO Pay's esteemed clientele and steadfast presence in the high-growth APAC market makes them a natural partner in this journey to bring innovative payments solutions to merchants."

BNP Paribas notes that payment hub solutions, including POBO, enable consistent processes and reporting, improve controls, and reduce technology costs. The bank identifies the centralisation of payments as one of the most significant trends in treasury and finance functions in recent years, with corporations adopting different models based on their culture, organisational structure, and regulatory requirements in operating jurisdictions.

The continued expansion of regional treasury centres in Singapore and the broader APAC region, coupled with fintech-driven innovations in payment infrastructure, is expected to further boost POBO adoption. However, standardisation of processes and regulatory alignment across jurisdictions remain key hurdles that corporations and their banking partners must navigate as these models scale.