Singapore merchants adopt SGQR to cut Visa and Mastercard fee costs
A MAS parliamentary reply revealed that merchant service fees for Visa and Mastercard—including interchange, network and bank charges—are squeezing high-volume, low-margin retailers. Merchants are adopting SGQR—combining PayNow, NETS and GrabPay with international wallets—to lower setup costs and speed checkouts, while SGQR+ will add cross-border scheme acceptance via a single acquirer.
1. Merchant Service Fees Pressure
Merchant service fees for card payments in Singapore comprise interchange fees, network charges and acquiring bank fees. High-volume, low-margin businesses such as food retailers and convenience stores find these costs directly erode profitability and are seeking ways to reduce transaction expenses.
2. Rise of SGQR Adoption
The standardized SGQR system lets merchants accept multiple payment methods—PayNow, NETS, GrabPay and international wallets—through a single QR code. This eliminates the need for separate terminals, cuts hardware setup costs and accelerates checkout times, helping retailers preserve margins.
3. SGQR+ Extension
SGQR+ is being developed to enhance interoperability and expand acceptance of additional local and international payment schemes via one acquirer. The upgrade aims to support cross-border transactions and simplify reconciliation for merchants in tourist-heavy areas without adding infrastructure complexity.