DBS launches solution to transform B2B payments and collections landscape in Singapore

Photo by DBS

DBS has launched a solution to transform the largely cash and paper-based B2B payments and collections landscape for businesses in Singapore. The QR-code based solution is powered by DBS RAPID and DBS MAX and addresses Singapore’s aim of enhancing productivity by eliminating cheques by 2025 and going cashless.

It will be piloted in the F&B industry, with heavyweight players such as SG5 and Huber’s Butchery on board. DBS aims to roll out the solution to the wider F&B ecosystem, logistics and trading sectors by the end of the year.

The B2B payments and collections solution was developed after close to 20 digital workshops with F&B operators to map their payments journey and pain points. The workshops, which were run by DBS, also uncovered that on average, close to nine in 10 B2B payments in the F&B industry are still cash-based or done through bank transfers.

The new solution which facilitates cashless and faster F&B payments is an end-to-end QR collection enabled platform that enables instant payments with automated accounts reconciliation functionalities in the backend. Users can also consolidate multiple invoices into one QR-code based transaction. They also have the flexibility to make full or partial payments for one or multiple invoices, and in turn suppliers now have the option of enhancing credit terms for each invoice instantly. To bring customers greater convenience, suppliers can also send a QR code requesting for payment to their customers who are not on-hand to receive the goods in-person.

SG5, the main distributor for Asia Pacific Breweries Singapore, is one of the first F&B operators to pilot the solution and estimates the company will save up to 3,300 man-hours a month.

SG5 CEO Alvin Chua shared that “on average, our frontline staff spend around 3.5 hours every day traveling to different parts of the island to collect cash and cheque payments.” He looks forward to using the man-hours saved to upskill his staff, as well as the boon to cashflow as the company will now be able to receive payments instantly upon delivery of goods.

Digitalizing payments for F&B players is the first step in transforming the cash-intensive B2B payments and collections landscape, said Joyce Tee, Group Head of SME Banking, DBS Bank. “Many SMEs we speak to want to realize productivity gains by becoming more digital but they don’t have the expertise or infrastructure to do so.”

“By understanding their pain points and then laying the foundation for enhanced payments capabilities one sector at a time, DBS aims to lead the way in digitalizing and streamlining the payments landscape in Singapore. Our aim is to enable our SMEs’ time-strapped workforce to be able to spend more time serving their customers and exploring new business opportunities,” she continued.

Through a series of digital workshops with clients from different industries, DBS plans to introduce the solution to the wider F&B ecosystem, logistics companies and import/export merchants later this year.