Payments Resources

Payments Resources
Local Payment Methods in Thailand: How PromptPay Works In an International Payment Gateway

Thailand is embracing the dawn of digital payments after being cash-dependent for decades. In the last six years, the nation has made significant strides in rolling out financial technology, increasing the penetration of such services among its populace¹. According to 2022 statistics, approximately 77.8% of Thailand's population of 70.01 million are active internet users, showcasing a high degree of digital literacy². 

A key driver in Thailand's digital transformation has been PromptPay, an interbank real-time payment system, developed as part of the National e-Payment Master Plan¹. PromptPay is not only a popular local payment method but is increasingly integrated into international payment gateways, facilitating cross-border transactions.

What Is PromptPay?

PromptPay is a cornerstone of Thailand's payment systems, operating as an interbank real-time, near-instant payment gateway that simplifies the way users receive and transfer funds. It links payments to a Citizen ID or mobile phone number, and is similar in functionality to India’s UPI and Singapore’s PayNow3

Developed in cooperation with major Thai banks and Vocalink, a Mastercard company, PromptPay is instrumental in supporting the Thai government’s initiative to transition from a cash-reliant economy to a robust digital economy4.

User Trends in PromptPay

Thailand led all countries in real-time payment transactions per capita in 2022, with the payment method accounting for 34% of all transactions5. The significant uptake of PromptPay is attributed to the widespread availability of mobile phones, which have been a major driver of digital adoption and PromptPay transactions. Since its implementation in 2017 to 2023, PromptPay transactions have surged annually from 88.07 million to over 19.9 billion, underscoring its central role in Thailand's digital economy and cross-border transactions6.

Despite these encouraging numbers, the real sentiment towards digital payments in Thailand remains complex. During the pandemic, digital payment methods saw a surge in use, but in 2022, a survey by the Bank of Thailand indicates a revert to cash for many7. Citing convenience and the absence of added fees, over 50% of respondents across all age groups expressed a preference for cash, with only 27% of the surveyed continuing with digital payment apps post-pandemic8.

Benefits and Drawbacks of Using PromptPay for Online Payment Gateways

As read in the previous section, Promptpay might not be the ultimate solution for digital payments. Nonetheless, it continues to grow in popularity as a local payment method in Thailand and as part of international payment gateways. Why is this so? We now explore its key advantages and limitations:


  • Smooth Checkout Experience: As an interbank payment system, PromptPay allows users to make purchases seamlessly across all banks in Thailand, enhancing the user experience in digital transactions.
  • Real-Time Payment: Transactions are processed instantaneously, usually completing in under a minute, which is ideal for both local and international transactions.
  • Secure and Simple: With a mobile phone and internet connection, PromptPay offers a convenient and secure way to transact, linking each account uniquely to a Citizen ID to bolster security.


  • Low Merchant Adoption in Thailand: The preference for cash among local vendors means digital payment options like PromptPay are less common in grassroots markets. This presents an opportunity for international online businesses to differentiate themselves to a digitally literate audience in Thailand.
  • Fixed Price During Checkout: The fixed pricing structure of digital payments contrasts with the traditional bargaining culture in Thai markets. However, innovations in social commerce platforms like LINE are adapting by integrating haggling features into digital payments, offering flexible pricing through payment links9.

How PromptPay Works in an International Payment Gateway

PromptPay is primarily a local payment system in Thailand, but the Thai government is expanding its reach internationally, with agreements already in place with Malaysia and Singapore. For cross-border transactions, PromptPay requires the use of a third-party payment provider, which serves as the international payment gateway.

Transaction Process:

1. Users first transfer funds to the payment provider's Thai bank account via PromptPay. This can be done by either scanning a QR code or entering the recipient's Citizen ID or phone number within the PromptPay app.

2. After the transaction, the PromptPay app confirms the successful transfer of funds with a notification.

3. The funds are then transferred to one of the payment provider’s international accounts. Finally, these funds are disbursed to the foreign seller's bank account.

When selecting a third-party payment provider for international transactions involving PromptPay, it’s crucial to choose one that offers a robust network of localised markets. This ensures that the service aligns with the specific needs and regulations of the target markets, enhancing the efficiency of cross-border payments.

What are the Fees Required in Using PromptPay?

Local Transactions:

As of 2024, PromptPay’s fee structure of local transactions within Thailand are as follows:

  • Transactions not exceeding 5,000 baht: Free
  • Transactions from 5,000 to 30,000 baht: 2 baht fee
  • Transactions from 30,000 to 100,000 baht: 5 baht fee
  • Transactions from 100,000 to the bank maximum limit: 10 baht fee

This fee model makes PromptPay an attractive option for everyday payments and small business transactions within the country.

International Transactions:

When it comes to cross-border payments facilitated through a third-party payment provider, standard charges apply. These include FX costs, platform fees, and setup fees, which vary depending on the provider chosen. For more information, read our blog article on The Actual Costs in Using a Payment Gateway.

Selecting a reputable and secure international payment gateway is thus crucial to manage these costs effectively and ensure transaction security.

How can Tazapay help?

Understanding the nuances of PromptPay and its fee structure arms you with the knowledge to more effectively penetrate the Thai market. If you're exploring further solutions to enhance your business operations, consider Tazapay. Offering specialised payment solutions for a wide range of needs—from eCommerce platforms to exporters and importers—Tazapay tailors services to help your business thrive in international markets.

Contact us to find out more


  1. The Dawn of Thailand’s e-Payment Era - Thailand NOW
  2. Digital 2022: Thailand — DataReportal – Global Digital Insights
  3. Bangkok Bank PromptPay
  4. Transforming Thailand to a digital economy | Mastercard
  5. Thailand Ranked First Globally in Real-Time Payments Transactions per Capita
  6. Thailand Volume of PromptPay Transactions from 2017 to 2023 
  7. Thailand Rejects Digital Payments in Favour of Cash (
  8. Cash still king, people reject app payments - Thai Examiner
  9. Social commerce in Thailand - statistics & facts | Statista

Payments Resources
Payment Gateway Rails: How does Cross Border Checkout from USA to India Work?

Every day, digital payment gateways facilitate seamless online cross-border transactions. With the cross-border payments industry projected to reach $156 trillion USD by 2022, the integration and functionality of these systems are more crucial than ever. Although these transactions might seem like simple clicks to the average consumer, they are underpinned by robust infrastructures including API calls and always-on servers that cater to both B2B and B2C markets globally.Online cross-border transactions happen on the daily through a whole slew of digital payment gateways. They happen so frequently and so seamlessly that the cross-border payments industry is expected to reach $156 trillion USD in 2022¹.

The Indian Merchant

As Indian merchants continue to expand their reach into international markets, understanding the mechanics of international transactions becomes vital. In the fiscal year (FY) 2023–24, India's export figures are forecasted to be US$776.68 billion1. Particularly, the largest market for these exporters, are the United States, representing a significant opportunity. The U.S. will account for 17.7% of India's exports in FY 2023-24, which has increased over the past 13 years by 7.6 percentage point2.

The American Buyers

To capture the American market effectively, it's essential for platforms to offer diverse payment methods including card payments, digital wallets, and local bank transfers. In 2023, cards were the primary payment method in the U.S. digital commerce market, accepted by 99% of top online retailers, reflecting consumer preference and retailer confidence3

Digital wallets are 2nd in popularity at 81% acceptance, driven by the ubiquity of credit and debit cards. Consumers can link their payments and top up their wallets using card networks such as Visa, Mastercard, and American Express. By integrating and supporting digital wallets, merchants can cater to the preferred payment methods of U.S. consumers.

In addition, other payment methods include bank redirect apps and local bank transfers using banks such as:

JPMorgan Chase

Bank of America

Citibank group

Wells Fargo

Goldman Sachs

Morgan Stanley, etc.

Once an American buyer completes a purchase, the payment gateway springs into action, processing payments through various methods. Whether it’s a direct card payment or a local bank transfer, each method utilises distinct payment rails. Notably, if the payment method is a local bank transfer, the funds are initially held in the payment provider’s local bank account before transferring to the seller’s bank account in India.

Cross-Border Payment

Sending payments across borders essentially involves transferring funds from an account in the origin country to one in the destination country. In this scenario, the origin is the United States and the destination is India.

For bank transfers, cross-border payments are typically conducted via SWIFT wire transfers. Beyond that, card networks have their own payment rails for transferring funds, although platform fees may vary depending on the payment method used.

Key cost factors to consider in cross-border payments include:

  • Bank Surcharges: These are linked to the banks themselves and the surcharge amount varies by bank.
  • Card Surcharges: These can reach up to 4% and are dependent on the card network's fees.
  • Wire Transfer Costs: While expensive for international transactions, wire transfers tend to be cheaper for local transfers.
  • FX Conversion Costs: Foreign exchange conversion costs may also be applied on top of the payment method costs.

For more information, read our blog article on the actual costs of choosing a payment gateway.

It's important to note that some payment providers, like Tazapay, may offer lower platform fees through partnerships with local payment providers, thus reducing these costs. Understanding the intricacies of cross-border checkout and payment gateway rails from the USA to India can help merchants optimise their payment strategies and reduce transaction costs.

Hedging Against FX Fluctuations by Holding USD in a Multi Currency Account

For merchants dealing with suppliers internationally, opting to receive payments in USD can be a strategic move to hedge against fluctuations in their local currency.This strategy can be implemented by opening a multi currency account in the merchant's own country. Such accounts enable merchants to hold USD, their local currency, and any other necessary currencies when conducting business across borders. A multi currency account not only provides flexibility in handling various currencies but also offers a buffer against the volatile nature of foreign exchange rates, thus stabilising financial operations.

By maintaining USD in a multi currency account, merchants can mitigate the risks associated with FX conversion costs and enhance their financial strategy in international trade. This approach ensures that they are well-positioned to manage global transactions efficiently and protect their financial interests against adverse movements in exchange rates.


The final step in the international payment process occurs when the merchant based in India receives their payment from the payment provider. Merchants who operate their own sites, integrate payment platforms, or utilise e-commerce tools like Shopify or WooCommerce can generally expect to receive their payouts by the next business day or within a week. This timeline depends on the buyer's chosen payment method and the merchant's payout request timing.

Conversely, merchants who sell through online marketplaces may experience a fixed payout schedule, often consolidated to a single day each month to economise the process for the platform. The specifics of this schedule are typically outlined in the e-commerce marketplace’s Terms & Conditions, which merchants agree to upon registration. Subsequently, these funds are compiled and transferred to the merchant’s local bank account in India.

Key Indian banks involved in these transactions often include:


State Bank of India


Yes Bank

Bank of Baroda

Bank of India

Legislation and Compliance

After receiving international payments, it is crucial for Indian merchants to secure an FIRC (Foreign Inward Remittance Certificate) or FIRA (Foreign Inward Remittance Advice) to demonstrate that there has been a foreign inward remittance into an Indian bank account. This step is vital for complying with the legislative requirements established by the Reserve Bank of India (RBI) to prevent money laundering and fraud within the country.

To obtain an FIRC or FIRA, the Indian exporter must request the document from an Authorised Dealer Category 1 (AD1) bank that has processed their cross-border payment. As of 30 Apr 2024, the list of AD1 banks are as per the following document by the RBI⁴. However, the RBI also provides a list of such banks on their website5, which can be consulted by merchants to ensure they engage with the appropriate financial institutions for their compliance needs.

Obtaining these certificates is a mandatory part of the documentation process for Indian exporters, serving as proof of the legitimacy and legality of their international transactions. This not only fulfils regulatory requirements but also helps in maintaining transparent and secure financial practices.

With an understanding of the nuances of cross-border payments from the USA to India, merchants can optimize their checkout processes to appeal to American consumers and ensure smooth financial transactions. For those seeking an efficient payment gateway, consider Tazapay, which offers extensive coverage and local payment options in over 70 major markets, helping you reduce cart abandonment and improve cost-efficiency.

By keeping these steps and features in mind, you can choose a payment provider that significantly reduces cart abandonment and offers substantial time and cost savings. For those seeking an efficient payment gateway, choose Tazapay. With coverage in over 173 countries and local payment options in more than 70 major markets, Tazapay enables you to provide a seamless checkout experience that meets the needs of customers globally.

Contact us for your payment solutions and ensure your business thrives in the competitive landscape of international e-commerce.

1 India market’s 2024 forecasted export figures
2 India’s export reliance on the US (Business Standard) 

3 2023 Digital payment trends in the US
4 List of RBI approved AD1 banks as of 30 April 2024 

5 RBI website

Payments Resources
The Actual Costs in Using a Payment Gateway

Understanding the True Costs of Using a Payment Gateway

As the eCommerce market expands, so does the array of payment gateways available to merchants worldwide. Many are tempted by platforms advertising free or low-cost services, thinking they've secured a great deal. However, the reality of hidden costs of payment gateways often emerges only after transactions begin, potentially eroding profit margins.

Are you grappling with the complexities of global transactions? Consider Tazapay, your global payment gateway partner. With a network extending across 173 countries and a suite of fully digitised solutions for marketplaces and platforms, Tazapay helps you make the world your market.

To better understand this landscape, let’s explore the common costs and fees associated with payment gateways, particularly those involved in cross-border payments.

Platform Fees: Decoding the Cost Structures

Platform fees are relatively straightforward—they represent the costs of using a payment platform. Most reputable payment gateways impose some type of fee. These fees can vary, typically appearing as a combination of a flat fee plus a percentage of the transaction, or as a simple percentage-based fee.

For example, some payment gateways may charge fees such as $0.30 plus 2.9% per transaction, or $0.11 plus 3.95%, depending on the payment method. In contrast, Tazapay offers a more streamlined approach, charging either 1.8% or 3% for non-card transactions. To illustrate the differences in cost structures, consider the expense of a $50 transaction versus a $1000 transaction:

Using a $0.30 + 2.9% fee structure, a $50 transaction incurs a cost of $1.75, while a $1000 transaction costs $29.50.
However with Tazapay’s fee, starting from 0.8%, the same transactions would cost just $0.40 and $8, respectively.

Comparing these fee structures highlights significant differences. Opting for a straightforward percentage fee, such as Tazapay’s, can be more cost-effective, particularly for larger transactions where flat fees add up. This comparison underscores the importance of understanding payment gateway fees and how they impact your costs, especially in a cross-border payment gateway context.

Payment Gateway Costs

Understanding payment gateway costs is essential when considering the financial implications of various payment methods. These platforms may absorb fees, integrating them into overall platform fees, or pass them directly to consumers.

1. Bank Transaction Fees

Bank transaction fees play a significant role in the costs associated with direct bank payment methods like local bank transfers and bank redirects. Typically, local bank transfers might incur a surcharge for cross-bank transactions, while in-bank transfers often avoid these fees. Bank redirects, similar in operation to local bank transfers, usually carry minimal processing fees, influenced by national e-commerce policies.

For example, Singapore's PayNow service was free of transaction fees from its launch in July 2017 until January 2021, under a full subsidy. However, a nominal fee of SGD0.22 was introduced in 2022 to cover gateway pricing models adjustments.1

2. Card Processing Fees

Credit card processing fees are another critical aspect of payment gateway costs. Merchants may apply a surcharge for transactions using card networks like Mastercard or Visa. For instance, as of 2024, credit card processing fees for merchants range from 1.3% to 3.5%, depending on the card and transaction type.2

3. Wire Transfer Costs

The cost of wire transfers, particularly for international payments, is a notable part of gateway costs. Domestic wire transfers generally incur lower fees and are processed faster compared to international transfers, highlighting the variability of bank surcharges across different institutions.3

International Transaction Fees and FX Costs

When transactions span multiple geographic regions involving different currencies, international transaction fees and currency exchange costs, or FX costs, are inevitable. Payment gateways often manage these costs by adding a percentage-based fee over the market’s FX rate, or by setting their own buy and sell rates.

This adjustment allows payment gateways to cover the risks and operations involved in currency conversion, forming a significant portion of the payment gateway costs. Understanding these fees is crucial for businesses operating internationally, as they can impact the total cost of transactions significantly.

Gateway Setup Fees

Setup fees are a common initial cost associated with various online payment methods, including payment links and payment APIs. These fees often reflect the technical expertise required for integration and the complexity of the setup, especially in sophisticated online marketplaces and platforms.

In Malaysia, the variability in gateway setup fees is evident, with the top ten online payment methods charging anywhere from zero to RM300 per year.4 This range illustrates the diverse pricing models that payment gateways employ based on the services and technology they provide.

Making Informed Choices in Payment Gateways

With a clear understanding of the various payment gateway costs, including transaction fees, setup fees, and FX costs, you are now equipped to make more informed decisions when selecting a payment gateway that offers the best value for your money.

As you consider your options, take a look at Tazapay. Tazapay offers competitive platform fees at just 0.8 - 2.5% for non-card payments and 3.8% + $0.50 for card transactions. Moreover, it provides some of the lowest FX rates in the market and even promises to match any better rates you might find. Making the right choice for your payment gateway could mean the difference in creating significant savings and efficiency for your business operations.


1 2020 E-commerce Payments Trends Report: Singapore Country Insights (

2 Average Credit Card Processing Fees (

3 Wire Transfer Definition (

4 Top 10 Online Payment Methods in Malaysia for Ecommerce - ZCOM MY Blog

Payments Resources
Local Payment Methods in Europe: How Sofort Works In an International Payment Gateway

Europe is one of the largest E-Commerce markets in the world, with revenue projected to reach USD$632.70B in 2024 and a projected market volume of US$977.40bn by 2029 according to predicted annual growth rates.1 This region boasts dynamic digital markets, including Germany, which ranks as the 7th largest globally after China, US and UK.2 This impressive growth is driven by the flourishing digital economies, creating an environment ripe for robust digital payment infrastructures to prosper.

Local Payment Methods in Europe play a crucial role in this growth, and one of the standout systems is Sofort, a pan-European payment service provider. Sofort is integrated into international payment gateways, facilitating cross-border payments and supporting e-commerce businesses. By leveraging online payment solutions like Sofort, merchants can offer user-friendly payment options that cater to the diverse needs of European consumers, enhancing payment security and boosting online transactions.

What Is Sofort?

Sofort is a payment service provider based in Germany that enables users to make payments using their own online banking details, with transactions processed in real-time.3 Operating in over 13 European countries, Sofort's extensive reach is powered by Klarna Kosma’s open banking PISP-based infrastructure.4 This infrastructure allows Sofort to facilitate seamless online transactions and secure online payments across different banks, making it a key player in the European payment methods landscape.

The payment process with Sofort is similar to that of Trustly, as it involves direct banking facilitated via PISPs. This method allows users from various banks to make payments effortlessly, supporting the growing need for alternative payment methods and user-friendly payment options in the region. By integrating Sofort into international payment gateways, businesses can enhance their cross-border payments capabilities and offer reliable online payment solutions to their customers.

User Trends in Sofort

The 2023 European E-commerce Report reveals that 78% of all European internet users have purchased goods and/or services this year, with the overwhelming majority of those users coming from Western Europe.5 This indicates a strong preference for local payment methods in Europe, such as Sofort, among consumers. 

B2B e-commerce constitutes a significant portion of the European e-commerce market, holding a market share of approximately 63.1%. While B2B dominates, B2C e-commerce has also seen substantial growth, particularly during the pandemic, when over 87% of internet users in the region were e-shoppers in 2020. Although this number has slightly dipped to 85% this year, it still represents a robust market for online payment solutions.6 This trend underscores the importance of payment service providers like Sofort, which cater to the evolving needs of European consumers by facilitating secure online payments and enhancing online transactions.

The steady demand for user-friendly payment options and the growing preference for alternative payment methods suggest a positive outlook for Sofort’s business prospects in the region.

Benefits and Drawbacks of Using Sofort for Online Payment Gateways

While many strides in technological improvement have led to significant advancements in the online payment gateway market, none are perfect. It is crucial to consider their benefits and drawbacks before making a decision. Here are the pros and cons of using Sofort:


  • No Account Needed: Users can make payments directly from their bank account without having to create an account with Sofort, allowing for greater convenience. This feature enhances user-friendly payment options and streamlines online transactions.

  • Simple and Secure: Payments made via Sofort can be conducted anywhere within Sofort-supported countries. All transactions are encrypted with 256-bit encryption and require the user to input their PIN and TAN, ensuring both simplicity and payment security. This aligns with the increasing demand for secure online payments.

  • Little to No Cost: Users can make most payments with Sofort at no cost, while merchants integrating Sofort are only charged standard rates per transaction. This makes Sofort an attractive option for businesses looking to optimize their payment processing costs.


  • EU-only: Sofort is only available in the EU and primarily accepts Euros as the preferred currency. Additionally, only European banks are recognized by Sofort, meaning that any prospective user with a non-EU bank account needs to have an EU bank account to reap the benefits of Sofort. This limitation may impact businesses and users outside the EU looking for comprehensive cross-border payments solutions.

How Sofort Works in an International Payment Gateway

Sofort, being a pan-European payment gateway, is already an international payment gateway in some respects. It is supported in 12 countries: Austria, Belgium, Finland, France, Germany, Italy, Norway, Poland, Spain, Switzerland, The Netherlands, and the United Kingdom. This extensive connectivity enables cross-border payments and integration within international payment gateways across these major European markets.

However, this list, while comprehensive for the larger markets in each quadrant of the EU, does not cover all EU countries, nor does it include markets outside the EU. This limitation means that for transactions made outside Sofort’s supported countries, a third-party payment service provider is required as the international payment gateway to facilitate them.

This understanding of how Sofort fits within international payment gateways is crucial to optimise cross-border payments and cater to a diverse European customer base.

How Sofort Payments Work

Sofort payments normally involve the user accessing their bank account directly via Sofort and inputting their PIN and TAN to complete the checkout process. Once the user’s credentials are verified, the funds are simply transferred directly from the user’s bank account to the merchant’s account. 

In the event of an international transaction outside of the EU, the buyer would first pay through the merchant’s third-party payment provider of choice, selecting Sofort as the payment method at checkout. The payment process proceeds normally until checkout is finalised. After this, the funds are transferred from the user’s bank account into the third-party payment provider’s local bank account. Subsequently, the funds are moved into the payment provider’s international accounts before being disbursed into the foreign seller’s bank account. This multi-step process ensures that secure online payments are maintained even in complex international transactions.

What are the Fees Required in Using Sofort?

Currently, there are no fees for using some of Sofort’s payment services, including the app itself and certain BNPL options. However, as Sofort functions as a payment gateway, it employs various methods and rails to process transactions. Sofort’s transaction fees typically range from €0.10 + 1-2% to €0.25 + 3.29%.

When using Sofort as a payment method through a third-party payment service provider acting as an international payment gateway, additional costs such as setup fees, FX costs, and potential hidden costs may apply. These costs can impact the overall payment processing expenses, making it essential for businesses to consider them when planning their cross-border payments strategy.

Understanding Sofort’s fee structure is crucial for businesses aiming to optimise their online payment solutions and enhance their e-commerce payments strategy. By leveraging Sofort’s cost-effective transaction methods, businesses can offer user-friendly payment options to their customers while maintaining secure online payments.

How can Tazapay Help?

To further improve your prospects in the European market, consider partnering with a robust and reliable third-party payment provider like Tazapay. We offer access to over 173 countries and are secured with 256-bit encryption, ensuring that every transaction is safe and secure. By integrating Tazapay as your international payment gateway, you can lower your transaction fees, enhance your payment processing capabilities and effectively manage cross-border payments.

Contact us to find out more


  1. Revenue in Europe’s eCommerce Market - Statistica 
  2. Ecommerce Market Size by Country [2023 Update] - Oberlo
  3. Sell with SOFORT - SOFORT
  4. About us - SOFORT
  5. European E-Commerce Report 2023
  6. The eCommerce Market in Europe: Trends, Growth and Statistics -

Payments Resources
PayNow: Revolutionizing Singapore's Digital Payment System

In recent years, Singapore has rapidly evolved into a digital-first economy, with the island nation at the forefront of adopting innovative financial technologies. The emergence of digital wallets has signaled a shift in consumer preferences, with predictions suggesting they might soon eclipse traditional card payments. Central to this digital revolution is PayNow, a system that has transformed the way transactions are conducted in Singapore, promising a seamless, efficient, and secure method of payment.

What is PayNow?

Developed under the auspices of the Association of Banks in Singapore (ABS), PayNow is more than just a payment method; it's a cornerstone of Singapore's ambition to become a fully cashless society. This real-time payment platform enables users to send and receive money instantly using just a mobile number, NRIC/FIN, or UEN number, integrating seamlessly with the Singapore Quick Response Code (SGQR) for QR code payments. Supported by a consortium of major banks and financial institutions under the regulation of the Monetary Authority of Singapore (MAS), PayNow is a testament to Singapore's cohesive approach to financial innovation.

The Soaring Adoption of PayNow

Updating the statistics with the latest information, PayNow's trajectory in Singapore showcases the nation's accelerated embrace of digital payments. In 2020, Singapore witnessed a dramatic surge in real-time transaction volumes, reaching 138.38 million, a 48% increase from 2019. The value of these transactions also saw a significant jump of 40%, escalating from US$110 billion in 2019 to US$154 billion. The growth trend is projected to continue, with real-time transactions expected to climb at a compound annual growth rate (CAGR) of 23.2% to hit 392.94 million by 2025. This would elevate the total transaction value at a CAGR of 17.74%, underlining the increasing significance of digital payments in Singapore's financial landscape​ (Fintech Singapore)​.

The recent expansions into real-time cross-border payments further underline PayNow's evolving role in the financial ecosystem. 2023 marked a pivotal year as Singapore initiated real-time cross-border payment connections with neighboring countries. These developments, facilitated by the Monetary Authority of Singapore (MAS), aim to enhance convenience for cross-border fund transfers and small-value payments. The introduction of cross-border QR code payment linkages with Malaysia and Singapore, along with the establishment of a cross-border linkage between Singapore’s PayNow and India’s UPI, highlights the city-state's commitment to fostering financial inclusion and bolstering the ASEAN economy through improved payment connectivity​ (Fintech Singapore)​.

Unveiling the Benefits and Addressing the Drawbacks


  • Real-time Payment Processing: The hallmark of PayNow is its ability to process payments in real-time. This immediacy is invaluable for both personal and business transactions, where speed can often be of the essence.
  • Universal Accessibility: PayNow's integration with a broad network of banks ensures that users can make payments across different financial institutions, breaking down the barriers traditionally associated with bank-specific platforms.
  • Stringent Security Measures: Security is paramount in digital transactions, and PayNow upholds the highest standards. Regulated by MAS, the platform employs robust security protocols, offering users peace of mind with each transaction.


  • Technology Dependency: The reliance on smartphones and internet connectivity can be a limiting factor for some segments of the population, potentially excluding those without access to smart devices.
  • Privacy and Safety Risks: The convenience of using personal identifiers as payment addresses comes with potential privacy risks. There's also the ever-present threat of phishing and fraud, underscoring the need for constant vigilance.
  • Complicated Dispute Resolution: Navigating the process for resolving transaction disputes can be daunting, requiring engagement with recipients and financial institutions which can be time-consuming and frustrating.
pros and cons of Paynow

Expanding Horizons: PayNow in International Transactions

While PayNow excels in facilitating local transactions, its integration with international payment systems like Tazapay represents a significant leap forward. This synergy allows Singaporean businesses and consumers to participate in the global marketplace more effectively, providing a streamlined process for cross-border transactions. Through platforms like Tazapay, users can easily transfer funds internationally, opening up new avenues for commerce and personal transactions alike.

Tazapay: A Closer Look

Tazapay stands out by offering a simplified and secure method for leveraging PayNow in international transactions. By facilitating the transfer of funds to Tazapay's Singapore account via PayNow, and then on to the recipient's foreign account, it bridges the gap between local and global payment ecosystems. This process not only enhances the utility of PayNow but also offers businesses a competitive edge in the international market.

Understanding the Financial Implications

The cost-effectiveness of PayNow for local transactions is clear, with nominal fees and a structure that promotes accessibility. However, the dynamics shift when considering international transactions. The use of third-party platforms like Tazapay introduces additional costs, albeit often lower than traditional banking fees. For businesses looking to expand globally, understanding these financial nuances is crucial in selecting the most efficient payment methods.

The Path Forward with PayNow

As PayNow continues to evolve, its potential to shape Singapore's digital economy grows ever more significant. Its integration with international payment gateways heralds a new era of financial connectivity, enabling Singapore to further solidify its position as a global financial hub. The ongoing developments in digital payment technologies promise to enhance PayNow's offerings, ensuring that Singapore remains at the forefront of the digital payment revolution.

For businesses and individuals alike, the journey towards a cashless society is filled with opportunities. Embracing platforms like PayNow and Tazapay not only facilitates easier transactions but also opens up new horizons for global engagement. As we look to the future, the role of digital payment systems in driving economic growth and fostering global connections cannot be underestimated.

In conclusion, PayNow's journey from a local payment solution to a key player in international transactions encapsulates the essence of Singapore's digital transformation. Its continued adoption and integration with global payment systems underscore the importance of digital innovation in today's interconnected world. As we embrace these technologies, the prospects for seamless, secure, and efficient transactions are boundless, heralding a new chapter in the story of digital payments.

Payments Resources
Local Payment Methods in Indonesia: How Dana Works in an International Payment Gateway

The eCommerce scene in Indonesia is a lucrative and burgeoning market, evident with its current placement as the 10th largest eCommerce market in the world with a revenue of USD 52.9301 B this year, putting Italy in 9th place¹. The market is certainly a healthy one with a CAGR of 10.4% and has contributed 17% to the global eCommerce market growth rate¹.

This makes Indonesia a prime choice market for any prospecting eCommerce business looking to venture into the international marketspace, especially with the highly competitive market they currently have². Therefore, what better way to localise in such an environment than with one of the most popular local payment methods they have today? Let’s take a look at Dana, and how it functions in an international payment gateway.

What Is Dana?

Dana is a digital wallet, or e-wallet, service that is popular in Indonesia and has been working together with Bank Indonesia to help advance the country’s aims of both integrating technology into their financial services, and building up the country’s digital economy³.

As a digital wallet, it allows users to make payments with either their saved cards, e-wallet funds, or dynamic QR codes.³

User Trends in Dana

Indonesia’s digitalisation efforts have been successful thus far, based on the drastic increase in the country’s internet penetration rate from 69.8% in 2020 to 75.47% in 2022². This is evidently reflected in both the aforementioned high competitiveness in Indonesia’s eCommerce market, but also in Dana’s own rapid climb in popularity, reporting a jump from 93 million users in 2021 to over 135 million users in 2022–a 145% increase⁴.

However, due to the country’s vast landmass and numerous scattered islands, low banking and internet penetration remains an issue in those remote regions as difficulty in building the infrastructure to support digital payments is still high².

Benefits and Drawbacks of Using Dana for Online Payment Gateways

No payment gateway is perfect, and each has their own sets of benefits and drawbacks. Here are Dana’s pros and cons:


  • Convenient: So long as a user has a smartphone and an internet connection, they can make transactions just about anywhere. Users can also use Dana to pay their bills, send money, and withdraw money.
  • Safe and Secure: Dana boasts the latest in payments security to ensure that their transactions are as risk-free as possible.
  • Simple and Easy: Making payments with Dana requires no further steps than scanning the digital wallet’s generated QR code.


  • Internet Reliance: Dana’s inherent nature being a digital wallet also means that it is largely inaccessible to the more remote regions of the country that have yet to receive the proper infrastructure needed to have stable internet connectivity.

How Dana Works in an International Payment Gateway

At the time of writing, Dana has yet to expand beyond Indonesia so any cross-border transactions involving it must use a third-party payment provider to act as the international payment provider. To do this, a user would need to use one such payment provider that offers Dana as a payment option upon checkout. From there, proceed to conduct the transaction as one normally would in a local transaction with Dana. Once the payment is made, the funds will be transferred from the third-party payment provider’s ID account to one of its international accounts before being disbursed to the foreign seller.

What are the Fees Required in Using Dana?

Presently, Dana provides each user with an allowance of 10 free withdrawals, charging an administration fee of IDR 4,500 per withdrawal after that³. Dana also charges administration fees of IDR 1,500 per top up, IDR 7,500 per train ticket purchased via the Dana app, and IDR 2,500 per bill payment³.

However, since Dana has yet to expand beyond local borders, any fees charged for cross-border transactions will be the usual costs that come with using third-party payment providers, such as setup fees, and FX costs.

Now that you know more about Dana, you can now think about localising into Indonesia with more confidence. However, it wouldn’t hurt for you to consider taking a look into robust payment gateways that offer a slew of localisation options like Tazapay to help increase your odds of success.



  1. eCommerce Market Indonesia - Data, Trends, Top Stores |
  2. Indonesia: e-commerce sites by monthly traffic 2022 | Statista
  3. DANA - DANA is the way to pay whenever, wherever
  4. DANA Digital Wallet Experiencing Rapid Growth: Reach 135 Million Users in 2022 (

Payments Resources
Synchronous vs Asynchronous Payment Methods: How They Work in an International Payment Gateway

The savvy e-Commerce merchant knows that when it comes to payment methods, they are spoiled for choice. Knowing how many to take on, and the suitability of each in any given market, is a crucial matter entirely that could spell the difference between success and mediocrity in the sphere of e-Commerce. Generally speaking, it is good business sense to have multiple localised payment methods on hand to both increase your odds of successfully integrating into the local market ecosystem and reducing the risk of chargeback fraud.

The overall B2B e-Commerce market is also projected to be continuing its healthy upward trend of growth where it has a reported global market value of 17.9 trillion USD in 2021– a roughly 120% increase from its previous 14.9 trillion USD in 2020, thus making at least 5 times larger than the global market size of the B2C e-Commerce market¹. This tremendous market size and growth is further compounded by the overall increase in digital shoppers worldwide, sitting at nearly four billion consumers in 2021².

This goes to show that the e-Commerce market sphere is not only thriving, but also intensely competitive as well as it is evident that the number of digital businesses and digital consumers will only keep increasing. Therefore, knowing which payment methods to choose from and how they function is key, and this includes knowing how to distinguish between synchronous and asynchronous payment methods.

What Is Synchronous Payment?

Synchronous payments refer to payments that are processed in real-time or near-instantaneously. This usually means that payments made using synchronous payment methods are fast and convenient at the cost of high transaction fees and/or greater dispute resolution difficulty. Examples of synchronous payment methods include card payments, internet banking, real-time payments, and bank redirects.

What is Asynchronous Payment?

Asynchronous payments refer to payments that are processed with some length of time between the moment of transaction and the resolution of the transaction. The time it can take for an asynchronous payment to process a transaction can take anywhere from a few minutes to a few days, depending on the payment rail used. That said, asynchronous payment methods also have strong brand trust behind them and are typically more secure and readily available than most synchronous alternatives. These asynchronous payment methods include local bank transfers, mobile money, voucher payments, and wire transfers.

How Does Synchronous Payment Work in a Payment Gateway?

Most synchronous payments are powered by a robust digital payments infrastructure to help facilitate the protocols and uniformity needed across banks to make synchronous payments possible, such as Singapore’s inter-bank payment system with PayNow, or Sofort’s utilisation of Klarna Kosma’s PISP-based infrastructure in Europe.
Generally speaking, a synchronous payment in a payment gateway would go as follows:

  1. The client uses their synchronous payment method of choice upon checkout
  2. The payment itself is then processed in near real-time through the internet and immediately reaches the merchant’s bank account, disbursing the funds.
  3. A notification is sent to both the client and the merchant that the transaction is successful within the span of a few seconds from the moment the payment was made.

How Does Asynchronous Payment Work in a Payment Gateway?

Asynchronous payments are usually synonymous with more conventional payment methods and/or hybrid payment methods that intend to reach out to the unbanked population of a given market, such as voucher-based payments in Latin America. While they may take more time to process, their security cannot be understated.

This is how asynchronous payments are processed in a payment gateway:

  1. Upon checkout, the client opts for their asynchronous payment method of choice.
  2. Once the payment is made, the payment processor must confirm that the receipt of funds has been received before the transaction is processed.
  3. The funds are then moved from the client’s bank account into the merchant’s bank account within a few minutes or days depending on the payment rail.
  4. Both the client and the merchant are notified of the successful transaction.

Now that you know more about the difference between synchronous and asynchronous payment methods, you can make smarter decisions the next time you opt for a payment method to adopt into your e-Commerce business. Though, with Tazapay, you can skip the ruminating phase altogether and enjoy access into more than 80 localised markets at your fingertips with just a single click. Don’t delay, try Tazapay today!



  1. B2B e-Commerce - In-depth Market Insights & Data Analysis | Statista
  2. Digital Shopping Behaviour | Statista
Payments Resources
Mastering Card Authorization to Unlock Cross-Border eCommerce Growth

Introduction: Mastering Cross-Border eCommerce Transactions

In the dynamic realm of cross-border eCommerce, seamless payment experiences are the cornerstone of successful international sales. Despite the growing diversity of global payment preferences, credit cards remain a universal staple.

Yet, international retailers face a unique challenge: optimizing card authorization rates to minimize checkout abandonment and maximize global customer satisfaction. This article delves into strategies for boosting card authorization rates, a crucial element for thriving in the competitive landscape of cross-border eCommerce.

Understanding Card Authorization Rates in a Global Context

Card authorization rates play a pivotal role in ensuring the smooth completion of cross-border transactions. Defined as the percentage of transactions approved during the authorization phase, these rates are critical for maintaining a frictionless payment experience for customers worldwide.

High authorization rates signify a seamless checkout process, essential for building trust and loyalty among international shoppers.

The Global Challenge: Low Authorization Rates in Cross-Border eCommerce

Low authorization rates can significantly impede cross-border sales, leading to lost revenue and customer dissatisfaction on a global scale. The impact of failed payments is magnified in international eCommerce, where trust and reliability are paramount.

Understanding the hidden costs of these failed transactions, particularly in the context of selling high-value goods across borders, is crucial for any eCommerce platform aiming for international success.

Key Factors Affecting Authorization Rates

The complexity of cross-border payments introduces unique challenges affecting authorization rates:

  • Evolving Data Laws: Global data protection regulations can influence authorization success, with slow adaptation potentially hindering international transactions.
  • Fraud Screening in Diverse Markets: Balancing fraud prevention with approval rates is critical, especially when dealing with a variety of international banking systems.
  • Challenges of Cross-Border Payments: Currency mismatches and bank recognition issues are more prevalent in international transactions, emphasizing the need for a robust payment provider capable of localizing the payment process.

Strategies to Improve Card Authorization Rates

Improving card authorization rates for cross-border eCommerce requires understanding and addressing the specific needs of an international clientele:

  • Know Your Global Customer Base: Tailoring payment processes to fit the cultural and regulatory landscape of each market can significantly improve authorization rates.
  • Optimize for International Transactions: Accurate meta-tagging and compliance with global data laws are key to minimizing declines.
  • Embrace Payment Diversity: Offering a range of payment options, including BNPL and installment plans, can cater to varying international customer preferences, reducing the likelihood of declined transactions.

The Role of Payment Providers in Enhancing Authorization Rates for Cross-Border eCommerce

In the intricate dance of cross-border eCommerce, where each step from browsing to payment transcends borders, the choice of a payment provider becomes pivotal. The right partner, like Tazapay, doesn't just facilitate transactions; it elevates them, ensuring high authorization rates that are crucial for international success. Here's how:

Strategic Global Partnerships: Tazapay's vast network of issuer and network partnerships shines brightest in the realm of cross-border transactions. These strategic alliances ensure that payments are not only secure but also highly likely to be authorized, regardless of geographical and financial boundaries.

Localised Payment Solutions: Understanding and navigating the payment preferences of different regions can be daunting. Tazapay simplifies this, offering localized payment solutions that resonate with customers worldwide, significantly boosting authorization rates for international sales.

Advanced Fraud Detection Tailored for Global Commerce: The balance between preventing fraud and approving legitimate transactions is particularly challenging in cross-border eCommerce. Tazapay employs sophisticated fraud detection mechanisms that are fine-tuned for the global stage, minimizing unnecessary declines while protecting your revenues.

Compliance and Adaptability Across Borders: As global data laws and payment regulations evolve, staying compliant is key to maintaining high authorization rates. Tazapay's proactive approach ensures your payment processes remain on the right side of regulations, adapting swiftly to changes that could impact international transaction success.

By partnering with Tazapay for your cross-border eCommerce needs, you tap into a world where payment processes are not just transactions but strategic tools for global market expansion. Tazapay's emphasis on high authorization rates through strategic issuer and network partnerships offers businesses a clear path to international growth and customer satisfaction.

 Unlocking the Potential of International eCommerce

Optimizing card authorization rates is a vital strategy for enhancing the cross-border eCommerce experience. By addressing the unique challenges of international payments and partnering with a provider like Tazapay, businesses can unlock new levels of success in the global market.