Wrongful PayNow Transfers to Phone Numbers Belonging to Previous Subscriber

Mr Gan Thiam Poh asked the Prime Minister and Minister for Finance (a) whether the Ministry monitors the number of cases where payment have been wrongly credited to the previous subscriber of a mobile phone number via PayNow; (b) if so, in 2023, how many cases of payment have been wrongly credited after the mobile phone number has been recycled for use; and (c) whether the Ministry will require PayNow accounts linked to mobile phone numbers to be unlinked once there is a change of the mobile phone subscriber.

The Monetary Authority of Singapore (MAS) does not collect data on the number of cases where PayNow transfers are wrongly made to the previous user of a mobile number. However, MAS has set out guidance for financial institutions (FIs) to follow, where funds are erroneously transferred to an unintended recipient. In such instances, the sender’s FI should engage the recipient’s FI to inform the unintended recipient, so that a refund can be initiated.

The Member also asked if the Government would require PayNow accounts linked to mobile phone numbers to be unlinked whenever a customer changes his mobile number. Banks will not be aware of any change in their customers’ mobile numbers linked to their bank accounts through PayNow, unless notified by the previous or new user of the mobile number. This is similar to the update of addresses or other contact details of a customer.

However, banks have processes in place to deal with a situation where a mobile number has been “recycled” and subscribed to by a new user, while the previous user has not delinked the number from his bank account. Because a given mobile number can only be linked to one bank account through PayNow at any point, a new user of the number who tries to register the number for PayNow will then realise that the number is still registered by the previous user for PayNow purposes. The new user should notify his bank immediately and the bank will reach out to the previous user’s bank expeditiously to initiate the delinking of the number from the previous user’s account.

In the meantime, the new user should not use this mobile number to initiate or receive PayNow transfers. Customers who have changed their mobile numbers, including the numbers used for PayNow, are also encouraged to update their banks without delay.

MAS will monitor the issue and assess if enhancements to the process for linking and delinking new phone numbers are needed.