UOB Launches QR-Code Based mCollect Digital Solution

United Overseas Bank has introduced a UOB mCollect service which is a solution allowing digitization of payments through QR-codes. The QR-based services enable digitization of the cash-on-delivery model and buyers can collect their payments through PayNow Therefore this new digital payment service will help in reducing cash handling risks by businesses as well as enhance the flow of cash.

According to the bank, there are over two-thirds of its corporate clients that still get payments in cash from buyers considered as small businesses. Therefore this means handling cash for the businesses which can sometimes lead to avoidable fraud and security risk. Equally, with the manual system businesses have to commit significant resources in managing manual processes like the verification of collected payments as well as the reconciliation of payments versus invoices. The mCollect solution makes things easier and businesses do not have to go through all the hassle.

It is easier to integrate the solution within the business’ current enterprise resource planning solution. If your business does not have an ERP system then you can access UOB mCollect through UOB BizSmart. This is the bank’s incorporated digital suite that enables businesses to manage their core business operations.

Benefits UOB mCollect

The UOB mCollect allows employees to generate QR-codes on through a mobile device app. The customers can then scan the codes for them to make payments. Immediately after the customer completes the payments the funds are then credited to the account of the supplier through PayNow. After completion of a transaction, the supplier will receive a notification informing them about the same.

The upside of the UOB mCollect is that all payments collected via the service are equally reconciled instantly. This, therefore, reduces the time one could have spent processing the transaction manually. This cuts down the time required in managing accounts receivable by almost half.

Equally collecting payments instantly helps in enhancing cash flow especially for businesses that grapple with payment delays. Therefore enhanced management of cash flow will enable the company to be in control regarding billing cycles, payment amounts, and payment dates.

Considering payment is instant it thus saves time as well as minimizes the manual and administrative processes that could otherwise be involved in cash collection. This also helps in preventing fraud risks that might be associated with the collection of payments. As a result, the business gets to enjoy secure and instant payments.

Having a cashless system can also help in strengthening the relationship with clients for the supplier. Nowadays people want to deal with cashless and paperless payment systems because it is effortless to keep track of the transaction. It is easier relative to manual processing of transaction which can be tedious because of tons of paperwork involved.

According to UOB’s Group Transaction and Wholesale Banking Head SO Lay Hua, there is a lot of progress made in advancing cashless systems for businesses. she added that there is a shortfall in terms of the payment collection process for businesses especially those having cash-on-delivery payment systems. However with the UOB mCollect now businesses do not have to worry about the challenges associated with the handling of physical cash. The payment solution will help the businesses in streamlining the reconciliatory process.

How is UOB mCollect Impacting the financial and e-commerce market

In Singapore, the cash-on-delivery model is very common and most small and medium-sized enterprises use the system. This is despite the risks associated with the handling of cash and the time it takes to process payments. There are few payment options in the business-to-business space and even cheques equally need manual reconciliation which takes much time. Therefore the UOB mCollect payment solution is revolutionizing how businesses receive payments.

UOB mCollect system transforming payment-on-delivery

So far food processing and packaging and meat supplier company Boong Food has piloted the use of the payment collection system. Boong Food is part of Boong Group and it supplies more than 800 clients in Singapore. Steve Wong the CEO of Boong Group stated that the company makes several deliveries each day and they encounter challenges when collecting payments. He said that usually they get paid in cash and the company’s salespeople spend a lot of time verifying the amount paid. Equally, they have to verify payee details as well as tally all payments at the end of the day.

According to Wong, the manual process takes up significant time and resources and it is prone to mistakes. However, the UOB mCollect has revolutionized how the company carries transactions with its customers. Salespersons can now digitally collect payments and thus has streamlined the collection process. Wong indicated that the use of the service has helped them minimize the time for delivery. He equally indicated that the finance team has an easy time because payments collected through the UOB mCollect solution are reconciled automatically against the invoices.

Following how revolutionary the UOB mCollect has been for Boong Food the company has indicated that it will continue working UOB to adopt the solution for its other businesses.

UOB BizSmart system enhancing business processes

Another company that has benefitted from this transformative payment system is Goodair. The company supplies air-conditioning units for commercial, industrial and residential properties. According to Goodair finance manager Mabel Wan, they have adopted the UOB BizSmart in managing processes like accounting, invoicing as well as payroll.

Wan indicated that with them using UOB mCollect they can generate a PayNow QR that they can embed to invoices that they issue to customers. Therefore this has enhanced the collection of payments instantly by the company’s service technicians. The finance manager further added that the UOB mCollect has improved the time they take to receive their payments which has in returned enabled the company to enhance its cash flow

Cashflow management is a challenge that most SMEs are grappling with because of delays in payment. UOB mCollect aims at bridging the gap in e-commerce. Other banks have also launched digital payment solutions and are encouraging businesses to move to e-payments. For instance, OCBC and DBS increased their cheque fees recently in a bid to encourage businesses to use digital payments. They are also offering discounts to businesses switching to e-payments.

(By Neha Gupta)

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