DBS Launches Direct Debit Payment Service

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Secured And Timely Collection For Online Businesses

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E-Payment Option Is Open To All Bank Customers With Internet Access

SINGAPORE, OCT 6, 2000 - DBS Bank today launched an innovative e-solution, known as Direct Debit Payment, or d2pay, allowing online payments at e-commerce sites. With d2pay, customers are able to initiate payments online to pay merchants for goods or services purchased via the Internet. The authorised amount will be debited against their bank accounts on a real-time basis. d2pay is the second in a series of e-payment services launched by DBS Bank.

Using DBS Bank's Internet banking services, d2pay requires customers to have Internet access, while businesses must have their own websites offering goods and services. The d2pay service offers e-payment capabilities, e-notification of the transaction result, and facilities for automated settlement.

Speaking at the launch event, DBS Bank's Senior Managing Director, Philippe Paillart said that DBS sees a window of opportunity in the way that Internet services permeate all levels of society.

"Increasingly, the Internet is used, more and more, as an e-marketplace to meet the personal and work-related needs of individuals. Businesses - from SMEs to multinational corporations - capitalise on it to gain competitive edge and to expand their markets," Paillart said.

Managing Director and member of the Bank's E-payment Working Group, Bastari Irwan, added that the d2pay service would be a boon for businesses and their customers, due to the simple interface. "This means businesses no longer need to invest in developing their own e-payment module, which is complex because it involves financial transactions, as well as being technology and capital intensive," he said.

The development of the d2pay e-payment service reflects the DBS philosophy that all customers should be able to benefit from the reach, speed and convenience of the Internet. Both customers and merchants using this e-payment service will only be required to do a one-time registration.

Once registered, DBS customers may instruct the bank to debit their accounts to settle payments for goods or services transacted via the Internet. Customers gain from the convenience of a round-the-clock payment service, which is simple to use, reliable and secure. Instant e-notification updates customers on the status of every transaction.

Merchants benefit as the d2pay service is a risk-free collection method with no chargebacks. The confirmation of payment is immediate and merchants will be sent reports electronically consolidating the transactions at the end of the day. The paucity of e-payment solutions makes d2pay an obvious choice not only for merchants but also for online businesses still without an e-payment module or looking to offer more e-payment options to their customers.

"Investments in the latest reliable cutting-edge technologies and DBS' adoption of strictest security measures have contributed to the robustness of this e-banking platform. The combination of these qualities, security, cost-effectiveness, convenience, reliability and automated direct settlements, ensures that the DBS family of e-payment solutions is in keeping with the new economy needs," Bastari said.

A typical transaction cycle using d2pay begins with the customer authorising the direct debit transaction from his or her DBS account at a merchant's online site. The customer using this service may be an individual or a corporate representative.

Upon authentication, based on customer's Internet Banking user ID and PIN, the Bank will debit the stipulated amount, notify the customer of the result of the transaction and re-direct the customer back to the merchant's website.

For the merchant, a secure channel is used to send the transaction data over to DBS. The merchant is immediately notified of the payment result and at the end of the day, DBS will send reports electronically consolidating the day's transactions.

At today's launch event, the Bank held a signing ceremony with its six pioneer merchants who will be able to offer their online shoppers the direct debit payment option using the d2pay service for their respective e-commerce online businesses. These six merchants are eNabled Homes Pte Ltd, FarEastFlora.com, Grocer21.com Pte Ltd, MPH Online Pte Ltd, Mworx.com.sg Pte Ltd, and 8apples.

The d2pay service complements DBS' earlier roll out of another e-payment solution. Known as c2pay, this solution is for credit and debit cardholders, and was launched in May this year.