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Payments

CDL Embraces E-Payments: A Shift from Traditional Cheques

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City Developments Limited transitions from physical cheques to e-payments, improving efficiency for property transactions.

In Singapore, the process of purchasing property traditionally involved homebuyers issuing physical cheques, necessitating developers to carry out manual verification for every transaction. This method has been notoriously slow and cumbersome for everyone involved. City Developments Limited (CDL) has decided to innovate by adopting e-payment solutions, leading to enhanced efficiency in their operations.

The E-Payment Journey Begins

CDL's journey into the digital payment landscape commenced in 2018. This was when the developer implemented the FAST (Fast and Secure Transfers) system for homebuyers purchasing units at The Tapestry in Tampines. This early adoption laid the groundwork for CDL's later integration of the Electronic Deferred Payment (EDP and EDP+) systems, introduced in 2025, turning out to be a prescient move.

A Shift in Payment Culture

As e-payment options have become increasingly accessible and popular, the use of cheques has dramatically diminished. By January 1, 2027, all banks in Singapore will cease processing cheque payments denominated in Singapore dollars, signaling a significant shift in the payment culture of the country.

In light of this impending transition, there has been a concerted push for both businesses and consumers to embrace e-payment alternatives like EDP and EDP+. These systems facilitate deferred payments, allowing users to fulfill contractual obligations—whether it’s home purchases for individuals or supplier payments for companies—without relying on future-dated cheques.

Understanding EDP and EDP+

Launched on July 28, 2025, both the EDP and EDP+ are designed to allow users to make deferred payments. They complement existing payment systems like PayNow, GIRO, FAST, and MEPS+. However, they differ primarily in when funds are deducted from the payer's account.

  • EDP: Funds are only deducted when the payee requests the payment.
  • EDP+: Funds are deducted immediately upon issuance, eliminating the risk of insufficient funds for payees.

The Advantages of EDP+

For CDL, the decision to shift to EDP+ was a natural evolution of their digital payment strategy. The company achieved a successful transformation by collaborating effectively with its banking partners to adapt to the various processing methods of incoming EDP+ payments.

Among the numerous benefits realized through this transition are:

  1. Lower Risk: Immediate deduction upon issuance protects against non-payment due to insufficient funds.
  2. Easier Tracking: Electronic payment details facilitate rapid identification and accurate matching of transactions.
  3. Sustainability: Reducing reliance on physical cheques aligns with CDL's commitment to sustainability and modernization.

Benefits for Homebuyers

The implementation of EDP+ not only benefits CDL but also enhances the payment experience for homebuyers. With streamlined electronic payments, buyers gain greater flexibility and efficiency in managing their transactions.

Chia Ngiang Hong, CDL’s group general manager, highlights that EDP+ provides a faster and smoother payment experience. Homebuyers can easily make payments digitally, receiving immediate notifications that keep them informed about their transaction status.

This digital transition not only speeds up the process but enhances record-keeping, allowing buyers to monitor their payments effectively.

Forward-Thinking for Developers

CDL envisions a future where the property sector extensively adopts EDP+, paving the way for a cheque-free environment. As developers adapt to this system, they encounter several advantages.

A notable benefit is the reduced risk of payment failures. With immediate fund deductions, administrative challenges like bounced cheques become a thing of the past. This improvement leads to more reliable cash flow forecasting, bolstered by real-time notifications from the EDP+ platforms.

In conclusion, the move towards e-payments represents a pivotal advancement for CDL, homebuyers, and the real estate sector as a whole. The transition fosters a more efficient, reliable, and environmentally friendly approach to property transactions.

For further information on transitioning to e-payment systems, visit the Association of Banks in Singapore’s website or contact your bank representative.

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