What Restaurants Should Know About SGQR and Transaction Costs

What is SGQR?

Alright, let’s break it down! The Singapore Quick Response Code, or SGQR for short, is a pretty clever system rolled out in 2018 to make digital payments a breeze across the island. Imagine this – all those different payment QR codes squished together into one neat, tidy label. That’s SGQR doing its thing, making life easier for both merchants and their customers. Big shoutout to the Monetary Authority of Singapore (MAS) for pushing this initiative to create a more efficient and inclusive e-payment landscape.

For all the restaurant and F&B business owners out there, wrapping your head around SGQR is a must. By adopting this system, you can slap one QR code on your counter that supports various payment options like PayNow, NETS, GrabPay, and a host of others. It helps cut down the clutter of multiple codes while catering to your customers’ payment preferences. And just to give you an idea of how well this has been received, as of 2022, the Monetary Authority of Singapore reported that over 210,000 SGQR labels were out in the wild across different sectors, including F&B. That’s some serious traction showing how successful this initiative is at honing in on convenience for everyone involved.

Read more: Understanding SGQR: Revolutionizing Payments in Singapore's Eateries (eats365pos.com)

Benefits of SGQR for Restaurants

Now, let’s talk about why hopping on the SGQR train could be a game-changer for your restaurant:

• Simplified Payment Process: Picture this – one single QR code that lets your customers pick their preferred payment app. It smooths out their dining experience, and who doesn’t want that?

• Operational Efficiency: Forget juggling multiple payment terminals or QR codes. With SGQR, your operations can streamline, letting your staff focus on what they do best - serving customers!

• Cost Savings: The Singapore government made a nifty move in 2020 to waive transaction fees for hawkers using PayNow QR and SGQR until the end of 2024. While restaurants might not get the same treatment directly, you still stand to save with lower transaction fees across the board thanks to SGQR’s flexibility.

• Enhanced Customer Satisfaction: Simply put, providing a seamless payment experience caters to the growing number of consumers who prefer going digital, likely boosting customer loyalty and encouraging repeat visits.

Understanding Transaction Costs

Now, let’s dive into a topic that can get a tad murky – transaction costs. These are the fees businesses incur when processing payments and can differ by payment method. For restaurants, you might run into a few of these costs:

• Merchant Discount Rate (MDR): This one’s a percentage of each transaction that goes to the payment service provider. For example, credit card transactions can hit MDRs between 1.5% and 3%, while digital wallets like GrabPay hang around 3.3%.

• Fixed Transaction Fees: Some payment providers charge a set fee for each transaction, which can add up pretty quickly if your volume is high.

• Setup and Maintenance Fees: Think about the initial investment needed for setting up your payment systems, plus those ongoing fees for all the upkeep and software updates.

Getting a handle on these costs is essential for restaurant owners to keep expenses in check and select the most cost-effective payment solutions.

Read more: What is QR Code Payment? All You Need to Know about QR Code Payment for Restaurants (eats365pos.com)

Minimizing Transaction Costs with SGQR

So, how does SGQR help you trim those transaction costs? 

• Consolidated Payment Processing: Since SGQR knits together various payment methods into one single QR code, you can ditch the need for multiple terminals, which means lower hardware and maintenance costs.

• Competitive Transaction Fees: With SGQR, you get access to various payment schemes. PayNow is a standout here, as it operates on a direct bank-to-bank transfer basis, usually racking up lower processing fees compared to old-school card transactions. This can definitely lean the scales in favor of your pocket.

• Government Incentives: Remember that nice little subsidy from the Hawkers Go Digital programme? It waives transaction fees for hawkers using PayNow QR and SGQR until December 31, 2024. Sure, the subsidies for restaurants may differ, but overall, the reduced transaction fees within the SGQR umbrella can still offer a significant boost to your bottom line.

By jumping on the SGQR bandwagon, restaurants can not only provide a variety of payment options to their customers but also keep those pesky transaction costs under control.

Beyond SGQR: Other Considerations for Digital Payments

While SGQR definitely lays the groundwork for a seamless payment system, restaurant owners should keep a few other ducks in a row when navigating the digital payment maze:

• Customer Preferences: Keep your ear to the ground about what payment methods resonate with your target customers. Some might lean toward mobile wallets - particularly the younger crowd, while older diners might feel more comfortable sticking to traditional card payments.

• Security Measures: It’s a must to ensure that all your digital payment systems meet industry standards for protecting customer data. After all, safety first!

• Staff Training: Think of it as an investment. Equip your team with adequate training to handle digital payments, troubleshoot issues on the fly, and assist customers who might not be tech-savvy.

• Integration with Existing Systems: Choose payment solutions that play nice with your current point-of-sale (POS) systems. Operational efficiency should be a top priority!

With these considerations in mind, restaurants can lay down a solid digital payment framework to boost both customer satisfaction and business growth.

Unlocking Efficiency & Reducing Costs: The SGQR Advantage

Adopting SGQR offers Singaporean restaurants a powerful toolkit for streamlining operations, enhancing customer satisfaction, and potentially minimizing transaction costs. If you're ready to embrace the future of payments and explore how a robust POS system can seamlessly integrate with SGQR, get in touch with Eats365 today for a consultation.

Let's discuss how we can help you optimize your payment processes and unlock new opportunities for your restaurant's success.

FAQs

So, what is SGQR for my cafe?

SGQR is Singapore's national unified payment QR code. For an F&B business, it combines multiple e-payment options like PayNow, GrabPay, DBS PayLah!, and others into a single QR code. This declutters your counter and allows customers to pay with their preferred app seamlessly.

How will SGQR benefit my restaurant business?

Adopting SGQR streamlines your operations significantly. You'll benefit from: 1. Less Counter Clutter: One QR code instead of many. 2. Faster Transactions: Quicker payment processing reduces queues during peak hours. 3. Wider Customer Acceptance: Cater to more customers by accepting a wide range of popular payment apps. 4. Simplified Reconciliation: Consolidates your transaction records, making end-of-day accounting much easier.

How complex is setting up SGQR?

The process is straightforward. You simply need to apply for one through an approved SGQR acquirer, which is typically your business bank (like DBS, OCBC, UOB) or a major payment provider. They will handle the backend integration of your chosen payment schemes and provide you with a single SGQR sticker for your outlet.

Can I use one SGQR for multiple outlets?

No, each distinct outlet or branch requires its own unique SGQR label. This is because each SGQR is tied to a specific merchant ID and location to ensure payments are correctly routed and recorded for that particular outlet's sales.

What is SGQR's advantage over other QR payments?

The main advantage is interoperability and future-proofing. SGQR is a national standard supported by the Monetary Authority of Singapore (MAS). It provides a single, scalable solution, allowing you to easily accept new payment methods as they join the SGQR network without needing to update your hardware or signage.