AXS app launches China remittance through UnionPay, Latest Singapore News - The New Paper

AXS app launches China remittance through UnionPay

A new remittance service on the AXS app will allow money transfers to China for a flat fee of $1 through the UnionPay card network.

All transfers can be made securely and quickly within 60 seconds, said Mr Ryan Gwee, founder and chairman of global payment facilitator Aleta Planet, whose technology links users to the UnionPay network on the AXS app. Aleta Planet is licensed as a major payment institution in Singapore by the Monetary Authority of Singapore (MAS).

The first 5,000 customers will be able to make a first transaction of any amount for a transfer fee of $1 until March 31, 2024. Subsequently, users will have to transfer a minimum amount of $300. The transfer fee will remain at $1.

AXS and Aleta Planet on Feb 1 said they partnered up to offer this service after MAS announced on Dec 18 the suspension of the use of non-bank and non-card channels for cross-border money transfer services to China from Jan 1 to March 31, 2024.

This suspension came after the police said they had received more than 670 reports of remittances through non-bank and non-card channels, totalling around $13 million, being frozen as at Dec 15.

The remittance companies had processed the transfers through overseas licensed agents instead of using a direct bank transfer from Singapore to China.

During this period, remittance can be done only through a bank, a card network operator or a licensed financial institution that has engaged a bank or a card network operator.

AXS Services chief executive Chin Mun Chung said this partnership provides a faster, more secure and cost-effective remittance service for users who need to transfer money to China.

He said AXS will also explore expanding the remittance service “to more corridors to better serve our users”.