Buying a property in Singapore has traditionally meant homebuyers writing physical cheques, while developers manually verify and match each one against the sale – a slow, paper-heavy process on both sides. City Developments Limited (CDL) has moved away from it, and with much success.
The developer’s e-payment journey began as early as 2018, when it introduced FAST (Fast and Secure Transfers) for homebuyers at The Tapestry development in Tampines. That early move set the stage for CDL to become one of the early adopters of the Electronic Deferred Payment (EDP and EDP+) system when it launched in 2025 – a transition that, as it turns out, was also well-timed.
With e-payments growing more convenient and widespread across the economy in recent years, cheque usage has also seen a sharp decline. As such, all banks in Singapore will stop processing Singapore dollar-denominated corporate cheques from Jan 1, 2027.
Ahead of that deadline, businesses and consumers here are being encouraged to switch to e-payment alternatives such as EDP and EDP+. Both let payers make deferred payments instead of using future-dated cheques, for instance, to fulfil contractual requirements such as buying a home for individuals or making supplier payments for businesses.
The two solutions were introduced to give individuals and businesses the option of making deferred payments with notifications to recipients, complementing existing options such as PayNow, GIRO (General Interbank Recurring Order), FAST and MEPS+ (MAS Electronic Payment System).
For CDL, the shift to the latest e-payments has already created a win-win for the company, its clients and partner banks. The developer now uses EDP+ for sales bookings and progressive payments on its property transactions.
“EDP+ provides a sustainable, more efficient alternative to cheques, which have traditionally been used for property sales collections,” says CDL’s group general manager Chia Ngiang Hong.
“It improves payment collection, reduces the manual administrative effort associated with cheque handling, while enhancing payment tracking and reconciliation.”
EDP vs EDP+: What is the difference?
EDP and EDP+ are two e-payment solutions introduced on July 28, 2025, that let businesses and individuals make deferred payments in place of cheques. They complement existing options such as PayNow, FAST, GIRO and MEPS+.
The key difference between the two lies in when funds are deducted from the payer’s account.
EDP: Funds are deducted from the payer’s account only when the payee requests payment, that is, upon presentment of the EDP.
EDP+: Funds are deducted immediately from the payer’s account upon issuance of the EDP+, ensuring the amount cannot be used for other transactions. This reduces the risk of non-payment due to insufficient funds in the payer’s account, providing greater assurance to payees as compared to EDP.
The challenges and benefits of switching to EDP+
CDL’s move to EDP+ builds on its digital payment journey that began in 2018. Chia called it a “natural progression”.
By working closely with its banking partners, CDL was able to align operational processes for successful implementation. One key challenge was adapting to the different ways banks process incoming EDP+ payments.
As collections must comply with CDL’s existing banking controls and mandate requirements, the company collaborated with its banking partners to ensure the smooth collection of funds while maintaining appropriate governance and oversight.
Homebuyers can opt for e-payments via EDP+ for Lucerne Grand, CDL’s new launch at Lakeside Drive.
PHOTO: CDL
That groundwork paid off in three ways.
The first is lower risk with less hassle. Because EDP+ funds are deducted and set aside upon issuance, CDL gets greater assurance of payment, reducing the risk of insufficient funds and unsuccessful collections – while also saving the time and effort of having to chase clients for replacement payments.
The second is easier tracking and matching. With payment details captured electronically, CDL can more easily identify who made a payment and match it to the correct transaction, improving the accuracy of its bank reconciliation and giving the finance team better visibility and control over incoming payments. EDP+’s presentment feature, accessed through the bank’s digital banking platform, enables CDL’s finance team to receive incoming EDP+ payments while providing clear visibility of the payer, payment amount and payment purpose.
The third benefit reaches beyond the balance sheet: moving away from paper cheques complements CDL’s sustainability and digitalisation goals. “It reduces reliance on physical cheques and paper-based processes and is also aligned with our digitalisation and sustainability efforts,” Chia says.
What EDP+ means for homebuyers making property payments
The shift to the new method is not just about making things easier for CDL. It also gives homebuyers a simpler way to make payments without relying on physical cheques.
“EDP+ offers homebuyers greater choice and flexibility in making property payments, while maintaining the controls necessary for property transactions,” says Chia.
For homebuyers, the most obvious gain is speed. Chia explains EDP+ “helps streamline payment processing for homebuyers”. Instead of writing and handing over a cheque, buyers can simply use a digital option, smoothening the payment process.
That speed comes with greater certainty, too. Buyers can receive status updates through their banking platforms, helping them see when a payment has been issued, presented or accepted. This reduces the uncertainty that can otherwise accompany an important transaction.
The paper trail improves as well: With clearer electronic records, buyers can more easily track payments, check references and keep the documents they need for their home purchase.
Lessons for property developers switching to EDP+
CDL believes wider use of EDP+ can help the property sector move smoothly into a cheque-free future.
For developers, one key benefit is lower collection risk. With EDP+, funds are deducted immediately from the purchaser’s account upon issuance, reducing the risk of non-payment due to insufficient funds. Chia says this also cuts down on the administrative downtime caused by issues such as bounced cheques and defaulted payments.
The platform can also support better cashflow planning for developers. “Real-time notifications from the EDP+ platform, together with clear payment references, improve cash flow visibility and facilitate accurate forecasting of project cash inflows,” says Chia.
CDL’s group general manager Chia Ngiang Hong.
PHOTO: CDL
Taken together, the new deferred e-payment platform has created a win-win outcome for CDL, homebuyers and the industry.
For homebuyers, the change provides another convenient electronic option alongside existing e-payment methods. For the developers and the industry, it is a practical step towards faster, more reliable and less paper-based transactions.
Visit The Association of Banks in Singapore’s website or speak to your bank representative to find out more about e-payment solutions.
