"Stripe charges around 3.4% per transaction while PayNow is free. For an SME sending invoices regularly that difference adds up fast."

That's not our analysis. That's a Singapore business owner's comment on Reddit, explaining why they couldn't recommend Stripe for local invoicing. It got three upvotes in a thread about invoice tools — which means other business owners read it and thought: yes, that's exactly right.

Let's do the actual maths.

The Real Cost of Stripe for Singapore B2B Invoicing

Stripe's standard rate in Singapore is 3.4% plus SGD 0.50 per successful transaction. For a business invoicing other businesses — the core use case for AP/AR software — this is expensive.

If you invoice SGD 30,000 per month:

• Stripe fees: SGD 30,000 × 3.4% + fees per transaction
• Monthly cost: approximately SGD 1,020 in percentage fees alone
• Annual cost: approximately SGD 12,240

If you invoice SGD 50,000 per month:

• Monthly fee cost: approximately SGD 1,700
• Annual cost: approximately SGD 20,400

If you invoice SGD 100,000 per month:

• Monthly fee cost: approximately SGD 3,400
• Annual cost: approximately SGD 40,800

PayNow costs zero. The same SGD 100,000 in monthly invoices processed via PayNow costs you nothing in transaction fees.

But Stripe Is More Convenient, Right?

This is the argument Stripe users make. And it has some truth to it — if your clients are paying by credit card, Stripe is smooth. The payment link works internationally. The reconciliation is automatic.

But in Singapore B2B invoicing, most clients don't pay by credit card. Corporate accounts pay by bank transfer. Individuals pay by PayNow. The "convenience" of Stripe often means you're paying 3.4% so that the rare client who wants to pay by card can do so — while your majority of clients pay by bank transfer anyway, which Stripe doesn't help with.

What PayNow Actually Looks Like for Business Invoicing

The misconception about PayNow for business is that it means sharing your personal phone number. That's not how it works for registered businesses.

Businesses register their UEN (Unique Entity Number) with PayNow. Clients pay to your UEN — not your phone number. The payment appears in your business bank account immediately, with the reference number the client provides.

When this is embedded in an invoice — as a QR code that the client scans — the payment experience is actually faster than Stripe. Client opens invoice, scans QR, confirms payment on their banking app. Done in 20 seconds. No card details to enter. No PayNow account to create. Every Singapore person with a banking app can do this instantly.

The Reconciliation Problem With Manual PayNow

The reason some businesses use Stripe despite the fees is reconciliation. When clients pay via PayNow manually, they sometimes forget the reference number, or they pay a slightly wrong amount, or three payments come in from the same client and you don't know which invoice each covers.

This is a real problem. But it's a problem with manual PayNow — not with PayNow itself.

When PayNow is integrated into your invoicing software, the QR code is generated with the invoice reference pre-embedded. The client scans it, their banking app auto-fills the reference, and the payment is automatically matched to the correct invoice. No reconciliation confusion.

When Stripe Actually Makes Sense

To be fair: Stripe makes sense in specific situations.

If you have international clients paying in foreign currencies, Stripe handles currency conversion cleanly. If your clients are individuals who prefer credit card payments — retail, e-commerce, consumer services — the 3.4% is competitive with other card processing options. If you need subscription billing with automatic retries, Stripe's infrastructure is genuinely good.

But for Singapore B2B invoicing — which is what most SMEs are doing — you're paying 3.4% for a solution to a problem PayNow already solves for free.

The Annual Number

Whatever your monthly invoice volume, calculate 3.4% of it. That's your annual Stripe cost divided by 12. Multiply by 12. That's what you're paying per year to avoid setting up PayNow QR codes on your invoices.

For most Singapore SMEs, that number is between SGD 10,000 and SGD 50,000 per year.

ArcPay embeds a PayNow QR code on every invoice automatically. Zero transaction fees. Payments are automatically matched to invoices when received. Your bank reconciliation updates itself.

The first month you use it, you'll calculate what you were paying Stripe and wonder why you waited.

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