ย | The following is a sponsored post by AXS. The opinions are those of The MileLion. |
AXS has launched a new feature that allows customers to make recurring bill payments with Mastercard credit and debit cards.
This is conceptually similar to setting up a GIRO billing arrangement, only backed by a credit card instead of bank account. Not only do you get the certainty of on-time payment, it also lets you stretch your cashflow by tapping your credit card’s interest-free period of up to 55 days.
Unlike paper-based GIRO arrangements, recurring bill payments via AXS and Mastercard can be set up instantly, without any processing time. They also offer a greater degree of control compared to a traditional GIRO arrangement, with the option to pause or skip a given month’s payment if you wish.
AXS now offers recurring bill payments with Mastercard
AXS customers can now set up recurring bill payments for the following categories with a Mastercard credit or debit card.
Category | Remarks |
General |
|
Credit Cards |
|
Loans |
|
Insurance |
|
Storage | ย |
Memberships |
|
Electricity | ย |
Home Services | ย |
Student Services | ย |
To set up a recurring payment, first pay a bill using a Mastercard credit or debit card (Payment Mode Selection> Credit/Debit Cards > Other Banks > Enter your Mastercard number).
After completing a payment for an eligible bill, you’ll be prompted to set up a recurring billing arrangement. Once done, future bill payments will be automatically charged to the same Mastercard.
As an added incentive for setting up recurring payments, customers who complete the setup process with aย Mastercard will receive a S$2 AXS e-Voucher. This promotion isย valid from now till 31 March 2025 or until 10,000 vouchers are fully redeemed, whichever happens first.
The T&Cs of this campaign can be found here.
What are the advantages?
Faster payment setup
While e-GIRO is gradually being rolled out in Singapore, not all billing organisations support it yet.ย In that case, you’ll need to fill out a physical form and mail it in, with processing times taking up to four weeks.ย
Any recurring bill arrangement set up with AXS and Mastercard comes into effect immediately.
Certainty of on-time payment
Similar to a GIRO arrangement, setting up a recurring bill arrangement with AXS and Mastercard ensures on-time payment every month. This lets you avoid late fees and finance charges, or the accidental lapse of your insurance policy.
More control over payments
There may be situations where you’d like to initiate a temporary pause on a recurring payment arrangement, perhaps because of a dispute, or if you’ve made a manual payment through another channel and want to avoid a double deduction.ย
Under a traditional GIRO billing arrangement, the only way of stopping a payment is to terminate the arrangement completely. This might be too drastic a measure to take, especially if your intention is only to skip a single payment.ย
The AXS m-Station app (Android | iOS) offers more control, with users able to manage their recurring billing arrangements from a centralised dashboard. To see this, visit the Account section, then choose Recurring Payment. This will show a complete list of recurring bills under your Mastercard.ย
The m-Station app will also notify you three days in advance of every recurring deduction, and if you wish, you can stop the recurring payment anytime up till 3 p.m on the day before the recurring payment date. Users have the option to pause payments for one cycle, or disable them indefinitely.
๐ฒ Other AXS m-Station app features |
The AXS app also allows you to save frequently used billers under My Favourites, which avoids the need to enter the details each time. Other useful features includeย My Vault, a secure feature for storing payment details or important receipts/documents for easy access (e.g. insurance policies). |
Stretch cashflow by tapping your credit card’s interest-free period
To be clear: you won’t earn any credit card rewards for paying bills via AXS, because AXS transactions fall under the rewards exclusion list for most card issuers in Singapore.
However, most of the bills that AXS processes either can’t be paid with credit cards directly, or aren’t eligible to earn credit card rewards. If you wanted to get around these restrictions, you’d typically need to pay an admin fee through a platform like Pay+Earn, CardUp or Citi PayAll.
So what’s the appeal here? Cashflow.ย
Paying your AXS bills via Mastercard allows you to take advantage of the interest-free period on your credit card, delaying the outflow of funds from your account.ย
Suppose you have an insurance premium to pay, and your options are:
- Option 1: Pay the bill on AXS via eNETS or PayNow QR
- Option 2: Pay the bill on AXS via Mastercard credit card
If you pick option 1, funds are deducted immediatelyย from your account and used to pay the insurance premium.
If you pick option 2, your credit card is charged and the insurance premium is paid immediately. But your credit card bill isn’t due straight away.
For example, suppose your statement date falls on the 10th of each month, and you have a bill that’s due on 12 January 2025. You can make the payment via AXS with your Mastercard credit card on 11 January 2025, which will become part of the statement balance that arrives on 10 February 2025.
Assuming your bank gives you 25 days to pay, cash only leaves your account on 7 March 2025. You have effectively enjoyed an interest-free period of 55 days!
So the general idea here is to make your payments at the very start of your credit card statement period, giving you additional time to pay at no additional costย (remember, you can call up the bank and ask them to switch your statement cycle to better suit the timing of your regular bills).
Of course, the timelines may not always line up so neatly, because you can’t dictate when certain bills need to be paid. But the general idea of stretching your cashflow by using the credit card’s interest-free period still holds.
๐ก Stack with HSBC Everyday Global Account (EGA) |
The HSBC EGA offers customers 1% cashback for GIRO bill payments, capped at S$300 per month for Personal Banking, and S$500 per month for Premier/Jade customers.ย Instead of making GIRO bill payments directly with a HSBC EGA, what you could do is put these charges on your non-HSBC Mastercard via AXS, then set up a GIRO arrangement with the HSBC EGA for that card. Each month, your bills will be charged to the Mastercard. When the card balance gets paid,ย you’ll earn 1% cashback. In other words, you get to stack the interest-free benefit with EGA cashback. |
Conclusion
AXS customers can now set up recurring bill payments with their Mastercard credit or debit card. While you won’t earn rewards for AXS transactions, doing so gives you greater control over your payments, and the ability to leverage your credit card’s interest-free period, even for bills where credit cards are normally not accepted.
More payment options for recurring payments will be added progressively, so stay tuned.
Do we earn miles for recurring payments?
AXS transactions do not earn miles. the angle here is not rewards- it’s cashflow and more control compared to GIRO
A step in the wrong direction.
Thankfully you can pay mist providers directly with a card (phone, internet, power, etc.) Best done direct than through an intermediary, especially if the only way to manage this is through an must-download mobile app which, by default, steals your data and tracks you.
she said, as she typed on her Android phone while swiping between TikTok and Instagram and watching videos on YouTube
If you pay credit card bills with UOB One Debit Mastercard via AXS, does that qualify as eligible spends for your UOB One bonus interest?
Go read the UOB One T&Cs