HomePay CEO David Ng
In October 2023, the Singapore Police Force reported a series of renovation scams in which victims suffered collective losses exceeding SGD198,000 (US$147,000). The individual behind the crime vanished after receiving payments.
It was not a one-off incident; in fact, there have been 3,385 reported complaints in the city-state since 2021. In H1 2023 alone, the Consumers Association of Singapore received 631 complaints about delays and substandard workmanship within the renovation contractor industry. These incidents occur when interior designers face their own challenges, including clients withholding payments.
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“There was an immediate need for a secure and accountable payment system for the renovation industry,” David Ng, an entrepreneur with 30 years of experience in f&b, logistics, tech, gaming, e-commerce, AI, and blockchain, told e27. “The absence of such a system makes it challenging for homeowners to hold interior design firms accountable for their work and has led to instances of homeowners withholding payments. We realised that an escrow payment system could fix this problem.”
That was how HomePay was born.
Headquartered in Singapore, HomePay aims to address pertinent issues in the home renovation industry, specifically the lack of an escrow payment system and defined milestones. The escrow payment system provides a safeguard that releases funds only upon the homeowner approves completed milestones.
“By implementing an escrow model, the HomePay app ensures that funds are held securely in escrow in a DBS custodian account and renovation milestones are established, creating a transparent framework for both homeowners and IDs,” explained Ng.
How it works
Homeowners can pay their chosen interior design firm according to their pre-agreed progressive payment tranches using the Monetary Authority of Singapore (MAS)-approved HomePay wallet. Half of each tranche’s funds are held in escrow in a DBS custodian account and are only released upon the homeowner’s approval of works completed for that milestone and tranche. This is aimed at providing an additional layer of security and transparency.
Furthermore, homeowners can provide feedback and approve or deny completed work before payment release, enhancing their control over the renovation process.
The app comes with a HomeProtect feature, which ensures homeowners that their renovations will be completed according to plan, even in the worst-case scenario of a sudden closure of the interior design firm. “HomePay will find an alternative firm or vendor to complete the job at no additional cost to the homeowner,” shared Ng, who is also a venture partner at Mocha Ventures and TNB Aura.
HomePay also benefits interior design firms as they can assure their customers that by signing their renovation contract, they have extra protection from an external party throughout their whole renovation and are certain to carry out their job scopes properly.
In addition, the HomePay app empowers interior designers with efficient workflow management and streamlined project management capabilities. Interior designers and homeowners can conveniently set terms of the project timeline and progressive payment schedules and sign contracts remotely through the app.
The fintech startup is considering enabling cross-function capabilities with interior design firms’ existing accounting software.
According to Ng, HomePay is open to working with any interior design firm — big or small — but especially those that want or prefer giving their clients additional confidence throughout the renovation. “We look into the history and background of the interior design firms’ directors. We ensure that all firms pass a strict Know Your Business process and are MAS-compliant,” he added.
The monetisation model
The company charges a per-project admin fee of SGD200 for the platform to secure large renovation amounts and be assured under HomeProtect. For interior design firms, the transaction fee is 1.5 per cent to 1.9 per cent of the total fees.
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The startup currently operates in Singapore. Ng said that as payment gateway solutions, such as VISA and Mastercard, are universally needed, HomePay’s model can be applied and scaled to other markets in the renovation context.
However, the initial plans are to expand regionally in Southeast Asia (particularly Malaysia and Thailand) before going global.
HomePay emerges as a potential solution to the rampant issues plaguing the Singaporean renovation industry. HomePay aims to modernise and secure the renovation process by empowering both homeowners and interior designers, offering peace of mind and a smoother experience for all.
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