Can Sin­ga­pore­ans re­ally go cash­less?

Singapore Business Review - - CONTENTS -

For all of Sin­ga­pore’s tech savvy and strong push to­wards a cash­less so­ci­ety, a re­cent Paypal re­port re­vealed that nine out of 10 Sin­ga­pore­ans still pre­fer to pay us­ing cash. De­spite the coun­try’s high smart­phone pen­e­tra­tion rate and world-class con­nec­tiv­ity ca­pa­bil­i­ties, the re­port said the value of notes and coins in cir­cu­la­tion by the MAS has been in­creas­ing in the past 10 years with lat­est avail­able sta­tis­tics show­ing that it rose to $42.5b in 2016.

But this statis­tic may very well be short-lived as the gov­ern­ment con­tin­ues to make a sig­nif­i­cant push for dig­i­tal pay­ments adop­tion in Sin­ga­pore. In Au­gust, the MAS es­tab­lished a Pay­ments Coun­cil to be part of a se­ries of ef­forts to­wards re­al­is­ing the vi­sion of an e-pay­ment so­ci­ety in Sin­ga­pore.

The Pay­ments Coun­cil is also set­ting up a task­force to de­velop a com­mon QR code for Sin­ga­pore as the use of QR code-based pay­ments is con­sid­ered as a prac­ti­cal and con­ve­nient way to in­tro­duce e-pay­ments to cash-based mer­chants in the city-state. The room for growth of dig­i­tal pay­ment, de­spite Sin­ga­pore­ans’ cur­rent pref­er­ence for cash, has no ceil­ing — at least for the time be­ing.

“Sin­ga­pore­ans are in­ter­ested in the mo­bile pay­ment ex­pe­ri­ence,” said Yeo Hiang Meng, Pay­ments Coun­cil mem­ber and pres­i­dent of the Fed­er­a­tion of Mer­chants’ As­so­ci­a­tion in Sin­ga­pore. “We hope to see in­ten­si­fied mar­ket­ing ef­forts to en­cour­age busi­nesses and con­sumers to adopt mo­bile pay­ments at heart­land shops and hawker cen­tres.”

Cash­less is king

For the pri­vate sec­tor, the re­cent roll­out of Paynow has re­ported 500,000 reg­is­tra­tions and more than $10m in trans­ac­tions since its launch in early July. Mean­while, OCBC Bank launched a mo­bile key­board in late Au­gust to en­able their clients to make cash­less pay­ments to any bank ac­count in the ter­ri­tory with­out hav­ing to exit what­ever mo­bile ap­pli­ca­tion they’re us­ing. This is on top of es­tab­lished e-pay­ment schemes like Grab­pay, Ap­ple Pay and An­droid Pay mak­ing head­ways in dig­i­tal pay­ment trans­for­ma­tion in Sin­ga­pore. Where the city-state is headed, looks like there wouldn’t be much pa­per notes and coins needed.

The value of notes and coins in cir­cu­la­tion by the MAS rose to $42.5b in 2016.

OCBC Bank launched a mo­bile key­board in late Au­gust to en­able their clients to make cash­less pay­ments to any bank ac­count

Source: Paypal APAC Aware­ness of new pay­ment meth­ods

Newspapers in English

Newspapers from Singapore

© PressReader. All rights reserved.