Tough choices in the quest to go cashless

SEAFOOD seller Te Yong Koon has set up a Nets payment terminal at his stall at West Coast Market Square. It emits 3 loud chimes when payment is made, and the screen lights up to show the amount paid in large font - so he can see it from afar.

Te said 30 to 40 per cent of his customers currently use some form of e-payment, and he finds it convenient because the payments are transferred to his account digitally. But when the current waiver of transaction fees ends on Dec 31, 2023, Te intends to return to collecting cash instead.

If he were to continue accepting e-payments, he would incur a S$50 monthly rental fee on the terminal and a 0.5 per cent merchant discount rate (MDR) on the value of each transaction. "My profits are not very high. Unlike larger companies, it's harder for small businesses like ours to justify the cost," he said.