Tough choices in the quest to go cashless
Smaller merchants who embraced digital payments may revert to cash the moment they are charged any fees. Meanwhile, competition in the digital payments space is forcing companies to lower their fees and think up new revenue models
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Features
Thrifting is trending, but there’s more than meets the eye
Home away from home: More Singaporeans eye Malaysia as place to retire
Singapore’s population crisis: Can ‘working for longer’ fix what family perks can’t?
Increased longevity will bring profound social change
You can’t shake it off – deepfakes are here
Not just fun and games: How mobile games have become big business