Cashless payments will succeed only if customers find it easy to use

THE launch of NetsPay in Singapore last week will give a big push to Singapore's drive to become a cashless society. The Republic's leading payment network, backed by the three local banking groups, has the largest merchant and user base and a 32-year track record of serving one in three people for everyday purchases.

Its launch followed a flurry of media reporting on new digital payment modes, culminating in Prime Minister Lee Hsien Loong's National Day Rally speech on Aug 20 where he highlighted some of the obstacles in the way of Singapore going cashless. PM Lee noted the need to "simplify and integrate" the many different payment systems now in use, which is confusing consumers.

While the perception seems to be that the Republic is lagging behind China in digital payments, it has to be pointed out that cashless payments have been a popular mode of payment for consumers in Singapore for many years. They simply take other forms - namely cheques, debit cards and credit cards. Singapore, in fact, has one of the highest usage of credit cards in Asia.