Realise cashless future pragmatically
Study shows e-payments gaining traction here, QR code may be key to widespread adoption
Across Asean, nations are going full steam ahead to realise their vision for a cashless society.
However, despite efforts to drive e-payment adoption, cash still remains king today.
According to The Future of Payments Study conducted by UnionPay International and Nielsen with 400 mobile payment users here, cash emerged as the most popular mode of payment, with 94 per cent of the respondents using it in the past three months. In Thailand, this figure stood at 87 per cent.
However, the study revealed that mobile payments is gaining traction in Singapore. Six in 10 Singaporeans have used at least one mobile payment method in the last three months. Additionally, more than six in 10 mobile payment users here said they would recommend mobile payments to their social circle and take the initiative to teach their family, friends and colleagues to use mobile payments if they were resistant to adopt them.
In Singapore, where cash is easily accessible and comes at little or no perceived cost, there is little incentive for consumers to make the shift to e-payments.
Still, with the proliferation of credit cards that deliver a range of benefits, along with a multitude of mobile payment options with attractive rewards, consumers have increasingly adopted e-payments.
This shows that with a clear understanding of the benefits of cashless payments, consumers can be enticed to make the shift to electronic modes of payment. However, are we doing enough to educate consumers about the benefits of e-payments and the opportunity cost of cash?
Recently, I spoke to a taxi driver who prefers collecting fares in cash and made several trips to the automated teller machine a day to deposit his earnings. I shared with him about mobile payments and how he can use the time saved from shuttling to and from ATMs, to generate additional income, or to meet with his family.
That seemed to strike a chord with him as he has never heard that point of view before. This could be what we need to do more to help more people get ready for a cashless future.
With a multitude of players vying for a share of the e-payment pie, this has brought many solutions into the market. While this means more choices for consumers, businesses struggle with installing payment systems.
Singapore has made steps to unify systems. The introduction of unified point-of-sale terminals will bring about convenience and ease of processing payments for merchants.
The launch of SGQR will bring about added clarity to merchants and consumers while enabling interoperability across payment systems.
The study uncovered that mobile Quick Response code, despite being a relatively new form of payment here, is the most widely adopted mobile payment method today.
Its adoption rate among consumers aged between 38 and 65 is higher than other mobile payment methods in the past three months, showing QR code might hold the key to advancing mobile payment adoption across older consumer segments.
A cashless future will not happen overnight. It is important that we take a pragmatic approach to advance the cashless agenda by laying the right foundation for our future.
This means choosing the right mobile payment solutions that can enable widespread adoption across consumer segments and working with key players to enable a more inclusive cashless society for everyone.
The writer is deputy general manager at UnionPay International South-east Asia.
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