Chairman I declare that I’m an employee of a financial institution in Singapore.
Chairman, cash may no longer be king. From 2018 to 2024, the total value of FAST payments has increased by 511% to $661.7 billion while the total value of credit and debit card payments have increased by 52% to $148.9 billion. However, even as the value of ATM withdrawals have declined as expected, the decline was modest at a mere 13.6% to $55.1 billion.
Despite the proliferation of PayNow, PayWave and various forms of stored value and card payment options available to consumers today, this suggests that cash continues to be an important medium of exchange to consumers. Unfortunately, there has been an increase in the number of merchants, ranging from cafes to sporting goods stores, have stopped accepting cash payments.
While digital payments may be convenient for digitally savvy consumers and businesses, it disadvantages those who experience barriers when going cashless.
Some communities, such as seniors and Persons with Disabilities, may find it challenging to adopt technologies such as digital payments as part of their daily lives. Furthermore, some children can only use cash as parents may deem their children too young to own a bank card or smartphone. Some adults I know also prefer using cash to safeguard themselves against online scams or to better regulate their expenses.
For businesses, offering cash as a payment option helps to strengthen business resiliency should a disruption to digital payment services occur.
Under the Currency Act, businesses have the flexibility to determine their accepted payment modes, which must be indicated to customers via a written notice.
Therefore, I hope that the Government would mandate all physical merchants to accept cash payments, in line with other economies such as China and Norway, or at least start with a pilot in existing residential neighbourhoods. In particular, despite the ubiquity of digital payment options such as WeChat and AliPay in China, arguably the most advanced country in cashless payments globally, the Chinese authorities have in fact strengthened regulations recently, such that entities that receive payments in person or provide face-to-face services must support cash payments.
Even as we focus on being a digital-first society, we must ensure that financial inclusivity is strengthened – rather than weakened.
