Cash or Nets ?

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Cash or Nets ?

Postby verykiasu2010 » Mon Aug 27, 2012 11:14 pm

In my opinion, the root cause is NOT consumers are unwilling to switch to cashless payments. How many merchants in the market / hawker stalls are really ready to accept payments by NETS ?

This Jeffrey Goh misses the point completely. Singaporeans are ready to take out cash because there is NO nets terminal at any market / hawker centre. I'd rather avoid the inconvenience of taking cash from atm to pay the fishmongers

http://www.straitstimes.com/breaking-ne ... s-20120827

By Magdalen Ng
Click here to find out more!

Nets chief executive Jeffrey Goh hopes that within five years, Singaporeans will be able to go an entire day without using any cash.

But he acknowledges that the cashless society is proving harder to bring about than once thought.

Mr Goh recalled that in 1985, Singapore's central bank and the local banks formed Nets (Network for Electronic Transfers Singapore) to help move people away from using cash. More than 20 years later, Singapore remains a highly cash-based society, especially when it comes to payments of less than $10.

"Especially at hawker centres or when taking taxis, Singaporeans tend to take out cash," Mr Goh told The Straits Times in a recent interview.

He cited an experience he had in New Zealand, where a newspaper vendor accepted payments of less than $2 with cards. "Singapore will get there soon. From my understanding, the younger generation has become more accustomed to making payments without cash, as with adapting to any new technology," he said.

Even though the young are more adaptable when it comes to cashless payments, Mr Goh believes that the older generation can also be converted to doing so with the right equipment and technology. "Even those in their 60s are going to self-service kiosks to pay their bills.

"Once you design something they are familiar with, something similar to an ATM machine, they will be more than happy to use it," said Mr Goh.

He noted that it took about 15 years before consumer attitudes changed regarding standing in long lines to make bill payments at post offices. Yet even if consumer mindsets can be changed, it will still require a "conscious effort and decision" by merchants and vendors to adopt the cashless approach.



songyuan@sph.com.sg
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Re: Cash or Nets ?

Postby limlim » Tue Aug 28, 2012 12:11 am

How to support cashless if vendor impose surcharge for cashless payment?

Like taxi especially.. NETs or credit card got surcharge..

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Re: Cash or Nets ?

Postby Joule » Tue Aug 28, 2012 9:35 am

Nets chief executive Jeffrey Goh hopes that within five years, Singaporeans will be able to go an entire day without using any cash.


of course he hopes that la...

everytime a nets card is used, his company gets $$.

ah duh?

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Re: Cash or Nets ?

Postby Nebbermind » Tue Aug 28, 2012 9:47 am

Joule wrote:
Nets chief executive Jeffrey Goh hopes that within five years, Singaporeans will be able to go an entire day without using any cash.


of course he hopes that la...

everytime a nets card is used, his company gets $$.

ah duh?


think the vendor also needs to maintain a leased line from telco for online transactions.

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Re: Cash or Nets ?

Postby pinky » Tue Aug 28, 2012 1:49 pm

some retailers specify you must spend say $10 and above before you can use NETS so it's not consumers fault OK :evil:

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Re: Cash or Nets ?

Postby thebusybee » Thu Aug 30, 2012 1:17 am

I'm in the retail operation, had stopped using Nets and only use CreditCard terminal for cashless transactions since '05/'06. Because merchants have to pay $60 for rental of machine (last I know) per month on top of the few percent commission charge per transaction. For consumers without CC will use the DebitCard instead, so in my point, it makes Nets redundant and rather use the CC machine which is free rental and can accept most cards (Visa Master Amex) although it's 2.5 to 4% less per transaction. Plus most of my customers prefer to pay via CC/DC to gain points/rebates.

So for smaller retailers/vendors with small transactions like a few dollars with low margin, it's not really beneficial for them to accept cashless mode of payment, unless Nets and Banks/CC companies waive/lower the commissions.

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Re: Cash or Nets ?

Postby verykiasu2010 » Thu Aug 30, 2012 1:28 am

thebusybee wrote:I'm in the retail operation, had stopped using Nets and only use CreditCard terminal for cashless transactions since '05/'06. Because merchants have to pay $60 for rental of machine (last I know) per month on top of the few percent commission charge per transaction. For consumers without CC will use the DebitCard instead, so in my point, it makes Nets redundant and rather use the CC machine which is free rental and can accept most cards (Visa Master Amex) although it's 2.5 to 4% less per transaction. Plus most of my customers prefer to pay via CC/DC to gain points/rebates.

So for smaller retailers/vendors with small transactions like a few dollars with low margin, it's not really beneficial for them to accept cashless mode of payment, unless Nets and Banks/CC companies waive/lower the commissions.


Thank you for your posting. It further confirms the problem is not with the consumers wanting to use hard cash instead of going cashless by Nets.
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