- The Straits Times
Two in three commuters said that they plan to use their credit or debit card to pay for public transportation fares in Singapore, according to a study by United Overseas Bank (UOB) released on Wednesday (April 3).
The study, conducted in January last year with more than 1,000 individuals in Singapore, suggested that when these commuters pay for bus or train rides with their credit or debit card, they are likely to also make contactless card payments in other areas.
The study found that UOB cardmembers who paid public transport fares with their credit or debit card increased their overall contactless spending – which includes other products and services – by 51 per cent.
Furthermore, consumers who choose e-payments for transit also plan to use the same payment method when it comes to grocery shopping (82 per cent), or paying friends (83 per cent), the study stated.
UOB’s head of cards and payments in Singapore Choo Wan Sim said: “As commuters enjoy the convenience and the simplicity of using a single payment card every time and anytime they need to pay for their fares, they will naturally forego cash payment for electronic means such as contactless in other areas of their lives.”
UOB, which is the only bank appointed by the Land Transport Authority (LTA) to process credit and debit card payments at fare readers, said that it has seen an increasing use of contactless credit and debit card payments for transit since SimplyGo was piloted in 2017.
SimplyGo is an LTA initiative to enable commuters to use their credit or debit cards with contactless function for fare payments.
In a statement on Monday (April 1), LTA said that as part of its SimplyGo initiative, commuters can simply use their Mastercard contactless bank cards or mobile phones when paying for public transport fares from April 4 onwards.
LTA added that Visa may also be included in the initiative later this year.
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