Will we still need cash in the future?

In last year’s National Day Rally address, Singapore Prime Minister Lee Hsien Loong urged the country to make headway in the e-payment space in order to truly become a Smart Nation.

This has led to an increase in the number of businesses going cashless.

According to a recent poll by OCBC bank, two out of three small and medium enterprises (SMEs) are likely to go cashless by 2023.

In fact, even stalls in food centres have already started offering cashless payments by way of mobile wallets.

Many people are already familiar with electronic funds transfer at point of sale, such as NETS cards, as well as contactless credit cards.

The other popular e-payment option is the mobile wallet, which requires you to download an app and link your credit or debit card to the electronic wallet function.

Payment is usually made by scanning a QR code unique to the merchant and then keying in the payment amount.

Google Pay, Apple Pay and Samsung Pay are some of the big names in e-payment.

However, many local and regional businesses are also coming up with their own e-wallet options.

And it’s not just about being able to walk around with less cash in your pocket.

Singapore is also cutting down on the use of cheques, with the government hoping to go completely cheque-free by 2025.

Over in neighbouring Malaysia, the goal is to become a cashless society by 2050.

With a cashless society seemingly an inevitable outcome, it’s time to familiarise yourself with some of the e-payment options available.

1. PayNow

This electronic funds transfer service allows you to send money instantly to anyone in Singapore as long as you have the payee’s mobile number or identity card number.

This means you no longer need to know their bank account details, as long as they have an account with any of the nine participating banks.

These include DBS Bank/POSB, HSBC, Maybank, OCBC Bank and UOB. Register with the bank of your choice in order to start using this free service. The service has now expanded to include making payments at participating businesses and retail shops.

2. GrabPay

Started by the Singapore-based ride-hailing company, this is an e-wallet option that was first used to pay for Grab rides.

It has since expanded to include over 200 other merchants, including F&B outlets and services, such as hair and beauty salons.

You can choose to top up your e-wallet with GrabPay Credits or link it to a credit or debit card.

You can also send GrabPay Credits to friends and family.

GrabPay is also available in Malaysia where you can use it at more than 500 F&B merchants in eight cities, namely, Klang Valley, Penang, Johor Bahru, Ipoh, Melaka, Kota Kinabalu, Kuching and Kuantan.

In addition to topping up their GrabPay Credits using credit or debit cards, users can also do so via Maybank internet banking, or with cash at 7-Eleven outlets.

3. FavePay

This e-wallet payment option is available in over ten cities and three countries across Southeast Asia, including Singapore and Malaysia.

Simply add a payment method – the app accepts Amex, MasterCard and Visa credit and debit cards.

When paying, scan the QR code, enter your bill amount and click “Pay Now”. You can also earn up to 20 per cent cashback.

FavePay is accepted in over 600 places including Starbucks and Circle K in Malaysia, and Subway and Food Republic in Singapore, just to name a few.