Consumers can enjoy greater convenience of making payments using their CEPAS stored value cards beyond transport, with the number of contactless Point-of-Sales (POS) terminals more than quadrupling from 5,000 to almost 24,000 across various cash-based segments such as food courts, provision shops and convenience stores across Singapore. When fully deployed by 2011, the terminals are expected to generate over 94 million e-payment transactions per year, converting a significant number of cash-based payments to e-payments.

 

This is made possible through the recent Call-for-Collaboration (CFC) by the Infocomm Development Authority of Singapore (IDA) to catalyse the deployment of CEPAS-compliant POS terminals beyond the transport sector, bringing the convenience of e-payment to consumers and businesses for low value purchases. The award of the CFC to five companies, namely EZ-Link Pte Ltd, Nera Telecommunications Ltd, Network for Electronic Transfers (Singapore) Pte Ltd (“NETS”), PaymentLink Pte Ltd and Way Systems Solutions Pte Ltd, was announced by Acting Minister (MICA) RADM(NS) Lui Tuck Yew at IDA’s Infocomm Industry Forum 20091 on 30 Nov 09. 

RADM(NS) Ronnie Tay, Chief Executive Officer of IDA said, “As part of our Next Generation e-Payments Programme that aims to provide convenience to both consumers and merchants, IDA and the five companies will be funding $16 million through this CFC to proliferate the deployment of contactless CEPAS POS terminals in various segments across Singapore by 2011. This will spur adoption, effect a change in consumer habits and lay the infrastructure to support future innovative services such as Near Field Communication (NFC)-enabled mobile payment.”

The wide acceptance of CEPAS payment at business outlets will provide consumers with a highly compelling alternative payment choice to cash for low value purchases. With more than 2,250 convenient top-up points available in MRT stations, Bus Interchanges, Community Centres, heartland and shopping malls island-wide, through channels such as Passenger Service Counters, Ticketing Machines, AXS D-pay Stations, DBS/POSB ATMs, UOB ATMs and iNETS Kiosks, consumers can enjoy the convenience of e-payments without worrying about insufficient value on their cards. Many of these top-up facilities are free-of-charge.

Through IDA’s collaboration with the industry, merchants accepting CEPAS payments would benefit from a reduction of up to 50% in transaction fees2, terminal rental waiver for at least one year and immediate access to a customer base bearing more than 5.9m million3 CEPAS cards. In addition, merchants can also reduce administrative overheads and incidences of petty thefts with lower cash handling through increased e-payment usage.

 

Most of the POS terminals to be deployed under this CFC will accept 90% of all CEPAS cards currently in circulation. Not unlike the practice with credit and debit payment products, as the awarded acquirers forge business agreement with more card issuers over time, their POS terminals will be able to accept more or even all CEPAS cards, thereby further enhancing consumer convenience. IDA will continue to facilitate commercial negotiation between the acquirers and respective card issuers.

 

This collaboration with the industry will install a network of future-proof contactless POS terminals, paving the way for Singapore to capture opportunities associated with NFC-enabled mobile payments in future. This CFC constitutes part of the Next Generation e-Payment Programme that will bring Singapore one step closer to realising the iN2015 vision of transforming life and work through infocomm.

 

ISSUED BY CORPORATE AND MARKETING COMMUNICATION DIVISION INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE

Singapore Standard SS 518 - Contactless e-Purse Application, or in short, SS 518 CEPAS, was gazetted and published by SPRING Singapore. CEPAS was a result of a collaboration spearheaded by IDA, together with the Land Transport Authority (“LTA”), Cards & Personal Identification Technical Committee (“CPITC”) under the Singapore IT Standards Committee (“ITSC”) and industry players such as the Network for Electronic Transfers Singapore Pte Ltd (“NETS”) and EZ-Link Pte Ltd.

Near Field Communication (NFC) is a short range high frequency communication technology that enables data exchange between devices to facilitate electronic transactions at very short range, typically 4cm.

1 The Infocomm Industry Forum 2009 provides a unique opportunity for industry leaders, CXOs and entrepreneurs to glean the insights of thought leaders from around the world and to position themselves and their organisations for the business and technology innovation challenges that lie ahead.

2 For every e-payment transaction, merchants pay acquirers a percentage fee based on the value of the transaction. Under the CFC, transaction fees will be capped at 0.85%, which when compared to prevailing market rates of 1% - 1.8%, represents a 15% to 50% reduction in fees for merchants.

3 Source: compiled based on data from EZ-Link Pte Ltd, NETS and Land Transport Authority, as of Nov 09

 

 

Annex 1: Quotes from Awardees

Annex 2: CFC Awardee Companies Factsheets

Annex 3: Contactless POS Terminals Call-for-Collaboration Factsheet

Annex 4: Next Generation e-Payment Programme Factsheet

The Infocomm Development Authority of Singapore (IDA) is committed to growing Singapore into a dynamic global infocomm hub. IDA uses an integrated approach to developing info-communications in Singapore. This involves nurturing a competitive telecoms market as well as a conducive business environment with programmes and schemes for both local and international companies. For more news and information, visit www.ida.gov.sg.

Manager, Corporate and Marketing Communications

Infocomm Development Authority of Singapore

Tel: +65 6211 0640    

Fax: +65 6211 2227

E-mail: sukri_kadola@ida.gov.sg