Monetary Auth of Singapore Introducing eCash into Singapore
I give this suggestion to MAS on how to introduce eCash into Singapore to replace physical cash (i.e bank notes and coins).

I know of past failures of introducing the NETS Cash Card. We need to adopt a new approach to ensure that eCash does not suffer the same fate.

The key changes required are:

* Easy for the merchant to receive payment by eCash. 
* Easy for the customer to get an eCash card.

The cost should also be low.

This how I see the process works.

1.  Any customer can buy an eCash card for $2. There is no need to register. The eCash wallet is anonymous.
2,  They can transfer money into the eCash card at an ATM machine or by internet banking.
3.  They can go to a top up point to give physical cash and credit the money into the eCash card. 
4.  The merchant can use a mobile phone (with NFC reader) to receive the eCash. The merchant can also buy a special device, costing about $200, to receive the payment. This device can be subsidized by the govt.

When customers and merchants get used to eCash, they will prefer to use it as it saves time in handling physical cash and giving change. After a year, eCash can be the dominant form of payment at food courts and small retail outlets.

China has gone through this transformation with AliPay and WeChat Pay (which requires a mobile phone). 

The eCash card is easier to use. It will work.

Tan Kin Lian

 

Add Comment

---