Evaluation of paper-based payment methods in Singapore

Abstract

Electronic payment methods such as Electronic Funds Transfer System (EFT) and Electronic Funds Transfer at Point of Sales (EFTPOS) have been increasingly used in Singapore. Yet, paper-based payment methods still predominate. A study of the paper-based payment methods was carried out to evaluate their strengths and weaknesses and to di s cuss the impact of the widening acceptance and usage of EFT on these traditional payment methods. In addition, the future developments of each paper-based payment method were examined. The paper-based payment methods under the study include banknotes and coins, bills of exchange, cheques and bankers' draft. Credit cards, another increasingly popular payment method, which have become an important part of the international payment systems, would also be highlighted. The sources of information are library materials, newspapers articles, journals and statutes. In addition, there are primary data obtained through survey and interviews with 35 organisations and 90 private individuals.From the study, we concluded that payments in Singapore by private individuals are still largely in the form of cash. In most situations, cash provides a quick and convenient method of settlement. Cheques is another popular payment method which is mainly used by business organisations. Credit cards have also been increasingly used in the last decade . Although there will probably be a large increase in . the number of electronic transfers over the next decade, Singapore is still considered a distance away from a cashless society.