The launch of SimplyGo on 4 April, which allows commuters to use their credit or debit card to pay for their bus or train fares, is expected to boost overall debit and credit card use.

Consumers in Singapore who use their credit or debit cards to pay for rides on public transport are more likely to increase their overall contactless spend, which includes other products and services, by 51 percent, UOB said. 

The bank conducted a consumer survey on e-payments conducted among more than 1,000 individuals in 2018, which found that consumers who choose e-payments for transit also plan to do so for other small-ticket items which are traditionally paid for in cash, such as paying friends (83 percent) and grocery shopping (82 percent). 

«Credit and debit contactless card payments for public transport will be the catalyst for increased contactless usage overall. 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,» Choo Wan Sim, Head of Cards and Payments Singapore, UOB, said.

SimplyGo Rollout

SimplyGo removes the need to carry a separate travel card or make upfront top-ups before travelling. Users first have to register on the SimplyGo portal and add their credit/debit card to their account. Commuters who use SimplyGo will be charged the same fares as those who use travel cards like EZ-Link and NETS Flashpay.

Contactless credit and debit card payments for transit was piloted by the Land Transport Authority in 2017 in a program known as ABT (account-based ticketing). With the launch of SimplyGo, UOB expects one in two public transport rides to be paid through this mode within the next five years. 

Fow now, SimplyGo only works with Mastercard cards, but Visa compatibility is expected later in the year.