43% of Singaporeans don't use e-wallets or apps for public transport, many in lower income households still prefer physical cards or tokens: study

SINGAPORE — The appeal of physical cards remains strong for certain commuters in Singapore, despite the perceived convenience offered by digital payment methods such as e-wallets, a recent study commissioned by Yahoo Singapore and conducted by Milieu Insight has found.

The study, titled "The Clicks and Shifts: Yahoo Singapore Digital Study", was conducted in February 2024 and aimed to shed light on the perceptions and behaviours towards mobile apps and digital services in Singapore.

The study found that out of 1,500 respondents aged 18 and above, 57 per cent of commuters use mobile apps or e-wallets for payments, and a sizeable 43 per cent do not.

For some, like Joanne Sia, a 24-year-old who commutes daily from her office in the Central Business District (CBD) to her home in Somerset via the MRT, her preference of a physical payment card often perplexes her peers in this era of digital advancements.

In her interview with Yahoo Singapore on Tuesday (26 March), Sia shared that she developed a steadfast habit: she always ensures there is space in her physical wallet for her EZ-Link card.

In explaining her preference, Sia touched on the uncertainty of e-wallet transactions. She said, "With e-wallets, it's like tapping once and not knowing how much is deducted. Sometimes, when you receive your credit card bill at the end of the month, you question whether certain charges are for bus fares."

Despite the digital alternatives, Sia finds comfort in the familiarity of her EZ-Link card, saying, "Every time I take public transport, I associate it with my card."

Similarly, 56-year-old Omar has relied on his EZ-Link card for decades during his daily commute to work in Jurong. For him, embracing e-wallets or mobile apps poses an unnecessary hassle, particularly for someone of his seniority.

Omar told Yahoo, "Call me old school, but I appreciate having a dedicated EZ-Link card to pay for my fares so that I can see the deduction clearly."

Sia and Omar's sentiments are shared by some commuters in Singapore. According to the forthcoming study, which will be released on 2 April, the majority (76 per cent) of those who do not use mobile apps or e-wallets for public transport still prefer their physical card.

Moreover, 21 per cent mentioned their card had an automatic top-up function, and only 10 per cent preferred to pay cash.

The study also found that those belonging to higher household income levels are more likely to use a mobile app and/or e-wallet for public transport.

More than half of those in households earning over $6,000 a month (59 per cent) used e-wallets or mobile apps for fare payment, rising to 70 per cent for those with an income over $12,000.

Conversely, only 40 per cent of respondents with a household income of $3,000 or less use e-wallets or mobile apps on public transport.

Individuals in this income group who did not use these methods also heavily favoured physical cards or tokens, at an overwhelming 82 per cent.

Why physical cards still reign among the seniors?

Associate Professor Raymond Ong, from the Department of Civil and Environmental Engineering at the National University of Singapore (NUS), pointed out that commuters, particularly those in their 50s, still prefer using physical cards such as EZ-link or tokens due to deeply ingrained behavioural experiences.

He said that despite their familiarity with the internet and mobile apps, this preference stems from decades of habit, rather than a lack of technological awareness.

"They are well-versed with perhaps at least knowing what the internet is and what mobile apps are, but they still prefer the token or physical card," Ong told Yahoo.

"The main reason is they are so used to it, that it is quite difficult for them to change behaviour. It is more like a behavioural preference than the convenience of a mobile app," Ong said.

According to its website, EZ-Link, the first large-scale contactless payment system for Singapore’s public transit network, has issued more than 40 million cards since 2002.

Beyond habits, Ong also highlighted the fear of elderly individuals embracing new technology, which often requires assistance from younger generations. He said that physical cards provided reassurance, as they give users a clear understanding of transaction amounts.

For instance, individuals may not know the price unless they travel daily. This uncertainty can lead to difficulties paying for transportation, which creates concerns about the lack of immediate recourse, Ong said.

Commuters' strong preference for viewing fare deductions and card balances at station gates and bus card readers has previously been a topic of discussion in Singapore.

The Land Transport Authority's announcement in January about making SimplyGo the exclusive system for adult fare payments by June sparked public outcry.

This led to Transport Minister Chee Hong Tat reassessing the decision and acknowledging that they had underestimated commuters' attachment to being able to view fare information and card balances.

What sets traditional vs non-traditional payment methods apart?

So, does that mean commuters prefer "traditional" payment methods?

Associate Professor Walter Theseira of the Singapore University of Social Sciences (SUSS) shared his view about the complexities surrounding payment methods on public transport, citing the SimplyGo system as an example.

He highlighted the confusion among users regarding the definition of SimplyGo, saying, "The saga in a way is confusing because people do not exactly know what SimplyGo means."

The transport expert said that some people's interpretations of "SimplyGo" range from using a mobile app and e-wallet to pay, to using the card issued by SimplyGo, or even credit cards.

Theseira said he believes there should not be a rigid categorisation of payment methods into "traditional" and "non-traditional", saying that SimplyGo encompasses various options and blurs these distinctions.

"The reality," he said, "is SimplyGo is all of these things."

He further clarified that by traditional, he was referring to using a dedicated payments platform for the public transport system, while non-traditional referred to using a payment platform of choice.

Theseira also highlighted how household incomes could influence people's preferences in the various payment methods, saying, "One of the key issues in the SimplyGo controversy is that there was a particular feature of having dedicated EZ-link cash accounts that people value."

This feature allows users to manage their budgets effectively, and real-time tracking is particularly important for lower-income individuals, whereas higher-income individuals tend to be less concerned about the specific costs of their MRT rides, Theseira said.

Ong and Theseira also stressed the importance of prioritising inclusivity and clarity in Singapore's evolving transport infrastructure to ensure ease for all commuters navigating the system.

Reflecting on the current challenges, Theseira said, "It's the general lack of understanding (from people) of what the SimplyGo system actually is all about."

Ong also highlighted the need for designing systems that resonate with users: "We can always design systems that are efficient, but we also need to design systems that are acceptable socially by the users. This is where we need a human-centric approach."

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