News

NETS Supports Open Competition Across the Board

Tuesday 29 June 2004 00:08 CET | News

NETS supports competition if it benefits consumers and it should not only be limited to the ERP system, NETS CEO Poh Mui Hoon said today.

Ms Poh was commenting on a report that the Land Transport Authority (LTA) was considering allowing motorists to use its own ez-link card to make ERP payments, which can currently only be made with the CashCard. This would put the ez-link card in direct competition with NETS CashCard, which was the only mode of payment for the ERP when it was introduced in 1998. NETS firmly believes in open competition as long as it benefits consumers. We already compete at a number of levels with ATM cards and credit cards. If the LTA wishes to open the ERP up to competition, then it should have a level playing field and also open up the trains and bus payment systems to competition. MRT and bus users would benefit because they would have more choice and a cheaper proven alternative option as the CashCard can also be used to buy goods and services at 30,000 points of access across 19,000 merchants in Singapore. The number of locations accepting CashCard is increasing all the time and transaction rates are considerably cheaper than credit card transaction rates. With the large volume of EFTPOS transactions processed by NETS, CashCard has the efficiencies that come from economies of scale, and these savings lower the cost to merchants. NETS has a 20-year history of successful operations in Singapore and its CashCard is free to consumers, as well as being known and trusted. In addition, NETS is well positioned to provide services for other parties looking to enter the Singapore electronic payments market. NETS is already working with Standard Chartered Bank in its EFTPOS network, and is open to discussions with the other qualifying full banks to explore their needs and offer a service for them, Ms Poh said. This could include providing switching facilities and managing the network for the QFBs. Ms Poh added that NETS had successfully managed the ERP payment system since it was introduced in 1998. Changes made to the system should not be rushed and would have to be managed carefully so that consumers are not inconvenienced, she said.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce