Singapore Moving Towards a Less-Cash Society

This transition has been actively encouraged by the government. The Hawkers Go Digital programme, which subsidises transaction fees for stallholders, has been extended until the end of 2025, bringing over 11,500 hawkers into the e-payments ecosystem. In August 2024 alone, the programme facilitated 7.6 million transactions valued at S$60 million, a substantial increase from the previous year. This demonstrates a significant behavioural shift, where even the most traditional, cash-based businesses are embracing digital convenience.

However, this convenience is not without its anxieties. The experience of being forced to use cash can feel like a step back in time, involving mental calculations and the logistical hassle of managing physical notes and coins. For many, the seamlessness of a contactless tap or QR code scan has become the expected, effortless standard.

The reasons for holding onto cash are varied and practical. For some, like the elderly proprietors of small, decades-old businesses, the leap to digital infrastructure is an unnecessary complication. They operate on a foundation of trust with regular customers who know to bring cash. For others, physical money serves as a tangible way to track spending—a psychological barrier against the frictionless, and sometimes mindless, spending that digital payments can encourage.

Furthermore, the higher cost associated with cash transactions in certain areas, such as public transport, nudges consumers towards digital alternatives. Bus fares paid in cash have been intentionally higher than card fares since the 1990s to account for the greater expense of cash collection. This subtle but effective policy is one of many factors steering the public towards a less-cash norm.

While most businesses still offer multiple payment options, the transition is not always smooth for consumers. Tourists, for instance, can find themselves locked out of heartland transactions at hawker centres or night markets if they are unable to use local QR code payment apps. Similarly, system outages have exposed the vulnerabilities of a digitally dependent economy. Major service disruptions have left consumers stranded without the ability to pay, highlighting that cash remains the ultimate fail-safe—a payment method that requires no power or internet connection.

In response to these vulnerabilities, the Monetary Authority of Singapore (MAS) is actively working to bolster the resilience of the e-payments infrastructure. Upcoming "stand-in capabilities" will allow contactless payments to proceed even during bank service disruptions, ensuring a smoother experience for consumers and greater business continuity for merchants.

The parallel risk is the rise of sophisticated online scams. As more transactions move online, so do the opportunities for fraud. While seniors are often perceived as primary targets, data shows that young adults are more frequently victimised due to their higher volume of online activity. In response, banks have been phasing out less secure SMS one-time passwords and implementing features like "Money Lock" to help customers protect their savings, with hundreds of thousands of users already setting aside billions of dollars in designated secure accounts.

This dual approach—promoting digital literacy while simultaneously strengthening security—is crucial for building broad-based trust in the digital ecosystem. It acknowledges that true progress is measured not just by adoption rates, but by the confidence and safety of all users.

​For individuals, this means cultivating financial resilience by maintaining multiple ways to pay—having both digital options and a small amount of cash on hand for emergencies. For businesses, the adoption of diverse payment methods is no longer just about convenience but a core component of operational resilience. As the digital economy matures, the most successful ecosystems will be those that are not only technologically advanced but also inclusive and robust enough to withstand unforeseen disruptions. The journey continues, balancing the relentless drive towards innovation with the pragmatic need for a system that works for everyone, all the time.