1 in 2 fares will be paid through contactless modes by 2024: UOB

LTA's SimplyGo contactless payment system will launch on 4 April.

From 4 April, Mastercard cardmembers can tap their cards and simply go on board a bus or a train following the launch of the Land Transport Authority's SimplyGo initiative that enables commuters to use their contactless bank cards to pay for their fares, an announcement revealed.

With the  launch of SimplyGo and the eventual acceptance of all credit and debit card payment for train and bus rides, UOB said that it expects that one in two fares will be paid through this payment mode by 2024.  

UOB was appointed by the LTA to process credit and debit card payments at fare readers.Together with LTA, TransitLink and Mastercard, the Bank piloted the use of contactless payments for transit in March 2017.

According to a UOB survey, two in three commuters say that they plan to use their credit or debit card for contactless transit payments.

“Such consumers are much more likely to make contactless card payments in other areas,” the bank said in a statement. “For example, UOB cardmembers who pay for their bus and train rides with their contactless credit or debit card also increased their overall contactless spend, which includes other products and services, by 51%.”

The survey also 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, include paying friends (83%) or grocery shopping (82%).