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As cashless-only stores continue to pop up across Singapore, some teens and seniors feel left out
https://www.straitstimes.com/singap...o-pop-up-some-teens-and-seniors-feel-left-out
SINGAPORE – When Jiya Sharma, 15, went to Starbucks at Downtown East two months ago to study, she could not buy a drink as the outlet has stopped accepting cash.
The Secondary 3 student, who had visited the outlet weekly over the past two years, left empty-handed that day.
She also recalled having a similar experience about a year ago while trying to buy food from Wok Hey at White Sands mall, after the store stopped accepting cash.
Indeed, “cashless-only” signs have been popping up across stores in Singapore as shop owners get used to the convenience of not having to handle notes and coins, after making the switch for hygiene reasons during the Covid-19 pandemic in 2020.
This is a sharp contrast from store encounters before the pandemic hit, when many shops insisted on “cash-only” payments.
Associate professor of finance Fu Fangjian of SMU’s Lee Kong Chian School of Business attributed this to the success of the Government’s go-digital campaign.
Said Prof Fu: “Singapore’s Government has been very deliberate in driving the Smart Nation agenda... Grants under the SMEs Go Digital programme have made it easier and cheaper for merchants to go cashless.”
During a recent visit to four malls in Bugis, Orchard, Somerset and Dhoby Ghaut, The Straits Times found “cashless-only” signs displayed at 14 of 100 shops.
Food and beverage (F&B) outlets such as Chagee, Luckin Coffee, Starbucks, Stuff’d, llaollao, Tiong Bahru Bakery and Eat Pizza are among a growing list of shops that have stopped accepting cash.
Many F&B outlets told ST that the shift is driven by convenience, hygiene and customers’ preference for cashless methods.
Tea company Chagee, for one, no longer accepts cash at all of its 19 outlets in Singapore. It made the transition over the last year.
“Going cashless means shorter queues, quicker transactions and fewer errors, so customers can get their tea more quickly and consistently using the digital payment methods they prefer,” said Chagee Singapore’s head of operations Jeremy Ma.
The move also allows employees to focus on engaging with customers and preparing tea, he added.
Tiong Bahru Bakery, which has 20 outlets across the island, started its cashless-only journey in early 2020. Today, cash handling is out at all 20 outlets.
“It allows us to serve our guests more quickly during peak hours, creates a more hygienic environment by reducing the handling of physical money, and reflects the way most in our community already prefer to pay,” said Mr Matthew McLauchlan, Tiong Bahru Bakery’s general manager.
Similarly, of the eight outlets Eat Pizza operates here, only the one located in Temasek Polytechnic still accepts cash.
This is to better cater to the students there, who may not have payment cards to pay for food, said the firm’s head of marketing Jessie Ong.
“Going cashless not only streamlines operations and reduces (cash) handling risks, but also speeds up transactions and integrates seamlessly with our self-ordering kiosks,” she added.
Popular coffee chain Starbucks does not accept cash at 38 of its outlets in Singapore, out of around 130 in total.
A spokesman for the company said cashless-only stores include those in Battery Road, Asia Square Tower, Biopolis and Frasers Towers, and the decision is made based on customer profile, transaction patterns and operational considerations.
Stores in high-traffic tourist areas continue to accept cash to meet the needs of customers, said the Starbucks spokesman.
Experts said that the shift is expected as going cashless has become a lot cheaper, thanks to increased competition.
“Merchants now have more affordable plug-and-play options instead of needing costly point-of-sale systems,” said Prof Fu, adding that promotional incentives such as cashback further encourage adoption.
QR-code payment systems also charge lower commissions than traditional card networks, he said.
“This makes it particularly attractive to small businesses, hawkers and micro-enterprises, which previously avoided digital payments due to high card transaction fees.”
Prof Fu added that cashless payment methods also discourage theft and minimise human error in account reconciliation.
However, some teenagers, seniors and migrant workers said they feel left behind.
Like Jiya, student Bazil Khair said he could not catch a movie with his friends at Causeway Point in 2024 after the cinema stopped accepting cash.
“It’s annoying that I can’t even use cash for something that costs less than $10,” said the 15-year-old. He is looking forward to getting his own debit card after he turns 16 in November.
When she is out on her days off, domestic helper Dude Surya, 43, would sometimes ask others in the queue for help and pay them back in cash. “I feel frustrated sometimes, because I don’t have a bank card,” said Ms Surya, who has been in Singapore for around eight years.
Having always used cash, 66-year-old Madam Nisa Khalid said she has on several occasions struggled with PayNow.
On one occasion, a bakery cashier snapped at her for handing over a $10 note for waffles, pointing to a QR code instead. “There were about five people queueing behind me, and the cashier was in a hurry,” said the housewife. “I felt pretty embarrassed.”
She said she wished that service staff would be more understanding. “It will be less daunting for older people to switch to digital services.”
Security guard Samsul Amir, 57, said he has never been able to buy from the sole vending machine located at the community centre where he works as he does not have a debit or credit card.
Similarly, Madam Khong Kwai Kuen, 94, said she prefers to use cash when shopping for groceries as she does not own any debit or credit cards.
“Many of the shops I buy things from accept cash. If they stop doing so, I will stop buying from them,” she said.
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