Top 10 Reasons Why Adoption of Cashless Payment is Slow at Hawker Centre and Wet Market?

Cashier and Customer at Checkout

Have you ever encountered a situation when you realize you do not have sufficient cash to pay for your purchases in a hawker centre or wet market, the stall owners do not accept digital payment and ask you to withdraw cash from the nearest ATM? It can be embarrassing and frustrating, isn’t it?

There are several reasons why digital payments are slow to implement or adopted at hawker centres and wet markets.

1. Wet market stalls are largely operated by seniors

Most of the wet market stall owners are seniors aged over 60 years old and do not own smartphones. They are not digitally savvy and are wary of being cheated from fraudulent digital payments.

Payment Screenshot on Phone

2. Customers taking advantage of senior stall owners during peak periods

Some customers get away with the actual payment by showing older screenshots of their past recurring transactions or quickly cancel transactions after flashing the pre-payment page. During peak periods, the stall owners would have started attending to the next customer, hence would be preoccupied to closely inspect the digital payment on mobile devices. Moreover, some of them have poor eyesight and could not see the amount flashed briefly before them. One way to avoid this situation is to install the payment terminal, where the receipt can be printed out when the payment goes through. There is a monthly recurring fee to maintain the terminal.

3. Customers are Seniors too

Most seniors prefer handling cash as they do not own a smartphone and are not digitally savvy.

4. No unified payment methods

Before SG QR was rolled out in september 2018, there was no unified payment gateway. The various e-payment methods (e.g. PayNow, PayLah) are new and confusing to the general masses, not to mention the seniors.

Payment Terminal

5. Implementation of digital payments is not widely available

Prior to the Hawker Digitalization scheme, stall owners have to go through a difficult process to apply for digital payments for their stall business. The situation improved when NETS stepped in to help stall owners.

6. Suppliers prefer cash on delivery

Most suppliers to wet market stalls ask for cash on delivery. If customers make digital payments, stall owners would not have sufficient cash to pay their suppliers and have to withdraw cash from ATM. The Business to Consumers and Business to Business payment modes have to be unified to accelerate adoption of digital payments. 

7. Slow in completing the transaction

Stall owners need to tabulate the total amount for all items purchased. Instead of preparing cash payment upfront, customers only prepare the digital payment upon collection of the goods. This will lead to a slow down during busy periods where there’s queue to purchase items.

Bank Book

8. Hassle printing bank book via ATM to view transactions due to lack of access to internet banking

Some stall owners may not know how to use internet banking to view their digital transactions. The only way to check the transactions is to print their bank books via ATM and tabulate the amounts collected. Hence they prefer counting the actual cash collected which is more straightforward.

9. Customers have a ‘fixed’ budget

Some customers have a fixed budget when patronizing the wet market. They kept to the budgeted amount to purchase food ingredients and supplies for that week. If customers use digital payments, they would have to track and tabulate their purchases to ensure they did not exceed the budget for the week.

10. Concern that everything is tracked

Not everyone is comfortable with digital platforms due to prevalent hackers attacks and scammers.

Leave a Comment

Scroll to Top