Cash still holds a place in Singapore amid cashless shift

SINGAPORE: Sections of Singapore society are still holding on to cash amid a broad shift towards a cashless society as part of the Smart Nation vision. This is changing how transactions happen.

Mobile apps like DBS PayLah!, GrabPay, and NETS, plus contactless cards and PayNow, have made digital payments easy. And alternatives like XAPO which allow users to directly pay from Bitcoin.

Research firm Research and Markets predicts that Singapore’s prepaid card and digital wallet market was worth S$12.37 billion (US$9.66 billion) in 2024. This is set to reach S$19.86 billion (US$15.51 billion) by 2029.

However, despite Singapore’s growth in digital payments, a week-long cash-only experiment by CNA in June 2025 shows the strong presence of cashless systems while also highlighting the ongoing need for cash. And it also raises questions about the costs and benefits of the digital shift.

The advantages of going cashless are clear. Transactions are fast, saving Singaporeans the trouble of carrying cash or counting change in a busy city. Digital payments permit accurate financial tracking, with tools like DBS NAV Planner providing insights into spending habits.

Government support via the Smart Nation scheme and widespread tools like PayNow amplify the benefits of going cashless. Singapore’s efficient infrastructure and tech-savvy population make convenience, cost savings, and efficiency particularly impactful.

Businesses and the government also save a lot of money. In 2016, KPMG estimated that cash and cheque handling cost Singapore S$2 billion each year. The Monetary Authority of Singapore (MAS) reports e-payments doubled from S$627 billion in 2018 to S$1.25 trillion in 2023, showing efficiency gains.

The COVID-19 pandemic accelerated this. Businesses like Decathlon (cashless since June 2020, offering 15 payment options) and 39 Starbucks outlets are going entirely cashless to reduce contact and simplify operations. Environmentally? Fewer banknotes decrease the ecological cost of printing and disposing of currency.

However, the cash-only experiment revealed some challenges. Higher bus fares (S$1.90 compared to S$1.19 for cards) and MRT’s card-only payment systems exposed the inefficiencies of cash. Long lines at cash counters at Don Don Donki contrasted with quick digital self-checkouts.

Singapore’s small businesses must also deal with payment processor fees that cut into profits. Meanwhile, cross-border digital transactions can result in delays and higher costs. Accessibility is another major issue—elderly citizens, low-income groups, and tourists often depend on cash.

A survey by CNA at 50 shops at Parkway Parade and 42 hawker stalls found most still accept cash. Other small businesses remain cash-only because the owners are not familiar with technology.

Security and privacy risks are also signs of concern. While Singapore’s digital infrastructure is strong, the rise of online scams reveals vulnerabilities. Digital payments can reduce anonymity, unlike cash.

Another challenge is technological dependence and financial inclusion of at-risk groups. A system outage like what DBS payment channels went through in 2023 can disrupt transactions. This is despite MAS requiring banks to ensure systems recover within four hours.

A balanced approach is required that leverages Singapore’s strengths while tackling weaknesses to maximise the benefits. This ensures an inclusive cashless future. The most practical way forward? Maintaining support for both cash and digital payments in daily life.