NETS, Singapore’s national payment services group, is looking to drive changes in the digital payments industry with new solutions and strategic partnerships to give small merchants and businesses better access to make and receive digital payments. The company, under the leadership of Group CEO Lawrence Chan, is focusing on empowering merchants and driving growth through various initiatives.

NETS has been expanding its payment options and merchant solutions. One part of this strategy is the latest SoftPOS initiative. "SoftPOS allows merchants to use their existing devices, such as smartphones or tablets, as payment acceptance terminals. This innovation reduces the need to invest in costly POS hardware and simplifies the payment process," Chan highlighted. This solution is particularly beneficial for small and medium-sized enterprises (SMEs), enabling them to leverage advanced payment technologies without significant upfront investments.

For specific sectors, NETS has tailored solutions to address unique needs. For example, for hair salons, NETS developed a system linking commission to be paid directly to individual hairstylists. For the retail segment, particularly those with multiple distribution points, NETS offers a solution for seamless inventory management across locations as well as online. In the food and beverage sector, NETS provides terminals that double as point-of-sale systems, incorporating menu displays and payment processing to streamline operations.

Looking ahead, NETS plans to enhance cross-border payment capabilities over the next 12 to 18 months. "We are working on expanding our quick response (QR) payment collaborations with partners in the region, such as what we accomplished with Thailand’s National ITMX previously," said Chan. This initiative aims to facilitate seamless cross-border transactions, enhancing convenience for travelers and supporting regional commerce.

Strategic alliances with major players like Discover Global Network and Singtel are also crucial for expanding NETS' acceptance network and enhancing cross-border payment capabilities. "Our alliance with Discover Global Network allows us to bring more payment opportunities to cardholders and more customers to merchants," Chan noted. The collaboration with Singtel leverages advanced connectivity and cloud services to accelerate the development and delivery of digital payment services across the region.

Project Nexus, which aims to standardise instant cross-border payments, is another key initiative. "Project Nexus is designed to connect domestic instant payment systems, facilitating near-instant cross-border payments," Chan explained. This initiative, led by the BIS Innovation Hub, aligns with NETS' strategy to improve the efficiency and reach of its payment solutions.

In parallel with these changes, NETS was also in the midst of a crucial transition from the old card-based NETS FlashPay Card ticketing system to the NETS Prepaid Card to enhance user convenience. The newer card offers functionalities such as on-the-go top-ups, transaction history viewing, and daily spending limits, which improve the overall user experience. NETS has clarified that it currently supports both cards in line with the Land Transport Authority’s (LTA) announcement to extend the existing adult card-based ticketing system to operate in parallel with the SimplyGo system.

However, the acceptance of the NETS Prepaid Card has not met expectations. "We recognise how important familiarity in payments is to a significant portion of our user base," admitted Chan, highlighting the challenges faced in gaining widespread adoption.

The broader context of this transition involves the consolidation of stored value functionality for transport payments in Singapore. On 9 January 2024, non-SimplyGo EZ-Link adult cards and NETS FlashPay cards were announced to no longer be accepted for public transport fare payments by the first of June. This move is part of a larger effort to transition all commuters to the SimplyGo system, which integrates various payment methods into a single platform. This change aims to simplify the payment process for commuters and enhance the functionality of stored value cards by allowing features such as remote top-ups and fare history tracking via the SimplyGo app.

Despite these efforts, the transition has faced some public criticism. Commuters have expressed frustration with the need to upgrade their cards and the inconvenience of not being able to see their card balances at fare gates. In response, the LTA has extended the existing card-based ticketing system to operate alongside SimplyGo until at least 2030, giving commuters more flexibility.

NETS continues to innovate by integrating new technologies and enhancing user interfaces. "We aim to provide secure, convenient, and efficient payment solutions," Chan emphasised. By leveraging data analytics and user feedback, NETS refines its offerings to stay competitive in the digital payments landscape.

NETS' efforts in enhancing merchant solutions and expanding regional collaborations reflect its commitment to advancing digital payments. As the company continues to implement its strategic initiatives, both consumers and merchants will look forward to more efficient, secure, and convenient payment experiences in the future.