'When I see physical cash, I feel happy': Why some hawkers still prefer cash payments

SINGAPORE - Among West Coast Food Centre's rows of food stalls - many of which have QR codes plastered on their storefronts - Angie Sim's noodle stall stands out with its "Cash Only" sign.

She is one of a group of hawkers who accept only cash for purchases made at their stalls, while others have adopted cashless payment methods such as payment via QR code under the Singapore Quick Response Code (SGQR) platform.

"For me, using cash is easier and more convenient," said the 65-year-old, who added that most of her customers are older, less tech-savvy, and usually carry cash.

"When I see physical cash, I feel happy," said Sim, who has worked at the food centre with her stall partner for over 20 years.

They are among stall owners across eight hawker centres in Singapore that The Straits Times spoke to who continue to resist digital payments. They cited reasons such as a lack of digital literacy, poor eyesight, and fear of inconveniencing customers while they struggle with devices.

They still jiggle coins and count paper notes even though more than 11,500 other hawkers have started using SGQR, a standardised QR code launched in 2018 to simplify e-payments from multiple mobile e-wallets.

On SGQR, hawkers need not pay the 0.5 per cent transaction fee for their first $20,000 of monthly transactions under the Hawkers Go Digital programme, which started in 2020.

On Oct 10, Enterprise Singapore and the Infocomm Media Development Authority said the fee waiver will be extended to end-2025, as part of a plan to get the 18,000 stallholders in government-run food centres on board with digital payments.

At ABC Brickworks Market & Food Centre, a drinks stall owner in his 70s, who declined to be named, said he has trouble remembering how to navigate digital platforms due to his age.

"If I learn today, I will forget tomorrow," he said, adding that he also has eyesight problems, and it would be difficult for him to check whether payments have gone through, especially during peak hours.

"If customers do not have cash, I will still make the drinks for them... They usually come back and pay us another time," he said, adding that he may retire soon.

An Albert Centre Market and Food Centre drinks stall owner, who wanted to be known only as Tan, said it is "very troublesome" to use e-payment. "I still have to check if the transaction has gone through," said Tan, who is in his 60s.

A 60-year-old vegetarian food stall owner at Alexandra Village Food Centre said she is afraid that customers may tell her the payment has gone through when it has not.

She added that most of her customers use cash, and in a day, only one or two customers will not purchase her food as they do not carry cash.

Cornelius Tan, 38, who sells cuttlefish at Chinatown Complex Market & Food Centre, said hawkers, especially those who are more senior and detached from the digital world, may find it harder to get out of their comfort zone.

"They prefer to hold physical cash as they feel comfortable and safe, knowing nothing can go wrong when the cash is with them," said Tan, who is chairman of the Chinatown Complex Hawkers' Association. "It gives them a sense of security."

Some have also been put off by latency issues where the transaction takes some time to go through, especially during peak hours, he said.

But those who have gone digital say e-payments are convenient. Some even reported an increase in sales, particularly from younger customers.

Madeline Chen, who operates a braised pork stall on her own in Chinatown Complex Market & Food Centre, said digital payment reduces the hassle of handling cash, especially when she is busy. "Some of my regulars even took a photo of my SGQR and pay me before they come to pick up their food," said the 46-year-old.

Lim Yaw Fook, who sells prawn noodles in Bendemeer Market & Food Centre, said sales have increased by about 20 per cent since 2020 when he started using SGQR, as more younger customers have started to patronise his stall.

Lim, 70, said some of his customers from China also prefer to use SGQR, which works with China-based apps Alipay and WeChat Pay.

Some hawkers use their personal PayNow QR code or mobile number - instead of SGQR - to receive payments. PayNow is an instant funds transfer system that links users' mobile or NRIC numbers to their bank accounts.

"It is not hard to use and the money goes straight into my bank account," said 67-year-old hawker Sam Tan, who has a fish head dish stall at 75 Lorong 5 Toa Payoh.

Thus, the pool of digitalised hawkers may be larger than the reported 11,500.

Citing a report, Dr Lee Yen Teik, a senior lecturer in finance at NUS Business School, said 87 per cent of small businesses reported improved operations after adopting digital payments, such as better customer retention.

However, he said any transaction fee will eat into hawkers' already-slim profit margins amid today's high inflationary environment.

Indeed, Jaleel Sheikdawood, 42, owner of an Indian food stall at Albert Centre Market and Food Centre, said he uses PayNow because it is free, and he will switch out of digital payment tools if he needs to pay a transaction fee.

Enterprise Singapore and SG Digital Office said the Hawkers Go Digital subsidy was introduced to kick-start the adoption of e-payments.

When asked if the waiver would be extended for good, they said the Government will assess the situation before they decide on the next steps for the programme beyond 2025.

Associate Professor Cindy Deng, co-director of the Centre for Sustainable Finance Innovation at NTU's Nanyang Business School, said digitalisation helps to reduce the risk of theft and improve record keeping.

But cash still has a place in society, she said. "Cash remains important for the older generations today, and also serves as a reliable backup during events like disruptions to digital infrastructure."

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This article was first published in The Straits Times. Permission required for reproduction.