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Go cashless, but pay cash tray deposits: Experts say ‘mixed’ messages confusing for some

SINGAPORE ― Following news this week that automated tray return systems, which involve customers paying deposits for their trays, could be rolled out in as many as 25 hawker centres, some observers and experts said this seemed at odds with Singapore’s cashless drive, and could be “slightly confusing” to the average customer.

SINGAPORE ― Following news this week that automated tray return systems, which involve customers paying deposits for their trays, could be rolled out in as many as 25 hawker centres, some observers and experts said this seemed at odds with Singapore’s cashless drive, and could be “slightly confusing” to the average customer.

On Monday (Jan 29), the National Environment Agency (NEA) said that the Marsiling Mall Hawker Centre and refurbished hawker centre at Block 163, Bukit Merah will charge cash tray deposits of S$0.50 and S$1 respectively.

This is in tandem with the introduction of automated tray return systems and centralised dish-washing services aimed at boosting productivity. Other hawker centres in One-North and Yishun managed by the Timbre Group also use similar tray return systems.

The news came a week after an announcement by NETS and EZ-Link that ez-link and concession cardholders will be able to pay for their food and drinks at some 1,000 stalls in more than 30 hawker centres here from April.

Mr Michael Yeo, a research manager at IDC Financial Insights, said that this would send “mixed” messages of encouraging payment through cashless means, while getting customers to fork out cash deposits for trays.

“Such cases are quite common in governance though, when two different departments are handling two different issues which belong in different domains,” he said.

He added that the authorities should exercise care so that further messaging regarding the Hawker Centre 3.0 Committee’s vision does not lead to “what might be interpreted as confusing public communications”.

The Hawker Centre 3.0 Committee aims to review and make recommendations to the Government on the management and design of new hawker centres, and offer suggestions to sustain and promote hawker trade.

Other experts felt that the tray return system could be a short-term measure to shape social behaviour, with one of them pointing out that the system works because it involves cash, much like how supermarket chains require customers to put in a S$1 coin to unlock trolleys to ensure these are returned.

For Mr Yeo, it would be beneficial to consumers if there was some “rationalisation of these two systems later on down the line”, such as integrating cashless payments with the tray return systems, for instance, and efforts to come up with a viable system, he said.

An EZ-Link spokesperson told TODAY that these are two different issues, as one incentivises customers to return a tray, while the other encourages more hawkers and merchants to accept and promote e-payments.

However, the spokesperson also added that is “important to offer an integrated cashless hawker centre experience” as it will encourage consumers to do away with cash altogether.

“We also think that e-payments can be used as a platform to encourage consumers to return trays in a more efficient and cashless manner where refunds can be made seamlessly back to the card, and the refund amount (or incentive) can be adjusted dynamically based on consumer behaviour,” said the spokesperson.

Agreeing, sales representative Ms Lam, 36, who regularly patronises Marsiling Mall Hawker Centre, felt that seniors would be more comfortable with using familiar platforms like ez-link cards for tray return systems, rather than switching to new modes.

Ultimately, “cash is still king in hawker centres”, and it will take time to overcome customers’ deeply ingrained habits, said associate professor of marketing Hannah Chang from the Singapore Management University’s Lee Kong Chian School of Business.

Rather than rush to implement various cashless systems, tray-return systems and other changes, Prof Chang said it was better to “take it one step at a time”.

“You want to make sure everyone is comfortable before you move towards a completely cashless system in society,” she said, adding that more creative consumer education efforts are needed to remind people to return trays.

Spire Research and Consulting’s deputy chief executive Japnit Singh also warned of the risks in going cashless, particularly when cards — especially those that are not secured — go missing or are stolen.

While consumers have learnt how to use cashless payments, they might be “not so ready at this stage to accept digital refunds”, as it might not be perceived as credible enough, he said.

Using the example of the S$1 deposit for supermarket trolleys, Mr Singh said customers would feel more “reassured that they have real money, a coin in their hands”.

Some customers were also concerned that cash deposits for tray return systems could be hit by glitches.

“The money might not drop out, or the machine might not be working, so (for me going cashless) would give assurance,” said Ms Summer Boo, 37, a regular patron at Marsiling Mall Hawker Centre.

She also felt that the concept would be easier to implement in food courts, as more seniors patronise hawker centres and they may be less adept at using cashless systems.

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