SINGAPORE: In a time of credit card points, flashy new digital banks, trends like "buy now, pay later" and even Big Tech wanting a slice of the pie, the man at the helm of Singapore payment provider NETS readily admits it is tough to be the preferred mode of transaction.

In particular, NETS may not be the go-to payment option for larger ticket transactions or luxury goods – but it holds its own when it comes to everyday spending, said group chief executive officer Lawrence Chan. 

What started 40 years ago as a two-month pilot project to promote cashless payments at 39 participating outlets now has more than 150,000 payment points around Singapore, facilitating millions of transactions daily.

The introduction of QR codes and contactless payment has also led to NETS being used more often, with the company recording an increase in transactions every other month and hitting new milestones in recent times.

With the market for NETS continuing to lean towards smaller transactions, it makes scaling the business "extremely" important, said Mr Chan, adding: “When you come into payments, we like to say it’s a 'one-cent two-cent' business."

HOW DOES NETS WORK?

The original idea behind NETS was to bring the automated teller machine or ATM experience to the point of sale. 

Just like using a Personal Identification Number to withdraw cash, customers can enter their PIN to pay for transactions wherever they are.

NETS was first introduced in 1985 for 10,000 ATM card holders from five local banks, which formed a consortium that founded the company. NETS is now owned by DBS, OCBC and UOB.

This group of people could make cashless payments at selected government offices, supermarkets, department stores and petrol stations.

It was part of a national campaign to promote cashless transactions and minimise cash ones, after it was estimated at the time that the government could save S$24.5 million (US$19 million) in labour costs.

The campaign had two other goals: Encourage Singaporeans to receive their salaries via direct credit to their bank accounts; and p...