Do you Know the Difference Between your Contactless Payment Solutions? Visa PayWave, Mastercard Contactless & NETSPay?
Imagine a day in the near future, where you would no longer need to bring out a bulky wallet that contains all your different credit cards, dollar bills and all your loose coins that jingle in your pockets. Instead, as long as you have a NFC SIM card that is compatible with NFC mobile devices, you are able to make payments through your phone instead of bringing out the many different credit cards and cash you have with you.
That reality is getting closer by the day.
Singapore will be the first country in Southeast Asia to adopt a contactless fare payment solution when it comes to public transport. Envisioning a “hands-free” fare payment system, making payments for your MRT, bus, and taxi fees without the need to make payment via physical cash.
There are several contactless payment solutions that are already in operation currently, and here’s a brief introduction of each payment solution and its benefits that can help to truly enhance your daily life.
If you have a couple of credit cards with you, the Visa logo would not be a stranger to you. Visa is a financial service corporation that were one of the pioneers to introduce “payWave” into Singapore several years ago.
As long as the merchant or retailer has a cashless symbol on its machine to process payments, you are able to make transactions by simply waving or tapping your card on the device. The payment will be processed digitally, allowing you to shop effortlessly.
Do keep a look out for this symbol above as you will be seeing it more often in the coming future. This is the universal cashless payment symbol. As long as this symbol is present, you will be able to make your payments with the given device that is compatible with your card company. Visa has enabled them all cards to be PayWave compatible.
Recently, they have also started their Visa payWave for mobile by partnered up with Android and Samsung where you can download their Android Pay or Samsung Pay app from Google play store or launch the wallet app on your iPhone.
Add a Visa compatible card easily into your digital wallet by snapping a photo of the card. From that point, you would be able to select the specific Visa card you want to use to make your purchase by simply launching the app and flashing it over the device.
Being one of the major financial service providers globally, Mastercard wants its consumers to “Tap & Go”. Hassle free and convenient transactions including retail pharmacies, retail shops, fast food chains, and even convenience stores. They have also collaborated with Android Pay and Apple Pay to offer a contactless payment solution to its cardholders. It works similarly as Visa’s payWave but it went the extra mile by developing another useful app.
MasterCard has also worked with Apple to integrate Apple Pay and launched their MasterCard nearby app to assist users to locate local retailers that are near them who accepts MasterCard contactless payments.
MasterCard is also looking into allowing users to enable their Fitbit, accessory or any wearable device into a cashless payment device. As of now, the only modes of cashless payments are only on mobile and card, as it is for Visa.
Hot on the heels of the big players Visa and MasterCard, Singapore’s very own NETS payment network has also come up with their own version, NETSPay.
NETS is a local leading payment services company that has been around in Singapore for as long as one can recall. It is also recognized as a national payment system by the MAS (Monetary Authority of Singapore). NETS is collectively owned by the major local banks such as DBS, OCBC, and UOB.
Being the leading debit payment services in Singapore, NETS have already evolved from their early days. Debit and Credit are now available, from point-of-sale (NETS) to online (eNETS), mobile payments (NETSPay) and FlashPay card.
That was followed by the release of their NETSPay app. This is a mobile application that allows consumers to make their payments in a similar fashion such as VISA & MasterCard, but with a local twist to it.
While Visa and Mastercard offered a solution for their own payment platform, NETS sought to provide a more comprehensive solution. NETS partnered the major banks such as DBS, OCBC and UOB to offer Singaporeans a unified way of making payment.
By 2Q2018, the seven banks listed below will be taking part in this initiative. These are also the banks most commonly used by Singaporeans.
In fact, NETS’ $30 million investment to create a unified QR code platform would be the first fintech innovation of its kind to be offered in Singapore.
With the inception of this unified NETS QR code, customers who have been using individual bank’s respective apps will no longer find it a hassle anymore. NETSPay will accept payments from DBS PayLah!, OCBC Pay Anyone, and even UOB Mighty. The rest of the other four foreign banks would offer their services shortly after.
Besides integrating the payment system with retail outlets and the public transport systems, NETS wants to encourage the adoption of this system into the hawker centres. NETS announced that it would be waiving all terminal and transaction fees for 3 years for hawkers, and would be working to improve its settlements process to allow same-day settlement.
So what’s the difference?
Take a closer look at the credit cards you have. Not all cards by local banks would have a Visa or MasterCard logo. That means if you had certain cards that are Visa preferred, you would have to open up your Visa payWave app to pay. For the Mastercard credit cards, you would have to open the Mastercard app.
That is the one and only obvious difference that can be seen between Visa payWave, MasterCard Cashless and NETSPay. NETSPay allows consumers the convenience of making all their monetary transactions through a single app.
Read also: The pros and cons of going cashless