The agreement between the Land and Transport Authority and Mastercard have been signed by both parties for the new system called the Account-Based Ticketing System which will allow commuters to tap their registered credit and debit cards for the payment of their bus and train journeys.
This new system is said to eliminate the need for a separate transit card and fare top-ups which will the reduce the hassle.
In their joint press release on Monday (July 25), LTA and Mastercard stated that the new system will be launched by the end of the year in hope to provide commuters with a more convenient way to pay for public transit and enhanced travel experience. They aim to attract at least 100,000 users for the pilot.
Commuters who use this payment method will have their transaction billed on their credit or debit card. LTA also said that it is working allowing the commuters to track their journey and fare history via a mobile application or web portal.
Chief Executive of LTA, Mr Chew Men Leong, said “We are pleased to partner Mastercard as we work towards piloting this new fare payment system in Singapore. Through this public-private partnership, we look forward to the start of the pilot at the end of this year, when commuters in Singapore can be one of the first in Asia to experience this additional fare payment option. With this new option, they will be able to do away with the hassle of topping up their fare cards.”
Group head and general manager Mastercard Singapore, Ms Deborah Heng, commented, “This collaboration with the LTA marks an important milestone for Mastercard as we take a big step towards our vision of building a cashless society by embedding digital payments and reducing the overall reliance on cash to make travel more inclusive.”
She added, “As the contactless payments space continues to evolve, consumers will have different options to tap and pay securely at transit points, from their Mastercard contactless cards to mobiles phones and even wristbands and watches. With Singapore’s digitally savvy population, we are confident that the integration of Mastercard contactless payments in transit will resonate well with commuters.”
Both parties said that the details will be announced soon.