New e-payment system and next generation card for public transport
By Imelda Saad, Channel NewsAsia | Posted: 26 August 2008 1621 hrs

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SINGAPORE: All EZ-Link cards, the stored-value cards used to pay for train and bus rides, will be phased out starting next year.

Starting August 29, the Land Transport Authority (LTA) is piloting a trial of its next-generation smart cards which can be used across systems.

The new cards look just like the current EZ-Link cards. But the difference is the markings on the card which indicate that it can be used for multiple applications like car parks or ERP payments, or even to pay for shopping.

Currently, public transport commuters use the EZ-Link card to pay for their fares, while motorists use a CashCard to pay for Electronic Road Pricing (ERP) rates and parking charges.

Lim Bok Ngam, deputy chief executive, Infrastructure & Development, LTA, said: "Under today's system, public transport and the non-public transport are two separate sectors. So those who take public transport make use of EZ-Link Card and those who drive (through) ERP (gantries) make use of Nets CashCard.

"Going forward, we want to develop a system whereby one card can be used across all the systems - which means transit and non-transit. Also we want to introduce competition, so hopefully bring down the cost for commuters."

Commuters now pay S$5 for EZ-Link cards without any stored-value. The new smart card also does not require a S$3 deposit. Currently, the EZ-Link card has a S$3 travel deposit, which is not shown as part of the card balance.

But those with the new card will not be able to use it at merchants which currently offer payment by EZ-Link, unless these merchants upgrade their card readers.

The LTA is pumping in about S$100 million to develop the new system.

These include the upgrading of the card readers at trains and buses as well as the printing of the new CEPAS-compliant cards. There are now about 10 million EZ-Link cards issued. Half of them are active, of which some 2.5 million are regularly in use.

Mr Lim said: "All these are commercial decisions to be made by the card issuers so if they want to compete in the market and they want to ensure that their cards are widely used for all sectors, then I think they have to build up their business model."

There are currently two card issuers in Singapore - EZ-Link and Nets. LTA said the new system can support up to four card issuers in the market.

Some 10,000 commuters will be involved in a two-month trial of the new smart cards which are Contactless ePurse Application (CEPAS) compliant.

Details of the replacement exercise will be announced later in the year.

With the new CEPAS-compliant card, the CashCard is not needed if a vehicle is fitted with the second generation IU.

All new cars will be fitted with the second Generation IUs from next year. Meanwhile, new motorcycles will come with the new IUs from the end of this month. - CNA/vm