MAS Annual Report 00/01 - Payment Systems

The financial sector has seen significant technological advancements in recent years. These improvements have brought about operational efficiencies and economies of scale to service providers, and convenience to consumers in terms of the range and accessibility of services provided.

MAS Electronic Payment System

On 13 July 1998, MAS launched its Electronic Payment System (MEPS) – a real-time gross settlement system for Singapore Dollar high-value interbank fund transfers and the delivery-versus-payment (DvP) settlement of scripless SGS. As at 31 December 2000, there were 136 banks participating in MEPS, of which 91 banks were direct participants. In 2000, the number of MEPS transactions increased by 2.2% to 1.9 million. In the same year, the value of MEPS transactions cleared was $9.6 trillion, 3.7% higher than in 1999.

Cheque Clearing

In 2000, the number of cheques processed by the Automated Clearing House (ACH) decreased slightly by 1.0% to 91.3 million cheques. The value of cheques cleared per year also fell 7.4% to $453.2 billion. (See Chart 17.)

Interbank GIRO

Launched in April 1984, the Interbank GIRO (IBG) system allows a customer of a participating bank to transfer funds, through direct debits and credits, to the accounts of customers of any participating bank. In 2000, the usage of the IBG system increased by 2.0% in volume and 9.1% in value. A total of 30.0 million IBG transactions valued at $72.1 billion were cleared through the ACH. (See Chart 18.)

eGIRO

The ACH is enhancing the existing GIRO system to a browser-based eGIRO system. Targeted for launch in the third quarter 2001, the new system eliminates the manual delivery of magnetic tapes between participating banks and the ACH by allowing participating banks to send and receive GIRO items electronically via a secured communication network. In addition, instead of the current manual
procedure for returns processing, the proposed eGIRO system will provide for automated processing of returned items through the ACH. This eGIRO system will enhance the payment infrastructure to support e-payment initiatives within the industry. With eGIRO, clearing cycles for direct credit and debit transactions could also be shortened significantly.

Automated Teller Machines

In 2000, the number of ATMs decreased by 3.3% to 1,794 machines, representing a penetration rate of about 446 ATMs per million persons.

AceNet, a coalition of four local banks (OUB, UOB, KTB and OCBC), was announced on 6 November 2000. AceNet will be marketing and managing an integrated off-site ATM network. While this development will be transparent to consumers, its implementation will lead to increased ATM access and an improved range of services for customers, as well as cost savings through increased economies of scale for the participating banks. AceNet will provide operational and technical services such as ATM cash replenishment, machine maintenance, upgrading of the network as well as the development of infrastructure and other ATM-related services.

Electronic Funds Transfer at Point of Sale

EFTPOS was established in January 1986 as a nationwide infrastructure to enable Singaporeans to pay for purchases at the point-of-sale using their ATM cards. As at end-December 2000,this mode of online debit payment was available at more than 12,000 retail outlets including major supermarkets, department stores, petrol stations and government institutions. With 19,500 terminals in 2000, up from 17,800 in 1999, the total volume of EFTPOS transactions increased from 65.7 million to 76.9 million, while the total value of EFTPOS transactions increased from $4.1 billion to $4.8 billion. (See Chart 19.)

CashCard

The Network for Electronic Transfers (S) Pte. Ltd. (NETS) introduced its CashCard, a multi-purpose stored value card most suited for small-value transactions, in 1996. The number of CashCard transactions increased by 30.0% from 77.0 million in 1999 to 100.1 million in 2000 while transaction value increased by 97.7% from $87.3 million to $172.6 million.

The increase in CashCard transactions over 2000 followed the introduction of several new applications in 2000. These included the use of CashCards for the payment of parking fees, vending machine purchases, taxi fares, as well as the payment of toll and Vehicle Entry Permit charges at the Singapore-Malaysia checkpoints. Internet and mobile phone top-up services were also introduced to increase the number of revaluation channels, which include ATMs, self-service kiosks, HomeNETS and selected petrol stations. (See Chart 20.)