COMMUTERS will now have two payment cards to choose from to use on buses and trains, to pay for road tolls and carparks, and to make purchases from stores, eateries and entertainment outlets.Yesterday, Nets (the Network For Electronic Transfers) launched its long-awaited multi-purpose contactless card, the first to break EZ-Link's longtime stranglehold on the $1.3 billion transit market.

Like ez-link, the Nets Flashpay card has multiple uses, giving consumers wider modes of payment at a greater range of outlets.

In November, local banks UOB and OCBC will come on board, followed by DBS next March, to offer bank debit cards that also double as Flashpay cards. This means customers can top up their cards directly from their bank accounts.

EZ-Link launched a similar contactless multi-purpose card in January, three years after the Land Transport Authority announced it would liberalise the transit market, allowing up to four operators to offer multi-purpose cards.

To steal a march on the competition, EZ-Link said all 4.6 million old cards in use had to be converted to the new ones for free by Wednesday this week.

Nets is dangling its own carrot for consumers. If they buy a Nets Flashpay card as long as stocks last, they get up to $7 worth of additional free stored value.

Retailers have welcomed the extra choice. Snack chain Old Chang Kee also liked the snappy mode of paying just by tapping a card.

'We offer quick snacks to customers, who expect to pay and leave promptly. This shortens the process and cuts down on queues, as we don't have to wait for customers to fish for change,' said chief executive William Lim.

'The second advantage is hygiene. The food handlers do not have to handle cash, which can be dirty.'

Nets eyes business from small outlets

Nets has built up a network of 2,500 retail stores - its traditional strength - where the new cards can be used, and is looking to expand gradually.

But EZ-Link has not been resting on its laurels, having established more than 5,000 retail points.

Nets has estimated there is $1 billion worth of transactions in the 'quick payments' market - stores which mostly handle cash for small ticket items that potentially can be converted to electronic payments.

'We believe we can capture a significant portion of the market, given our 13 years of track record,' said Nets chief executive Poh Mui Hoon.

She said one million transit cards are sold each year.

Responding, EZ-Link's vice-president for marketing and communications, Mr Gregory Gerald Danker, said: 'Competition is good for the industry.'

Having two players in the market will, however, throw up some inconvenience for both commuters and merchants.

Though both cards can be bought at the TransitLink ticket offices in train stations, the cards must be topped up at two different machines - the current EZ-Link machine and the new Nets kiosks available at six stations for now.

This is despite the two being on the same technology standard - Cepas, or Contactless e-Purse Application Standard-compliant - a next-generation contactless payments system.

A common top-up system 'is a matter of time', said Nets assistant chief executive Suman Balani, citing commercial reasons for the lack of one now.

But the battle by both providers to make inroads into each other's traditional strongholds - Nets in retail, parking and ERP payments, EZ-Link in transport - has meant a happy outcome for commuters, one of more choice, with the possibility of sweeteners from each provider.

Housewife Ms Doris Lee, 40, said, 'I don't really need two similar cards for public transport. If both cards had different benefits, that would be better.

However, she added: 'I will consider getting the Nets card to buy things at places for when I don't have enough cash.'

tanwz@sph.com.sg

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