POSB’s cashback service has increased the number of heart merchants by nearly 40 percent on weekends, with more customers turning to scanning to pay.
Starting August 1, the first 75,000 people who use the DBS PayLah app to shop on Saturdays will receive $3 cash back at more than 22,000 convenience stores, wet markets and retail outlets, as part of POSB’s Support Our Heartlands initiative.
In an update on the event on Oct 13, DBS Bank said sales across all merchants on Saturday and Sunday have increased by nearly 40 percent, and one million cashback prizes have been redeemed so far.
Senior citizens and those earning less than $2,500 a month make up 39 percent of these recipients, it added.
Retailers in the wet market were boosted, with PayLah usage tripling among customers and spending doubling in their stores, DBS said. POSB is part of the DBS Group.
The campaign, which will run until December 31, aims to reward over two million cashbacks and discounts at Sheng Siong supermarkets and supermarkets.
DBS said the areas with the most redemptions are Serangoon, Hougang, Sengkang, Punggol, Jurong, Queenstown and Tiong Bahru.
The bank made the announcement at a public event held at Toa Payoh West Market and Food Centre. There were activities related to digital literacy and fraud prevention for residents.
Madam Ivy Tan, 63, and her husband have been running Jasmine Florist in the market for 13 years. They started accepting PayLah payments during the pandemic.
He said the business took off after the introduction of the POSB cashback scheme, which attracted both young and old customers.
“Weekdays are regular, but weekends are busy because of that,” he added.
The neighboring shop, Jin Fruits, has been in the market for over 30 years. It is run by Lim Teck Hee, 57.
“On Saturdays, elderly customers come from 6am,” he said, adding that many use PayLah to enjoy cashback.
However, some still prefer cash because they find it difficult to use their phones, he said. They help those who have trouble running the program.
Transport Minister Chee Hong Tat, who participated in the event, said in his speech that there will be support for the elderly who are not comfortable using modern services. He assured residents that face-to-face meetings are still the way to go.
“The most important thing is to be able to help residents of all ages, not just young people but also our middle-aged and elderly residents, to feel safe, and that you have confidence in using these digital services,” he said. Mr Chee said, adding that this is in line with many digital and financial initiatives.
As the Government promotes digital solutions and services, it will ensure that there is enough support so that no one is left behind, said Mr Chee, who is the MP for Toa Payoh West-Thomson ward in Bishan-Toa Payoh GRC.
On its part, DBS has piloted a program to improve digital literacy among small businessmen in Nee Soon Link, Tampines West and Toa Payoh West.
Since September, more than 50 bank volunteers have visited merchants in these areas and conducted three digital learning sessions.
From November 2022, DBS Foundation and the Infocomm Media Development Authority will also conduct over 600 training courses for over 110,000 people to improve their digital skills.
These programs help entrepreneurs who fall through the cracks, said DBS country manager Han Kwee Juan.
He said that the initial results of the POSB cashback initiative are encouraging.
He said it extends DBS’s 5 Million Hawker Meals scheme, which started in February 2023 to July 2024, with a total of about 8 million. The system gave back money to users up to $3 to use the PayLah app to pay for food on Friday, mainly to benefit vendors in the Central Business District.
With the new system, local shops – including wet markets – and coffee shops now make up 50 percent of those receiving incentives, while retailers make up the remaining half.
When asked if DBS will expand the POSB service after it expires in December, Mr Han said the bank will decide whether to continue with its strategy or explore other ways to support retail traders.
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