Since LTA’s announcement on 22 January 2024 that LTA would extend the CBT (card-based ticketing) system for adult commuters till at least 2030, the proportion of adult commuters using SimplyGo has continued to increase, Transport Minister Chee Hong Tat revealed in Parliament (5 Feb 2024)
In December 2023, 41% of adult commuters were using bank cards and mobile wallets for public transport, while another 23% of adult commuters were using SimplyGo ABT stored value cards. In total, 64% or about two-thirds of adult commuters were using the SimplyGo ABT system in December 2023.
From 23 to 31 January 2024 (after LTA’s announcement to extend the CBT system) about 9,000 adult commuters, or around 1,000 per day, have converted their CBT cards to the SimplyGo system.
Close to 70% of adult commuters are now using SimplyGo in end January, with 44% using bank cards and mobile wallets and 25% using SimplyGo stored value cards.
The background
LTA observed in 2016 that more commuters were using contactless bank cards and mobile wallets for retail payments. Other major public transport systems were also starting to offer commuters the option of using these payment modes.
As the existing CBT system does not support bank cards and mobile wallets, in March 2017, LTA started a pilot to allow payments by bank card via a new ABT system. This was subsequently scaled up into the SimplyGo system in 2019.
Many commuters chose to use SimplyGo because of its benefits. For example, it allows commuters to use bank cards and mobile wallets for public transport, instead of carrying an additional card. If a registered user loses his SimplyGo stored value card, he can block it and protect the value in his account. Users can also top-up their SimplyGo cards for their family members via the app, without having the card physically present.
The limitations of SimplyGo is that because it operates on the ABT system, it cannot display the fare deduction and card balance information at the fare gates and bus card readers, without causing delays to the flow of commuters.
Commuters are able to view their transactions and balance by using the SimplyGo app or the ticketing machines at train stations and bus interchanges.
LTA's considerations
Minister Chee also explained LTA’s considerations when they announced on 9 January the decision to sunset the CBT system.
LTA currently operates three systems: the SimplyGo ABT system and two separate CBT systems developed at different times to support the adult cards and concession cards respectively.
The two CBT systems are separate, and the cards on each system are not compatible.
As the CBT system for adult commuters would reach end-of-life in 2024, LTA had to make a decision whether to extend the system, or to stop operating it after it reaches end- of-life.
To extend the system until at least 2030, LTA would need to spend an estimated $40 million to buy new hardware and equipment, and then operate and maintain the system over the next few years. This is a cost that LTA wanted to avoid incurring by sunsetting the CBT system for adult commuters.
Between 2020 to 2023, LTA consulted different groups of commuters to gauge their readiness to transit to an ABT system.
One of the feedback received was that seniors were not very familiar with using the SimplyGo app and preferred to continue viewing fare deductions and card balances at fare gates and bus card readers.
Thus, LTA decided to retain the concession card CBT system for these commuters.
With two-thirds of adults coming on board the SimplyGo ABT system, LTA assessed that it could proceed to announce its plan to sunset the CBT system for adult commuters by 1 June 2024.
LTA had had underestimated the strong preference of some commuters who wanted to continue seeing their fare deductions and card balances immediately at fare gates and bus card readers.
With the decision to reverse the earlier announcement to sunset the CBT system, the estimated cost of $40 million to maintain the adult CBT system till at least 2030 is now unavoidable.
Mr Chee said that he had tasked LTA to improve the features and user experience of SimplyGo, and to find ways to overcome the technical challenge so that it could display fare deductions and card balances at the fare gates and bus card readers without slowing down the flow of commuters.
LTA will work with other government agencies and industry experts to explore possible solutions.
