Peer pressure is never a good reason why you should do anything. However, when everyone around you is doing a particular thing that you are not doing, there might be a good reason for at least start considering if you should be doing the same thing. Using credit cards is just one of them, especially for people in Singapore. According to the MasterCard’s Mobile Payments Readiness Index, Singapore ranked as the most “mobile payments ready” country in the world with a very high penetration of credit cards. But why are credit cards so popular in Singapore? Although some may think it’s about convenience, there are actually real economic and financial reasons why you should be using credit cards instead of cash. Embedded Processing Fees In Prices First off, while some cash only vendors don’t engage in such practice, most places and things embed the cost of processing payments within their prices. This cost is called the “interchange fee”. When you make a payment with your card, your bank has to send your money to the merchant’s bank, and all of the companies involved in making this payment go through collectively charge fees that amount to this interchange fee. While this […]
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