CEPAS Case Reflection

To: Richard Peterson, CEO

From: Anna Szperlak

Date: July 27, 2014

Subject: Reflection on the meeting with consultants

   In response to the presentation with YSW Consulting firm, we received very informative details on how CEPAS implementation can improve the overall economy and what would the key takeaways be. As we know, prior to 2009 there were two major card issuers dominating: The Land Transport Authority (LTA) and the Network for Electronic Transfers Singapore (NETS). As the NETS held exclusive rights to the Electronic Road Pricing  (ERP) system and also dominated Singapore’s retail and private car park payment markets, the LTA monopolized Singapore’s public transit market which includes Mass Rapid Transit (MRT) ticketing, bus and taxi fare collections. Both of those platforms shared a common interest of getting an access to a card that would be more cost efficient and comparable with the existing system. The idea of merging multiple payment applications onto a single smart card will increase the overall sales since customers spent more when using credit cards.

However, you might wonder how would that affect the shareholders? As the consulting team have mentioned, the Singapore government will save an approximately $24.5MM just by reducing the labor cost associated with all of the cash transactions that are being performed daily. The retailers will increase sales since the new CEPAS implementation will expand the customer base due to its convenience. Also, banks' manual cash transactions will be replaced with an electronically ones instead, what would minimize the labor cost. Implementing the CEPAS will provide convenience to the customer, transaction speed and more accurate data which will help them better monitor their spending.

If you have any questions or would like to discuss further, please feel free to reach out to me.

Best Regards,

Anna Szperlak