This new smart card has been touted to be much more than its predecessor. Other than being able to pay for bus and train rides with it, cardholders would be able to use it to pay for items bought from 7-Eleven and MacDonald's, as well as SMRT cab fares.

Eventually, the card can also be used for Electronic Road Pricing (ERP) and Electronic Parking System (EPS) carpark payments, said Ez-Link.

Passengers can start purchasing the new cards from Monday. The current ez-link cards will be phased out eventually.

From January 2009, all passengers would be able to exchange their old ez-link cards for the new ones, for free.

Currently, there are about six million ez-link cards in circulation.

As the market opens up to let four card operators enter to fight for a slice of the transit market, this launch marks Ez-Link's first foray, beating the rest to it.

The Singapore transit market is worth an estimated $1.5 billion a year, and competition is expected to intensify as the rest gradually enters the fray.

Two other smart card operators are expected to enter the market next year, after their cards have been tested and found to adhere to Singapore's new e-purse standard known as CEPAS (Conttactless e-Purse Application).

The new Ez-link card will be available at $15, with a $5 fixed cost and $10 in stored value.

It can store up to a maximum of $500 in value, as compared to $100 for the existing card.