June school holidays 2025: Enter the world of e-payments
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Young people now have access to more digital payment options. How does this influence their ability to manage finances?
PHOTO: ST
Amily Goh
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SINGAPORE – Students, even those in primary school, can now pay for meals or books with just a tap of their ez-link cards, contactless payment watches or a debit card.
In Episode 4 of nine2twelve, kids can learn about digital payments and how to spend smartly and within their means.
Watch the video at str.sg/qX49
Activity
Imagine you are ordering a bowl of noodle soup from the canteen vendor and you are about to pay using your contactless payment card or watch. Arrange the sequence below to find out how e-payments get processed.
A. When you tap your card or watch on the payment machine, it sends a special signal using something called Near Field Communication (NFC). This lets the machine and your watch or card “talk” to each other wirelessly.
B. Your bank quickly checks to make sure you have enough money or credit, and that nothing seems suspicious. If everything looks good, your bank sends back a message that says the payment is approved.
C. Next, the payment machine sends your payment information to the shop’s bank. The shop’s bank then sends it to the card network, like Visa or Mastercard. The card network figures out which bank issued your card, and asks that bank if the transaction is able to go through.
D. Your device does not transmit your card number. Instead, it sends a special code to the payment machine. This code is used only once. If you are using a mobile phone or watch, it might also ask for your PIN, face ID or fingerprint to make sure it is really you, depending on the amount, region or device.
E. That message travels all the way from your bank, through the card network, back to the shop’s bank and finally to the payment machine. All of this happens in just a few seconds.
Answer: A, D, C, B, E
