In Singapore’s high-tech financial district, where billions flow digitally in milliseconds, there’s a busy mall where cash remains king.
Six days a week, hundreds queue at about 30 money changer stalls in The Arcade, near Raffles Place. They exchange around 150 currencies—from Singapore dollars to Icelandic króna—in minutes.
“Cash will always be around,” said Abdul Haleem, 65, who runs a stall near the entrance. Nearby are the offices of banking giants like JPMorgan Chase and Bank of China.
Though many money changers closed during the COVID-19 pandemic, nearly 250 stalls still operate across Singapore. New ones keep opening despite the rise of digital payment apps like YouTrip and Revolut.
Singapore’s role as a major shipping hub helps cash survive. Hundreds of ships dock daily, and sailors exchange currencies at Raffles Place before traveling onward.
“It’s where they come off the boat and change money,” said Haleem, whose family has run a stall there since 1980.
Office workers also visit for better rates than banks offer. Despite the rise of digital payments, physical cash remains in demand.
Mohamed Rafik, 55, a partner at Arcade Money Changers, is confident the business will last. “New players wouldn’t enter if they couldn’t make money,” he said. He warned digital wallets may raise fees later.
Tourism also drives demand. Travelers visiting nearby countries still rely on cash for small purchases and to avoid card fees.
Christina Ng, a teacher, values cash for security and teaches her children to handle physical money rather than only digital payments.
Trends have shifted from US dollars to Japanese yen, Korean won, and Taiwanese dollars as more tourists visit Japan.
At The Arcade, customers compare rates displayed on screens. Money changers survive by keeping costs low, often beating bank rates, despite thin margins.
Haleem’s stall recently offered US dollars at S$1.2900 versus S$1.2972 on DBS bank’s app and S$1.2877 on YouTrip.
Despite handling large cash volumes—sometimes half a million Singapore dollars daily—security is low-key, relying on city-wide cameras and mutual vigilance.
Regulators monitor the industry for money laundering risks. Since a 2016 scandal, stricter rules require ID checks for transactions over S$5,000 and detailed record-keeping.
Haleem admits business is slower than pre-COVID and margins tighter but believes some cash use will remain despite digital growth.
Upstairs, Thamim A.K., a 40-year veteran, is optimistic. “The banknotes business is still here. It’s actually growing,” he said.
