SINGAPORE — Since EZ-Link’s Trust programme began in 2015, the e-payment company said it has helped to refund 15 pre-paid spa packages, worth several thousand dollars, from four spas that abruptly closed down.

Now, EZ-Link wants to widen and streamline the programme through two new mobile apps launched on Tuesday (March 26) — one for customers, and the other for merchants.

EZ-Link CEO Nicholas Lee said that the company is moving away from card-based systems that require merchants to install “clunky hardware” such as the terminals needed to process Trust cards previously. Customers also won’t need to carry any additional membership cards.

With the new app, customers will be able to get refunds in less than a week for “clear-cut” cases, such as when a spa closes down abruptly.

This is significantly faster than the three weeks needed for the card-based system, as EZ-Link had to wait for customers to provide their bank or credit card details.

“More complicated” cases, such as when a company is still operating but is in liquidation, may take longer, Mr Lee added.

Customers will also be able to track their packages and transactions, contact merchants, and edit their contact details on the app.

Meanwhile, the app for merchants will enable them to update their catalogues, design new promotions and display them to customers on tablets. The app will also be supported by a web-based administration portal that allows merchants to approve refunds, view and search for transactions, and assess performance reports.

EZ-Link is now partnered with 48 spa and wellness operators and hopes to double the number of merchants on the programme by the end of this year, a spokesperson said.

Mr Lee added that the company is focused on the spa and wellness sector for now, but is also looking at industries which see many complaints made to the Consumers Association of Singapore (CASE) each year — such as hair and cosmetics salons and renovation firms.

In 2018, the beauty industry racked up the most complaints, nearly half of them related to the loss of pre-payments due to abrupt business closures and aggressive sales tactics.

“Our goal is to make protection for pre-paid packages a way of life for consumers, not just in the spa and wellness sector, but in other industries too,” said Mr Lee.

GOOD FOR SPAS 'IN LONG TERM'

Ms Amy Quek, 54, chief executive officer of Global Beauty International, said that two of the group’s seven companies — Bella Marie France and Swenson — are part of the Trust programme.

“There were some cash flow problems at the very beginning when we implemented this, but we have a strong foundation as we have been in the business for around 30 years.”

“In the long term, it's good for the consumers because it enables continued consumer confidence and trust in a particular brand,” added Ms Quek.

Ms Denise Lim, 45, assistant general manager of The Ultimate Group of Companies — which has four outlets now part of the Trust programme — said that the commission rates charged by EZ-Link were “like peanuts” compared to the premiums charged by insurance companies, allowing her company to enjoy cost-savings while offering pre-payment protection to customers.

HOW THE TRUST PROGRAMME WORKS

EZ-Link Trust promises customers peace of mind by refunding unutilised value in their pre-paid packages should any participating merchant go out of business. Here’s how it works:

• A customer buys a package from a participating spa

• EZ-Link safeguards the full package amount

• When the customer redeems a spa session, for instance, EZ-Link validates the transaction and releases only the redeemed amount to the spa

• The spa receives money for the session redeemed the next day