Singapore Payments Market - Growth, Trends, COVID -19 Impact, Forecasts (2022 - 2027)

Market Overview

The Singapore Payments Market is expected to grow at a CAGR of 7.5% over the forecast period 2022 to 2027. The ongoing growth of real-time payments and the government's efforts to encourage digitalization are expected to drive market growth. With the government now allowing non-bank financial institutions (NFIs) to access banking retail payment infrastructure, instant payments in Singapore are set to increase even more. NFIs that have been granted a major payment institution licensed under the Payment Services Act are now permitted to link directly to FAST and PayNow.

• One of the primary goals of the Singapore government's Smart Nation vision is to build an e-payments society, which is one of the key goals. The payments sector in Singapore is now modern and open to new players. This industry is available to non-bank financial institutions (NFIs), promoting competition and interoperability among e-wallets. For instance, Grab, a ride-hailing firm, introduced GrabPay, and Singtel, a telecommunications company, introduced DashPay.
• Mobile phones (notably smartphones) have become an integral aspect of an individual's life as the global economy has grown rapidly. Furthermore, for most individuals worldwide, the internet has become an indispensable element of their daily lives. As a result, the number of cellphones and internet users has surged worldwide, resulting in a major expansion in the payments sector.
• According to the Rakuten Insight survey, nearly 90% of respondents said they had used e-payment methods to complete a transaction. DBS PayLah!, PayPal, and GrabPay are the top three e-payment services in Singapore right now.
• Moreover, In Singapore, the number of e-wallet users has reached about 4 million, compared to a population of roughly 5.7 million, indicating a 70% adoption rate of e-wallet users, as stated by The Asian Banker. GrabPay, one of Singapore's most popular e-payment platforms, has surpassed 3 million customers on its digital financial services, with 3.5 million predicted by 2023.
• The Covid-19 outbreak has resulted in a substantial shift in payment practice, including reducing cash payments, moving from in-store to online payment options, and adopting rapid settlements. These changes have opened up new possibilities for payment providers in Singapore.
• Moreover, From a consumer perspective, it is projected to enhance digital payment acceptance in Singapore. COVID-19 was one of the main factors that accelerated this. Aside from digital adoption, customers' enthusiasm for being cashless is bolstered by the enhanced convenience and advantages.

Scope of the Report

The payments market is segmented by two modes of payment - POS and e-commerce. E-commerce payments include online purchases of goods and services such as purchases made on e-commerce websites and online booking of travel and accommodation. However, it does not include online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for POS, all transactions that occur at the physical point of sale are included in the market scope. It includes traditional in-store transactions and all face-to-face transactions regardless of where they take place. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).

Report scope can be customized per your requirements. Click here.

Key Market Trends

The payments market in Singapore is driven by boom in the e-commerce industry

• J&T Singapore has been assisting e-commerce merchants in taking advantage of the booming digital economy since 2020. Shopee, Lazada, Amazon, Shopify, Shopcada, and WooCommerce are just a few of the major marketplaces and e-commerce platforms with which they have linked. It established shipping corridors all across the planet. In Changi and Penjuru, they established warehouses and fulfillment centers. They also started an internal service quality project in October 2021 to ensure that we'll give outstanding service to all its clients.
• The increase in internet penetration is one main factor driving the e-commerce market. In January 2021, Singapore had 5.29 million internet users, as stated by CNBC. Between 2020 and 2021, the number of internet users in Singapore increased by 146 thousand (+2.8%). In January 2021, Singapore had a 90.0% internet penetration rate.
• Furthermore, the country is focusing on various collaborations with international players to develop 6G. For instance, in July 2021, The University of Oulu's 6G Flagship, the world's first and foremost 6G research, development, and innovation initiative, and Singapore agreed to collaborate on 6G technology. The alliance will concentrate on 6G technology research and development. 6G will enable greater speed, lower latency, and greater capacity for data networks.
• Because of the COVID-19 epidemic, many consumers continued to work from home and preferred to shop online rather than in stores. This paved the way for significant growth in e-commerce sales and businesses worldwide.
• Singapore's payments business is seeing a surge of innovative digital payment alternatives. It has emerged as the newest number one trend for online payments in Singapore, owing to the increasing use of smartphones and the advent of digital wallet payment options such as PayPal and Buy Now Pay Later services.

To understand key trends, Download Sample Report