Singapore Payments Market Size

Singapore Payments Market Analysis

The Singapore Payments Market size is estimated at USD 22.57 billion in 2024, and is expected to reach USD 36.07 billion by 2029, growing at a CAGR of 8.74% during the forecast period (2024-2029).

• 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 cell phones and internet users has surged worldwide, resulting in a major expansion in the payments sector.
• Further, the latest Back to Business study by Visa revealed that the majority (94%) of small and micro businesses (SMBs) in the country were seeking to adopt new payment methods in 2022, with 89% saying doing so would be fundamental to their growth. Amongst the methods that SMBs were considering using are e-wallet apps (59%), mobile contactless payments (58%), contactless cards (43%), Buy Now Pay Later solutions (35%), and digital currencies (33%).
• The COVID-19 outbreak resulted in a substantial shift in payment practices. It included a reduction in cash payments, a transition from in-store to online payment options, and the adoption of rapid settlements. These changes opened up new possibilities for payment providers in Singapore.
• As per the latest figures from the Singapore Police Force (SPF), the number of scam and cybercrime cases in the country hit an all-time high of 33,669 in 2022, with a 25.2% YoY increase. E-commerce was among the top five types of scams reported in Singapore. Scammers often use emails, text messages, or phone calls to deceive their targets. For instance, they pretend to be officials or trusted entities to convince victims to reveal their personal information, like bank accounts or credit card details. Scammers then use the data to carry out unauthorized transactions. Such trends may hinder market growth.