Alternative payment methods set to form half of online payments by 2025 as e-commerce growth accelerates in Singapore, new FIS Study finds
Singapore, March 14, 2022 – An early adopter of new payment technologies, Singapore is at the forefront of the transition towards alternative payment methods. Digital wallet growth earned the spotlight in 2021, with its share of e-commerce transaction value rising to 29 percent, according to a new report released today from financial technology leader FIS® (NYSE: FIS).
The 2022 Global Payments Report by Worldpay from FIS, now in its seventh year, examines current and future payments trends across 41 countries. It found that the local e-commerce market is expected to post impressive growth of 16 percent CAGR through 2025. At the same time, BNPL is projected to more than double its share of e-commerce transaction value, from 4 percent in 2021 to 8 percent in 2025.
Singapore e-commerce Payment Trends
According to the Global Payments Report:
- BNPL is the fastest growing online payment method, projected to grow at 40 percent CAGR through 2025 and double its share of e-commerce transaction value, from 4 percent in 2021 to 8 percent in 2025.
- Credit/charge cards were the leading online payment method in 2021 accounting for 42 percent of e-commerce transaction value, followed by digital wallets (29 percent) and bank transfers (12 percent).
- Digital wallet usage and bank transfers will continue an upward trajectory and they are on track to become 31 percent and 11 percent of e-commerce transaction value respectively by 2025.
- The local e-commerce market continues to see rapid growth and is projected to increase at 16 percent CAGR through 2025 when it will reach $10.7 billion (USD).
Singapore point-of-sale (POS) Payment Trends
According to the Global Payments Report:
- POS transaction value rebounded strongly in 2021 from the COVID-induced recession of 2020, with Singapore seeing the largest relative expansion in APAC at 23 percent. Singapore’s POS market is projected to grow at 5 percent CAGR through 2025.
- Credit/charge cards remain the leading in-store payment method and is predicted to maintain its dominance through 2025 when it will reach 37 percent of POS transaction value.
- Mobile wallets are increasingly popular in-store and projected to grow from 13 percent of POS transaction value in 2021 to 23 percent of POS value by 2025.
- Cash use is projected to continue its decline, from 22 percent in 2021 to 13 percent in 2025.
Phil Pomford, General Manager for Global eCommerce, APAC, Worldpay from FIS said: “APAC is at the forefront of the transition towards alternative payment methods. The overwhelming popularity of super apps, including Singapore’s Grab, is helping to drive the use of digital wallets amongst other APMs. There’s tremendous potential for payments innovation in the region, especially as e-commerce continues to demonstrate robust growth, and FIS is actively working with key players in the ecosystem to drive new opportunities.”
To download the complete report, including the methodology, please visit https://worldpay.globalpaymentsreport.com/
About The Global Payments Report
The Global Payments Report by Worldpay from FIS offers a snapshot of the payments landscape: globally, by region and in 41 select markets. The report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends including B2B and C2B real-time payments, and projects future scenarios for payment method shares as well as market size. The report’s data was collected using a survey of 46,000 consumers, secondary research, and extensive validation by payments experts from each region; the complete research methodology is published as an appendix to the report. Published continuously since 2015, the Global Payments Report by Worldpay from FIS is an industry benchmark used by merchants, financial institutions, press and researchers around the world. All projections are subject to changes in world events, market dynamics and other forces over the period concerned (to 2025).
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor’s 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).
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