Digital Wallets Thrive in Singapore as eCommerce Surges, New FIS Report Finds
Singapore, March 3, 2021– The COVID-19 pandemic has ushered in a new era for eCommerce in Singapore, with digital wallets set to overtake credit cards to become the most popular online payment method in the country by 2024, according to a new report released today from financial technology leader FIS® (NYSE: FIS).
The 2021 Global Payments Report by Worldpay from FIS – which examines current and future payments trends across 41 countries – found that global trends in digital commerce accelerated as a result of the pandemic.
In-Store Payment Trends
The FIS report found:
- The point-of-sale (POS) market in Singapore is projected to increase by 22 percent over the next four years as the pandemic subsides to reach US$139 billion.
- Cash use in Singapore accounted for 26 percent of in-store payments in 2020, but is projected to decrease rapidly over the next four years.
- Credit cards continue to be the preferred in-store payment method, accounting for 38 percent of transactions in 2020, and are projected to retain this market share through to 2024.
- As Singapore consumers shift away from cash at the POS, digital wallets such as DBS PayLah, and Apple Pay are capturing a greater consumer loyalty and are expected to account for 20 percent of the POS market by 2024.
eCommerce Payment Trends
The eCommerce market in Singapore grew significantly in 2020 amidst the pandemic. The FIS report found:
- Driven by mCommerce, Singapore’s eCommerce market reached US$7 billion in 2020, and is projected to grow 40 percent over the next four years to reach US$10 billion.
- Credit cards (45 percent), digital wallets (20 percent) and bank transfers (12 percent) were the most popular online payment methods in 2020.
- Digital wallets are forecasted to overtake credit cards as the most popular online payment method by 2024, accounting for almost a third (27 percent) of the market.
- Buy Now, Pay Later is the fastest growing online payment method in Singapore. Currently only 3 percent of the market, it is on track to increase to 13 percent by 2024.
“Digital wallets have been on the rise for years but have accelerated amid the COVID-19 pandemic,” said Phil Pomford, General Manager APAC, Worldpay Merchant Solutions at FIS. “As digital wallets begin to outpace cards and cash transactions in Singapore, it’s important that merchants begin to explore the full capabilities of alternative payment methods, positioning them to be able to improve the checkout experience for consumers. Merchants who position themselves with digital payments capabilities will be well-positioned to capture the next wave of growth as eCommerce expands in Singapore.”
About The Global Payments Report
Figures quoted are taken from data published in The 2021 Global Payments Report by Worldpay from FIS unless otherwise stated or referenced. This data was collected using consumer surveys, B2B surveys and input from local research teams. 46,000 consumers were surveyed globally. For research methodology, please refer to page 135 of the report. Digital wallets are comprised of mobile wallets such as Apple Pay, Google Pay and Samsung Pay that work only within a specific mobile operating system as well as digital wallets such as Alipay, WeChat Pay, Paytm and Amazon Pay that are operating system-agnostic.
To download the complete copy of the report, including the methodology, please visit https://worldpay.globalpaymentsreport.com/
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 is a Fortune 500® company 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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