Currently the dominant e-commerce payment method among Singapore consumers, credit cards are expected to lose market share to other payment methods by 2023.
Credit cards dwarf other e-commerce payment methods in Singapore, accounting for 56 percent of all e-commerce sales in 2019, but digital wallets (18 percent) and bank transfers (10 percent) are eating into its market share, according to a report published on Tuesday by Worldpay with parent company FIS.
«While Singaporeans still prefer cash and card payments, our data shows that digital wallets and bank transfers are quickly gaining ground,» said Phil Pomford, APAC general manager for global e-commerce, Worldpay Merchant Solutions, FIS.
According to the report, Singapore's e-commerce market is expected to grow by 38 percent to reach $8.4 billion in 2023. Bank transfers, growing at a rate of 20 percent annually, are expected to account for 15 percent of all online purchases by 2023, Worldpay said.
Cash Dominates In-Store
Mobile-based online payment methods are growing by some 13 percent annually, while in-store digital wallet purchases are increasing at a rate of 25 percent per year. However, cash transactions remain the most often used form at point of sale, accounting for 37 percent of payments, followed by credit cards (34 percent) and debit cards (19 percent).
Credit cards are expected to eclipse cash in popularity by 2023, to account for 36 percent of all purchases, while digital wallets are the fastest-growing in-store payment method, expected to account for 14 percent of in-store purchases.
