Global trends in digital commerce accelerated as a result of the pandemic, and one of the main beneficiaries are digital wallets, which have gained in popularity at the expense of credit cards.
E-wallets are poised to overtake credit cards as the most popular online payment method in Singapore by 2024, accounting for almost a third (27 percent) of the market, financial technology leader FIS said in its «Global Payments Report 2021.»
The most popular online payment methods in the city-state in 2020 were credit cards (45 percent), digital wallets (20 percent) and bank transfers (12 percent). At the same time, the fastest growing online payment method is Buy Now, Pay Later (BNPL), which currently has a 3 percent share, but is set to grow to 13 percent by 2024.
In-Store Trends
For in-store purchases, credit cards are still Singaporeans' preferred payment method, accounting for 38 percent of transactions in 2020, and are projected to retain this market share through to 2024, the report said.
Cash use, accounting for 26 percent of transactions, is expected to decline rapidly in the next four years, while digital wallets such as Singtel Dash, DBS PayLah, and Apple Pay expected to grow to account for 20 percent of the POS market by 2024.
Marketplaces Important
Marketplaces are changing the shape of traditional e-commerce and driving exponential growth in the market, FIS said.
According to the report, Singapore's e-commerce market reached $7 billion in 2020, accelerated by the COVID-19 pandemic, and is expected to grow around 40 percent over the next four years, driven by mobile shopping.
«Merchants who position themselves with digital payments capabilities will be well-positioned to capture the next wave of growth as eCommerce expands in Singapore,» said Phil Pomford, general manager APAC, Worldpay Merchant Solutions at FIS.
