Digital wallets to become most popular payment method in Singapore by 2024

E-wallets are expected to overtake credit cards as the most popular online payment method in Singapore by 2024, accounting for almost a third of the market ( 27%), financial technology leader FIS said in its Global Payments Report 2021.

In 2020, the most popular online payment methods in Singapore were credit cards ( 45%) , digital wallets ( 20%) and bank transfers (12%).

Meanwhile, the fastest growing online payment method is buy now, pay later ( BNPL), which currently holds a 3% share but will grow to 13% by 2024.

For in-store purchases, credit cards remain the preferred payment method among Singaporeans, accounting for 38% of total transactions .

Cash usage, which accounted for 26 per cent of transactions, is expected to decline rapidly over the next four years , while digital wallets such as Singtel Dash , DBS PayLah and Apple Pay are expected to grow to 20 per cent of the POS market by 2024.

FIS said the market is changing the format of traditional e-commerce and driving exponential market growth.

According to the report, Singapore's e-commerce market reached US$7 billion in 2020 due to the impact of the COVID-19 pandemic , and is expected to grow by around 40% in the next four years, driven by mobile shopping.

Phil Pomford , general manager of merchant solutions, Asia Pacific, FIS Worldpay , said: “Merchants that are positioned with digital payment capabilities will be well-positioned to capture the next wave of growth as e-commerce expands in Singapore.”

It is understood that with the surge in adoption, 80% of Singapore 's residents and businesses are now using the PayNow network.

The total value of transactions via PayNow also doubled to US$5 billion in December last year from a year ago.

Monetary Authority of Singapore executive officer said it remains important for cash to be widely accepted in Singapore and for the country to continue to have ATMs and cash withdrawal points so that internet-savvy Singaporeans are not left behind.

Cross-border e-commerce market

Financial Payment

Southeast Asia