Singapore’s e-commerce market is expected to grow at 16% CAGR through 2025 to reach US$10.7 billion, according to the 2022 Global Payments Report by Worldpay from FIS, a financial technology solutions provider.
In 2021, credit/charge cards were the leading online payment method, accounting for 42% of e-commerce transaction value.
However, consumers are showing an increasing preference for buy now, pay later (BNPL) solutions. BNPL is projected to double its share of e-commerce transaction value from 4% in 2021 to 8% in 2025, making it the fastest growing online payment method.
Singaporean consumers are also keen to use digital wallets and bank transfers, such that those online payment methods are on track to account for 31% and 11% of e-commerce transaction value respectively in the next three years.
The report also looks at point-of-sale (POS) payment trends in Singapore. While credit/charge cards were the leading in-store payment method last year and will continue their dominance, mobile wallets are becoming popular too. Mobile wallets are predicted to contribute to 23% of POS transaction value in 2025, up from 13% in 2021.
“The overwhelming popularity of super apps, including Singapore’s Grab, is helping to drive the use of digital wallets amongst other alternative payment methods. 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,” says Phil Pomford, General Manager for Global eCommerce, APAC, Worldpay from FIS.
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