, Singapore
172 views
/Rupixen from Unsplash

S’pore’s payment cards lead with 40% market share in online transactions

An analyst said Singapore’s advanced tech infrastructure has boosted alternative payments.

Singapore's payment cards continue to dominate, commanding over 40% of the market share for online transactions in 2023.

As consumers increasingly shift towards digital channels, fueled by advanced tech infrastructure and the growing adoption of alternative payment methods, the country's e-commerce market is poised for robust growth, expected to reach $22.3b in 2024, according to GlobalData.

“Singapore’s e-commerce market is well developed supported by the country’s robust technology infrastructure, which ensures the availability of high-speed internet, rising smartphone penetration, high urbanisation, and growing number of tech-savvy customers,” Poornima Chinta, Senior Banking and Payments Analyst at GlobalData said in a media release.

GlobalData's E-Commerce Analytics forecasts a compound annual growth rate (CAGR) of 9.1% between 2024 and 2028, projecting the Singapore e-commerce market to reach $31.7b by 2028. 

The widespread internet and smartphone access, with 99% of households having internet access and 97% owning smartphones according to the Infocomm Media Development Authority (IMDA), lays down a solid foundation for e-commerce payments.

ALSO READ: SIA taps Mastercard for Southeast Asia loyalty card programs

Online shopping festivals like Black Friday, Cyber Monday, and the Great Singapore Sale further contribute to the e-commerce boom in Singapore.

Traditionally, payment cards have led e-commerce payments in Singapore, with credit and charge cards being highly favoured, accounting for a 31.9% share in 2023. 

The appeal of credit and charge cards lies in their value-added benefits, including interest-free instalment payment options, reward programs, cashback, and discounts.

However, alternative payment methods are gaining ground as the second most preferred option for e-commerce payments, collectively accounting for a 38.6% share in 2023. 

Bank transfers also play a significant role, accounting for 15.5% of total e-commerce transaction value in 2023.

Additionally, cash on delivery remains relevant, representing over 5% of e-commerce payments, underscoring the continued importance of cash transactions in the country's payment landscape.

“As Singapore’s e-commerce market continues to flourish, millennials and Generation Z are rapidly embracing the convenience and flexibility of alternative payment methods, which are set to challenge the dominance of payment cards in near future.” Chinta concluded.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

ION Orchard marks 15 years as a premier retail destination
The mall is proactive in conducting surveys to identify trends and optimise its tenant mix.
Retail
ION Orchard leads charge in sustainable takeaway practices
 Shoppers will enjoy discounts when they opt for a reusable mug or food container from Muuse.