Over the last decade, digitization has changed shopping, dining, consumption and payment habits. However, the ongoing COVID-19 pandemic has tipped both consumers and brands over the transformational edge.
Since H1, cashless payments, from digital wallets to QR codes, have become a way of life for Singapore’s consumers and businesses, both forced to get accustomed to contactless transacting. And if almost half of businesses here believed their current payment systems were not ready to meet their future needs before this pandemic, more have likely been made aware of where the gaps lie.
In a study by market intelligence firm IDC, commissioned by global payments provider Adyen, 48% of Singapore businesses pointed to the need for payments solutions that better met current needs and could “scale with the business”. The urgency, both to pivot quickly to remain relevant and to be able to create new experiences, has grown.
Businesses must evolve, and for those that do, there is headroom for growth – they expect a 30% increase in revenue from adding a new payment method to their current offering. With Covid-19 having catalyzed such a monumental shift in consumer habits and preferences, there is every reason to believe those figures are now higher.
Beyond the bottom line, 53% expect a more seamless payments process to deliver greater customer satisfaction and loyalty, while 19% expect increased transaction frequency and volume.
Simply put: businesses need to place greater importance on letting customers pay how and when they choose to.
Beyond evolving consumer expectations, IDC identified other transformative forces shaping the payments needs of fast-growing Singapore businesses, from ecommerce to digital media.
More than half the businesses surveyed use single payments providers, for example, to obtain a single view of their customers across online and offline channels, and be able to offer more advanced shopper journeys and intuitive experiences. Making payments seamless also means easier, faster checkouts, and lower attrition en route to checking out purchases, say six in 10 companies.
Being able to market globally while accepting local payment methods also means getting rid of a patchwork approach to payment partners and methods, and tripping up on variations in both currencies and local buying behaviour.
Want to know more? Get your copy of the full report to access key statistics and IDC recommendations on how payments can be a competitive differentiator for some of the key industries in Singapore.
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