Chart of the Day: Pandemic spurs digital payment take-up in Singapore

Electronic payments are expected to take up 61% of transactions by 2023.

The coronavirus pandemic is likely to help drive digital payments’ adoption in Singapore, with non-cash payments expected to take a 54% market share in 2020, a report by GlobalData revealed.

Coupled with the support of the government, cashless payments are expected to grow exponentially in the country, eventually taking more than half of market share at 61% in 2023.

“The recent Covid-19 outbreak will further drive the shift from cash-based payments to digital payment tools, particularly non-contact tools such as contactless cards and mobile wallets,” said Nikhil Reddy, banking and payments analyst at GlobalData.

Credit transfers doubled from $61m in 2015 to $133m in 2019, whilst card payments ballooned from $611m to $1.2b in the same period.

“The digitalization of transit payments, expanding payment infrastructure, rising electronic payment acceptance among SMEs and growing consumer preference for digital payments will further push Singapore’s move towards a ‘less-cash’ economy,” said Reddy.

The launch of a common QR code standard in September 2018 also helped this type of payment transfer gain traction. According to the Monetary Authority of Singapore (MAS), over 32,000 QR codes have been deployed across various merchant categories such as retail stores, hawker centers and supermarkets, as of September 2019.

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!