, Singapore
601 views

Buy now, pay later to make up 8% of e-commerce transactions in 2025: FIS

Digital payment methods chip away at card use and bank transfers.
 
Buy now, pay later (BNPL) market is projected to grow at a compound annual growth rate (CAGR) of 40% through 2025 to become the fastest growing online payment method in Singapore, reports FIS.

BNPL made up only 4% of the e-commerce transaction value in 2021, but is expected to climb 4 percentage points to make up 8% of total value by 2025.

Online payments continued to thrive in Singapore in 2021 and is expected to grow stronger until mid-decade as the local e-commerce market rapidly grew, according to FIS’ latest Global Payment Report. The local e-commerce market is expected to rise at 16% CAGR through 2025 and hit US$10.7b.

Whilst credit and charge cards remained the leading online payment in 2021–making up 42% of the total e-commerce transaction values–digital wallets are on track to chip away at its dominance and make up 31% of transaction values by 2025.

In 2021, digital wallets made up 29% of all e-commerce payments.

Outside of e-commerce sales, point of sales (POS) transaction value in Singapore also rebounded strongly in 2021, growing 23%. This is the largest expansion amongst all APAC markets, FIS said.
 
Credit and charge cards remain the leading in-store payment method and are predicted to maintain their dominance in POS transactions through 2025.

But mobile wallets are growing increasingly popular in-store and is projected to narrow the gap with card-use, to make up 23% of POS value by 2025 compared to cards’ 37% share by mid-decade.

Cash use will continue to decline to only 13% of total value in 2025, according to FIS.

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!

Top News

SIT, DNV ink 3-year partnership on maritime decarbonization and digitalization
The parties will cooperate in three key areas.   The Singapore Institute of Technology (SIT) has joined hands with a maritime advisor, DNV, to advance net-zero ambitions in the Lion City’s maritime sector.

Exclusives

Where to invest your millions in real estate
Amongst locations, realtors suggest the Core Central Region.   Individuals seeking shelter in the real estate market amidst the rising inflation must consider three things before deciding where to invest their millions in.   George Tan, managing director of Savills Digital Residential Marketing, said one of these factors is location.    Tan said buyers should consider areas which are highly demanded and well located—easy access to prestigious or international schools, MRT, malls and food and beverage (F&B) establishments. All these will contribute to good rental demand.   PropNex realtor, Andy Lim, echoed this, adding that buyers should particularly invest in properties within one kilometre of the prestigious schools.