Singapore merchants face US$1.2b losses from payment failures

Failed transactions and settlement delays expose hidden e-commerce losses for cross-border sellers.

Singapore merchants are losing an estimated US$1.2b annually to payment failures, as fragmented infrastructure, foreign exchange costs and settlement delays weaken e-commerce growth.

Nagesh Devata, Senior Vice President for Asia-Pacific at Payoneer, said merchants face hidden payment frictions that reduce the value they earn from online sales and make it harder to compete across borders.

“The biggest challenge when it comes to Singapore merchants and the payment frictions they face is there's a lot of hidden challenges,” Devata said.

The losses come from failed transactions, foreign exchange leakage and delayed settlements. For cross-border sellers, the problem often grows when businesses rely on several payment providers, banks and currency systems, creating more cost and complexity across the checkout process.

Devata said checkout failures act like revenue leakage because merchants can lose completed sales or absorb higher processing costs. Foreign exchange conversions and cross-border acceptance fees can also add up, whilst delayed settlements tie up working capital.

“If I'm a merchant and my money's stuck in transit for a few days, that's working capital that I need,” he said.

The issue is no longer only a finance or back-office problem. Payment friction can affect customer experience, conversion and the ability of merchants to scale internationally.

Devata said merchants should first assess who they are selling to and whether their payment options match customer expectations. A local Singapore buyer and an overseas customer may need different payment methods, currencies and settlement arrangements.

Payment choice is also tied to trust. Customers are less likely to complete transactions if checkout feels unreliable or inconvenient.

Devata said merchants should reduce disconnected systems and move towards more end-to-end payment infrastructure that supports money coming in and going out.

For Singapore merchants, the test is whether payment modernisation can reduce hidden leakage before failed transactions and settlement delays weaken growth.