With the booming development of global e-commerce, consumer demand for payment methods is constantly changing across countries. A recent report published by FIS indicates that e-wallets are gradually replacing credit cards as the primary online payment method in Singapore. This result shows the growing global consumer demand for alternative payment methods and reflects Singaporean consumers’ emphasis on convenience and simplicity.
According to the 2023 “Global Payments Report” released by the Singaporean fintech company FIS on April 12, 2023, e-wallets have become the primary online payment method in Singapore and are expected to replace credit cards as the mainstream payment method in the future.
The report notes that from 2021 to 2022, the usage rate of e-wallets across various shopping channels grew from 29% to 32%, and the rate of using e-wallets at the point of sale reached 18%, higher than 13% in 2021, making it the fastest-growing. Credit cards are still the primary payment method for Singaporean consumers, but the report predicts that by 2026, e-wallet payments will account for 40% of online payments in Singapore, higher than credit cards’ 36%. At the same time, e-wallet transaction volume at the point of sale will also grow significantly by 101% from 2022 to 2026, becoming the primary payment method for Singaporean consumers.
The report surveyed cash and future payment trends in 40 markets worldwide and found that global consumers’ payment methods are beginning to shift to alternative payment methods, such as buy now pay later (BNPL) and e-wallets. BNPL began gaining popularity during the COVID-19 pandemic, and e-commerce BNPL transaction volume is expected to more than double to US$1 billion (about S$1.33 billion) by 2026.
Szu Shu-yi, Vice President of Worldpay under FIS, said that e-wallets are popular because they are very convenient and simple to use. Currently, most people still use credit cards because credit cards offer many discounts and rebates. If e-wallets could also offer similar reward measures, usage would climb. In addition, strengthening connectivity between e-wallets can provide a range of commercial and financial service solutions and can also make e-wallets a more powerful payment tool.
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