SINGAPORE: Singapore is on the cusp of a major shift in how its residents pay for goods and services. According to the 2024 Global Payments Report from Worldpay, digital wallets are poised to become the dominant payment method within the next three years.
By 2027, digital wallets are expected to account for 50% of online transactions, a significant increase from their current usage.
In 2023, digital wallet spending in Singapore was recorded at $41 billion. Worldpay’s projections indicate that this figure will more than double to $89 billion by 2027. This surge is part of a broader trend in which digital wallets are becoming increasingly popular, overtaking traditional credit cards as the preferred method for online purchases.
Currently, credit cards hold the largest share of transaction values both in e-commerce and at points of sale (POS). In 2023, credit cards were used for 42% of e-commerce transactions and 37% of POS transactions. However, this dominance is expected to wane, with credit card spending projected to drop to 32% of online transactions by 2027.
Worldpay attributes the rise of digital wallets to several factors, including the growing interoperability of regional payment systems and the success of the Singapore Quick Response Code (SGQR). The SGQR is the world’s first unified payment QR code, facilitating seamless transactions across different platforms and contributing to the strong growth forecast for digital wallets.
While digital wallets are on the rise, the Buy Now, Pay Later (BNPL) payment method is also expected to see steady growth.
BNPL is expected to maintain a 2% share of e-commerce transaction value, growing at a compound annual growth rate (CAGR) of 8% from 2023 to 2027. BNPL has gained popularity, particularly among younger, tech-savvy consumers. According to the report, 77% of Gen Z and 47% of Millennials in Singapore have used BNPL services, compared to 28% of Gen X and only 13% of Baby Boomers.
This data underscores a significant shift in payment preferences among Singaporeans, driven by technological advancements and changing consumer behaviors. As digital wallets become more ubiquitous and integrated into the financial ecosystem, they are set to reshape the landscape of online and in-person transactions in Singapore.
TISG/
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