E-wallets are gaining significant traction in Singapore, with predictions indicating they will become the primary payment method by 2027.
According to the 2024 Global Payments Report by payment processing company Worldpay, e-wallets are expected to handle over 50% of online spending in Singapore by 2027.
In 2023, e-wallets were used for 70% of online spending in the Asia-Pacific region.
In Singapore, this trend is expected to continue, with digital wallet usage projected to account for more than half of all online transactions by 2027, compared to 32% for credit cards, which is a decline from 42% in 2023.
The report also forecasts that Singaporeans will more than double their spending via e-wallets, increasing from S$41 billion in 2023 to S$89 billion in 2027.
This growth is attributed to the increasing interoperability of regional payment systems and the success of the Singapore Quick Response Code (SGQR), the world’s first unified payment QR code.
In contrast, the use of credit cards in online transactions in Singapore is expected to decrease from 42% in 2023 to 32% in 2027.
The Buy Now, Pay Later (BNPL) payment method, although accounting for just 2% of transaction value, is projected to grow at a compound annual growth rate (CAGR) of 8% from 2023 to 2027.
Here’s a detailed breakdown of payment methods and market size projections, illustrating the significant shift towards e-wallets in both e-commerce and point-of-sale transactions.
“In card-rich countries like Singapore, the digital wallet is a fast-growing way to facilitate credit card transactions and provide consumers with a streamlined payment experience that thrives on efficiency.
Singapore’s government has established an extremely robust infrastructure that has accelerated the use of digital wallets, and we expect to continue seeing investment by both private and public organisations in this space to broaden capabilities and partnerships – ultimately benefiting both merchants and consumers.”
said Phil Pomford, General Manager, Global eCom, APAC, Worldpay.
Featured image credit: Edited from Freepik
