– Singapore digital payment market
The digital payment market includes mobile payments (POS) via smartphone applications and cross-border remittances via the Internet, as well as payments for products and services made via the Internet. However, transactions between business operators (B2B payment) and point-of-sale payment transactions using a mobile card reader (terminal) are excluded.
Singapore Digital Payment Market Status and Trend
According to the global statistics site Statista, the total transaction value of Singapore's digital payments sector is expected to reach 2022 billion US dollars in 180, with an annual growth rate (CAGR 4,800-2022) of 2026%, 21.53 billion by 2026. It is expected to reach the US dollar. In the digital payment market, the sector that occupies the largest share in terms of transaction value is digital commerce, and the total transaction amount expected in 393 is US$7,400 million. It was followed by mobile POS payments (Grabpay, Google Pay, Apple Pay, etc.) with US$2022 billion and digital remittance (Wise, SingX, etc.) with US$113 million.
<Transactions by digital payment sector in Singapore>
(Unit: million US dollars)
[Source: Statista]
According to Statista's statistics, the average transaction amount of digital commerce and mobile POS payments in Singapore has been steadily increasing since 2017. In particular, in the case of mobile POS payments, the average transaction value per user in 2020 doubled to US$2,159.20 (compared to US$2018 in 1,037.50) and is expected to reach US$2022 in 5,282.30.
<Average transaction amount per user for digital payment in Singapore>
(Unit: US Dollars)
[Source: Statista]
As more and more users choose contactless payment instead of cash since the start of COVID-2020 in early 19, the Singaporean government and businesses have also launched a range of new contactless digital payment platforms to encourage transactions through digital payment methods. . According to Statista's April 22 announcement, there are currently 4 million digital commerce users and 350 million mobile POS payment users in Singapore. In addition, the number of mobile payment users is expected to reach 110 million for digital commerce and 2026 million for mobile POS payment by 430.
<Number of digital payment users by sector in Singapore>
(Unit: million users)
[Source: Statista]
On the other hand, with the increase in Singapore's Internet penetration rate and the number of digitalization businesses in Singapore, the penetration rate of digital commerce in Singapore is expected to reach 2022% in 59 and is expected to reach 2026% by 70.2. On the other hand, according to data published by Statista in 2020, the mobile phone penetration rate in Singapore reached 148.2%, showing that there are about 1 mobile phone subscribers per resident in Singapore.
<Digital payment penetration rate by sector in Singapore>
(unit: %)
[Source: Statista]
Singapore’s digital payment trends and potential
In Singapore, e-payment has been relatively active in Singapore, from the introduction of GIRO in 1984 to FAST (Fast and Secure Transfers) and electronic wallets for mobile phones today. Electronic payments are a convenient alternative to using cash and checks as payment modes because they provide consumers with a quick and efficient payment method and help businesses increase productivity.
Monetary Authority of Singapore (MAS) Director and Minister of Health Ong Ye Kung said in his Budget Debate on February 2021, 2 that the COVID-26 pandemic and rise in e-commerce have accelerated the adoption of online payments among Singaporeans. commented. For example, 'Paynow', a platform launched by the Monetary Authority of Singapore (MAS) in 19, provides real-time transfers between customers of participating banks by entering their mobile or personal identification number, with a total of 2017 million 'Paynow' registrations. Recorded. In particular, in 490, when the Covid19 pandemic began, the number of users increased by 2020% to 160 million. In addition, the transaction volume of 'Paynow' in December 33 also doubled compared to 2020 to 50 billion Singapore dollars, and growth is expected to continue as 'GrabPay', 'Liquid Pay and Singtel Dash' launch 'Paynow' service.
Digital payment users in Singapore can choose from a range of e-wallet solutions offered by both financial and non-financial institutions. In February 2021, the Singapore Banking Association announced that Grab will be one of the first non-bank financial institutions to offer 'Paynow', and 'Grabpay', a digital wallet provided by Grab, is the most popular electronic wallet in Singapore. It has consistently been number one. 'Grabpay' was first launched in 2 as an electronic wallet that can be recharged or linked with a credit or debit card, and now supports bank transfer through 'Paynow', and provides physical 'purchases' from non-partner merchants online and offline. Grabpay Mastercard' has been expanded. In line with the trend of the digital payment era, Grab also launched a 'PayLater' service in 1 that allows consumers to pay for purchases in the next month or in installments without interest for more than four months.
<Digital payment method Paynow and Grabpay logo>
[Source: Association of Banks in Singapore (ABS) and Grab official website]
One of the main attractive features of 'GrabPay' is GrabRewards. The program offers points per dollar for purchases made with the 'GrabPay' card and can be used to offset GrabRide, GrabFood orders for future purchases with 'GrabPay' at e-commerce merchants and physical retailers. Besides, 'GrabPay' serves as a one-stop financial solution for users as it can also be used for financial tracking. 'GrabPay' provides immediate purchase history, such as purchase time, store name, and the number of GrabRewards points accumulated in the app. The ease of use of 'GrabPay' allows users to manage their finances within one app.
Concerns about digital payment security
Despite the variety of “cashless payment options” available to consumers, some people are still concerned about the security of digital payments. Many elderly people in Singapore have difficulty making purchases through electronic payments. To protect Singaporeans from such risks, the government has intervened with measures to help people make the digital leap with greater peace of mind.
In early 2020, the Payment Services Act was introduced to encourage fintech innovation and growth while regulating electronic payment services. According to this regulation, e-wallet providers such as 'Grabpay' must comply with the balance and transaction limits set by the MAS. For example, an e-wallet provider cannot hold more than $5,000 in a user's e-wallet at any given time. Daily, monthly and annual trading limits are also regulated. Minister Ong Ye Kung said this cap would help protect customers by limiting the losses that could be incurred on e-money accounts and would help continue to protect measures against e-wallets that are simpler and cheaper than deposit insurance that banks must purchase. mentioned that this
Singapore through the eyes of the world
Globally, China has the highest digital payment transaction value at US$ 2022 trillion in 3, followed by the US at US$ 2,251 trillion and the UK at US$ 2,900 billion. did. Meanwhile, in the case of Singapore, as of March 1, the total transaction amount recorded US$ 8,011 billion. However, considering that Singapore's population is 300 million as of 4,360 (9,900% of Korea's), it is a high figure compared to the population. For reference, other ASEAN countries such as Malaysia (population 2022 million) and Indonesia (3 million people), which are geographically adjacent to Singapore, recorded US$ 180 billion and US$ 4,800 billion in 2021.
<Top 5 countries based on global digital payment transaction value>
[Source: Statista]
Implications and Prospects
Ong Ye Kung, Director of the Monetary Authority of Singapore (MAS) and Minister of Health, said at the Budget Debate held on February 2021, 2, “We are promoting electronic payments because they are efficient, convenient and eco-friendly. However, we are not aiming to become a cashless society, and cash will continue to be a familiar and convenient way of transacting.” Since COVID-26, Singapore's digital payment users are expected to rise through the Contactless Payment campaign conducted by the Singapore government. Programs such as Hawkers Go Digital supported by Infocomm Media Development Authority (IMDA) and Heartlands Go Digital supported by Enterprise Singapore provide small businesses with contactless electronic payment platforms such as Fave, Grab, NETS and Alipay to enable more We support users to use it. In particular, for young users who only carry smartphones, the fact that they can pay with an electronic wallet without a cash wallet is the most attractive. Mr. A, an official in the digital payment industry, said, “Digital payment has been on the rise for several years, but it accelerated amid the COVID-19 pandemic.” In addition, with the growth of Singapore's internet penetration rate, the number of digital payment users in Singapore is expected to rise in the future. Therefore, many digital payment systems are expected to be set up by Singaporean companies to attract more consumers.
Source: Singapore Statistics Korea (Singstat), Monetary Authority of Singapore (MAS), Statista, StraitsTimes, CNA