Consumers in Singapore are increasingly choosing digital wallets as their payment method, over credit cards, according to Worldpay’s 2024 Global Payments Report.
Cards have remained the dominant payment method by transaction value in e-commerce (42%) and point-of-sale (POS) (37%) in 2023, but the “success” of the Singapore Quick Response Code (SGQR), the world’s first unified payment QR code, has led to a forecast for strong growth for digital wallets in Singapore.
Digital wallets are now projected to see transaction value increase to 44% by 2027, the equivalent of $14.8 billion, while cards are projected to account for 32% of online transaction value in that time frame.
The report’s consumer survey found that millennials were the largest cohort to use digital wallets (70%) compared to just 39% for baby boomers.
The Global Payments report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends, and projects future scenarios for payment method shares as well as market size.
It collected data using a survey of 48,000 consumers, secondary research, and extensive validation by payments experts from each region. The report has been published annually since 2015.
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The report found that on a regional level, Asia Pacific consumers led the world in digital wallet use online in 2023, accounting for 70% of regional e-commerce transaction value. Wallets accounted for over US$2 trillion in e-commerce transaction value in 2023 for APAC, representing more than 64% of global online digital wallet spending.
The report also found that the Buy Now, Pay Later (BNPL) payment method continues to be favored and is forecast to grow at a CAGR of 8% in Singapore from 2023 to 2027. In Singapore, 77% of GenZ survey respondents said they had used BNPL, which dropped to 47% for Millennials, 28% for Gen X and 13% for Baby Boomers.
“Payment behaviours have changed, and consumers around the globe are demanding faster and more digitised payment options. 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,” said Phil Pomford, General Manager, Global eCom, APAC, Worldpay. "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."
