Singapore has always been ahead of the curve when it comes to the modern digital age. They remain a standout nation in terms of cutting-edge technology and genius architecture. Singapore has transformed itself at lightning speed into one of the most digitalized economies in the world. To cope with this, extensive work has been put in place to establish frameworks and diverse systems that can sustain this level of digital economy. With traditional cash payments all but obsolete, let’s examine the five most popular payment methods used by the population in Singapore.
Mobile Payments
Paying through digital wallets has easily become the biggest and most popular way for people to pay for things in Singapore. A 2024 study reported that digital wallets made up around 39% of e-commerce transactions and 29% of point-of-sale transaction value. This is more than what was recorded for both credit cards and cash. The top digital wallets used in Singapore are DBS PayLah! (sitting at 25% in-store usage) and Apple Pay at 22%. Digital wallets make things quick and seamless for people when paying in stores and also offer promotions and rewards for continual use, which incentivises their use.
Credit and Debit Cards
Still dominant in the digital finance world, credit and debit cards are the second most widely used payment method in Singapore. They remain widely used for various transactions, including those in supermarkets, SG gambling sites, and e-commerce stores. Players of online casino platforms like the security of credit cards, along with their ability to offer instant deposits to wager immediately. Credit cards are generally favorable for their fraud protection, widespread acceptance, and cashback rewards. This means people who are using them on sites that may be susceptible to fraud or hacks, such as online casinos, have more confidence in their transactions not being disrupted.
Whilst credit and debit cards used to be the top payment method in Singapore in 2022, with credit cards accounting for 36% of POS transactions and debit cards sitting at 21%. This same report in 2022 detailed that credit and debit cards together accounted for 53% of all e-commerce transactions. This annihilated the representation of cash payments at only 1%. Despite it appearing that, since 2022, credit and debit cards have been overtaken by digital wallets, they are still favored by a considerable chunk of Singaporeans when choosing their payment method.
QR Payments
Singapore’s SGQR system is a streamlined multiple payment app that compiles QR codes into a single code. This makes the process of checking out easy for customers and businesses. This method has meant that QR payments have become a good, quick, and hassle-free way for people in Singapore to transact money. SGQR has been widely adopted, with more than 160,000 merchant points now in use in the country.
The app now includes services like PayNow and GrabPay, which have brought in further popularity from the public to switch to using QR payments as their preferred payment option.
PayNow
PayNow is a real-time bank transfer system that was brought into existence in 2017. Since then, it has grown considerably and supports peer-to-peer and customer-to-merchant transactions using phone numbers, NRIC, or QR Codes. This makes paying direct and simple without the need for any middlemen. Almost all of the major Singaporean banks now support PayNow, and with this payment method constantly evolving and getting made better, it continues to have increasing prominence in connecting international payments, such as linking with India’s UPI, which has opened the door for tourists to pay directly using the UPI apps.
EZ-Link
This used to be used only as a transit card. However, recent additional features have been added to it, and EZ-Link can now essentially be used as a digital wallet and allow for mobile payments. EZ-Link now has NFC, QR, auto top-up, and overseas compatibility capabilities. Whilst this system remains important for public transport in Singapore, it can also now be used for retail purchases.
