Market Size of Singapore Payments Industry
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2018 - 2020 |
| CAGR | 7.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Singapore Payments Market Analysis
The Singapore Payments Market is expected to grow at a CAGR of 7.5% over the forecast period 2022 to 2027. The ongoing growth of real-time payments and the government's efforts to encourage digitalization are expected to drive market growth. With the government now allowing non-bank financial institutions (NFIs) to access banking retail payment infrastructure, instant payments in Singapore are set to increase even more. NFIs that have been granted a major payment institution licensed under the Payment Services Act are now permitted to link directly to FAST and PayNow.
- One of the primary goals of the Singapore government's Smart Nation vision is to build an e-payments society, which is one of the key goals. The payments sector in Singapore is now modern and open to new players. This industry is available to non-bank financial institutions (NFIs), promoting competition and interoperability among e-wallets. For instance, Grab, a ride-hailing firm, introduced GrabPay, and Singtel, a telecommunications company, introduced DashPay.
- Mobile phones (notably smartphones) have become an integral aspect of an individual's life as the global economy has grown rapidly. Furthermore, for most individuals worldwide, the internet has become an indispensable element of their daily lives. As a result, the number of cellphones and internet users has surged worldwide, resulting in a major expansion in the payments sector.
- According to the Rakuten Insight survey, nearly 90% of respondents said they had used e-payment methods to complete a transaction. DBS PayLah!, PayPal, and GrabPay are the top three e-payment services in Singapore right now.
- Moreover, In Singapore, the number of e-wallet users has reached about 4 million, compared to a population of roughly 5.7 million, indicating a 70% adoption rate of e-wallet users, as stated by The Asian Banker. GrabPay, one of Singapore's most popular e-payment platforms, has surpassed 3 million customers on its digital financial services, with 3.5 million predicted by 2023.
- The Covid-19 outbreak has resulted in a substantial shift in payment practice, including reducing cash payments, moving from in-store to online payment options, and adopting rapid settlements. These changes have opened up new possibilities for payment providers in Singapore.
- Moreover, From a consumer perspective, it is projected to enhance digital payment acceptance in Singapore. COVID-19 was one of the main factors that accelerated this. Aside from digital adoption, customers' enthusiasm for being cashless is bolstered by the enhanced convenience and advantages.
