Market Trends of Singapore Payments Industry
This section covers the major market trends shaping the Singapore Payments Market according to our research experts:
The payments market in Singapore is driven by boom in the e-commerce industry
- J&T Singapore has been assisting e-commerce merchants in taking advantage of the booming digital economy since 2020. Shopee, Lazada, Amazon, Shopify, Shopcada, and WooCommerce are just a few of the major marketplaces and e-commerce platforms with which they have linked. It established shipping corridors all across the planet. In Changi and Penjuru, they established warehouses and fulfillment centers. They also started an internal service quality project in October 2021 to ensure that we'll give outstanding service to all its clients.
- The increase in internet penetration is one main factor driving the e-commerce market. In January 2021, Singapore had 5.29 million internet users, as stated by CNBC. Between 2020 and 2021, the number of internet users in Singapore increased by 146 thousand (+2.8%). In January 2021, Singapore had a 90.0% internet penetration rate.
- Furthermore, the country is focusing on various collaborations with international players to develop 6G. For instance, in July 2021, The University of Oulu's 6G Flagship, the world's first and foremost 6G research, development, and innovation initiative, and Singapore agreed to collaborate on 6G technology. The alliance will concentrate on 6G technology research and development. 6G will enable greater speed, lower latency, and greater capacity for data networks.
- Because of the COVID-19 epidemic, many consumers continued to work from home and preferred to shop online rather than in stores. This paved the way for significant growth in e-commerce sales and businesses worldwide.
- Singapore's payments business is seeing a surge of innovative digital payment alternatives. It has emerged as the newest number one trend for online payments in Singapore, owing to the increasing use of smartphones and the advent of digital wallet payment options such as PayPal and Buy Now Pay Later services.
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Retail industry shows the significant growth in Payments Market of Singapore
- The retail industry is one of the fastest-growing industries in Singapore. As a result, the retail sector represents a wealth of opportunities for new business, trading, and investing. The payment market in Singapore is developing with the changing customer behavior. Trends such as mobile payments, internet banking, instant payments, and the Government's growth initiatives are affecting the payment market in the country.
- In September 2021, the Singapore Department of Statistics reported that online retail sales accounted for 15.2% of total retail sales. Given the current economic climate, many physical businesses are transitioning to the internet as a source of increasing revenue.
- According to The Business Times, in February 2022, SINGAPORE retail sales increased by 11.1% in 2021, reversing a 15.3% decline the previous year and ending a three-year losing run. Annual advances in discretionary areas such as automobiles, clothing and shoes, watches and jewelry, and leisure products aided full-year growth.
- Furthermore, This steady growth in the retail sector presents many opportunities for payment providers in the region to improve their payment platforms and apps to meet the growing demand. In addition, the increasing use of digital wallets and contactless card payments in the region presents a lucrative potential for payment providers.
- In June 2021, Fave, a payments network, launched a test program in Singapore and Malaysia that will provide over 6 million customers with rapid access to interest-free credit that can be used at over 40,000 retailers.
- In Singapore, new services are being launched to meet the increased demand for internet delivery, with local cab company ComfortDelgro establishing a food delivery service and Google enabling the finding of food pick-up and delivery choices throughout the city-state. As residents hide down at home and follow the country's safe-distance regulations to manage the COVID-19 epidemic, there has been a huge increase in retail and meal delivery services.
