Contributed by Lim Jing Wei, Chief Fintech Officer
The Worldpay from the FIS Global Payments Report 2023 offers a snapshot of today’s payment landscape: globally, by region, and in 40 selected markets. The report tracks consumer payments during online shopping and at the point of sale, identifies key payment trends, and projects future scenarios for payment method shares as well as market size. The report’s data was collected using a survey of 46,000 consumers, secondary research, and extensive validation by payment experts from each region; the complete research methodology is published as an appendix to the report. Published yearly since 2015, the Global Payments Report is an industry benchmark used by merchants, financial institutions, press, and researchers worldwide.
The report summarises the top trends that are transforming the payment industry globally. Let’s find out how each trend is affecting Singapore.
1) Account-to-account (A2A) payments are taking off, driven by real-time payment (RTP) rails. RTP schemes increasingly enable A2A payments from persons to businesses (P2B). In Singapore, Fast and Secure Transfers (FAST) is an example of RTP. FAST, launched in 2014, allows nearly instant transfers of SGD between account holders of 24 banks and 6 non-bank financial institutions operating in the market.
2) Consumer use of credit cards remains strong as illustrated in the report 42% and 36% dominating the payment shares for e-commerce and POS methods respectively.
3) Digital wallets extend their omnichannel dominance. In Singapore, it continues to increase its share across all shopping channels. Up from 29% in 2021 to 32% in 2022 for e-commerce, Singapore features a diverse landscape of e-wallet providers such as DBS PayLah and GrabPay.
4) No longer king, cash remains essential. The decline of cash continues as the government promotes digital payment, but certain demographics still rely on the use of cash as their sole payment method.
5) Buy Now Pay Later (BNPL) enters the next phase of its evolution. Singaporeans are avid users of buy-now-pay-later (BNPL), which accounted for 5% of e-commerce spending in 2022. Other than the domestic BNPL providers such as PayLater by Grab and SPay Later by Shopee, banks are offering BNPL as well.
6) Cryptocurrencies are emerging as a viable person-to-business (P2B) payment option in other parts of the world, but not Singapore.
CYS Global Remit recognises the rapidly evolving payments landscape and constantly keeps itself up to date and introduces relevant methods for its customers.