, Singapore
233 views
Photo by Aline Ang via Pexels

Payment cards hold 40% share in Singapore's e-commerce


The market is expected to hit $23.6b at a CAGR of 9.1% by 2028.

Payment cards led Singapore's e-commerce transactions in 2023 with 40.1% of the market share, according to GlobalData. 

According to GlobalData’s 2023 Financial Services Consumer Survey, credit and charge cards are the preferred choice, making up 31.9% of the market share, due to their enticing perks such as interest-free installments, rewards, cashback, and discounts.

Alternative payment methods, including popular brands like Apple Pay, PayPal, and Google Pay, are also gaining ground, collectively accounting for 38.6% of transactions.

The rise of buy now, pay later (BNPL) solutions and partnerships between e-commerce giants and payment providers, such as Atome's collaboration with Amazon, are contributing to this shift.

Bank transfers, supported by instant payment systems like FAST and PayNow, represent 15.5% of e-commerce transaction value, whilst cash on delivery accounts for over 5% of payments.

GlobalData projected a 13% growth in 2024, reaching $16.6b (SGD22.3b), driven by advanced tech infrastructure and growing alternative payment adoption. 

By 2028, the market is expected to hit $23.6b (SGD31.7b) at a compound annual growth rate of 9.1%.

ALSO READ: Around 7 in 10 Gen Zs in Southeast Asia prefer e-commerce 

“Singapore’s e-commerce market is well developed supported by the country’s robust technology infrastructure, which ensures the availability of high-speed internet, rising smartphone penetration, high urbanisation, and growing number of tech-savvy customers,” said Poornima Chinta, senior banking and payments analyst at GlobalData.

Chinta also suggested that as e-commerce grows, younger generations will drive alternative payment methods, challenging card dominance.
 

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!