Offering the right payment method is critical to checkout conversion and growing revenue. However, the key is not to offer all popular payment methods in Singapore to every customer at checkout.
Rather, it means evaluating which are the most relevant methods for your customers and the channels you sell in, and working with your financial technology provider to optimize customer experience and conversion.
What makes Singapore unique
There are a number of distinguishing features of the Singaporean market. For example, the ecommerce market has a huge share (55%) of cross-border payments, with many businesses selling internationally as well as domestically. This means that any discussion of payment methods in Singapore should also take into account the needs of consumers in nearby markets.
In this post, we will explore some of the most popular payment methods in Singapore and the wider Southeast Asian region, including key considerations for enterprises to keep in mind.
Global payment methods that are popular in Singapore
Cards
Channels: Online and in person
Type: Cards
First, it’s important to acknowledge that the most popular payment methods in Singapore are similar to those found in many markets around the world; cards. Visa, Mastercard, American Express, and other credit cards lead, with almost 8 million in circulation. Credit cards are popular in Singapore because they are convenient, help consumers build credit scores, earn points for rewards programs, and accumulate cashback and discounts.
However, it should be noted that in Singapore, interchange fees tend to be more expensive than in some other markets. Therefore, while cards are an important part of the payment methods mix for Singapore-based businesses, they should also be supported with a targeted mix of other local payment methods.
Digital wallets
Channels: Online and in person
Type: Wallets
Digital wallets such as Apple Pay and Google Pay ™are also increasingly popular in Singapore, with 48% of consumers using them when shopping. These wallets provide a fast, simple, and secure checkout experience to help businesses drive sales in stores, in app, and on the web.
Popular local payment methods
PayNow
Channels: Online and in person
Type: Real-time
PayNow is Singapore's real time payment network, overseen by the Monetary Authority of Singapore (MAS), and promoted by the Singaporean government. It is a QR code-based payment flow, where the customer scans the code with their bank or wallet app to make the payment. Users transfer funds from one bank or wallet account to another through the FAST network, a regulated and standardized payment network.
PayNow is a very popular payment method familiar to Singaporean consumers, and also has lower costs than interchange fees, making it particularly useful for businesses in Singapore looking to optimize costs.
GrabPay
Channels: Online and in person
Type: Wallet, Buy Now, Pay Later (BNPL)
GrabPay offers a variety of services including ride hailing, food and grocery services, investment and insurance, and online payments, with each consumer activity supported by a robust rewards and promotion offering. The GrabPay wallet enables consumers to store balances and pay for goods and services immediately. However, there are also BNPL options for consumers to pay in installments, or pay in full the following month. Businesses that want to reach underbanked customers across Southeast Asia will find GrabPay especially relevant.
Atome
Channels: Online and in person
Type: Buy Now, Pay Later (BNPL)
Atome is a BNPL payment method used by over 30 million shoppers in Singapore and across Southeast Asia. Shoppers split purchases into three interest-free installments, and the payment method supports both ecommerce and in person (static and dynamic QR code) payments. Among retailers, Atome is especially popular in beauty, fashion, travel, lifestyle, and home decor, while shoppers enjoy using Atome because it is easy to use.
Relevant local payment methods in Malaysia and Indonesia
Since many Singaporean businesses sell to consumers in Malaysia and Indonesia, it’s worth exploring the respective payment method landscapes of these two markets.
Malaysia
Digital payments are growing rapidly in Malaysia, with digital wallets enjoying their time in the spotlight. According to Adyen’s commissioned research, 63% of Malaysian consumers use digital wallets. However, as compared to Singapore, credit card payments are less prevalent, with penetration of only 20%.
Therefore, besides the payment methods already mentioned above, some key payment methods for businesses to consider include online banking, and cash-based payments at 7-Eleven. The 7-Eleven payment method lets customers order goods and services online while still being able to pay using cash.
Indonesia
Indonesia is experiencing rapid growth in ecommerce, mobile payments, and digital wallets. Supporting local payment methods is crucial to reach Indonesian consumers.
For example, the online banking payment method DOKU VA is the one of most popular payment methodd for ecommerce businesses in the market. Enterprises that want to reach the tens of millions of Indonesian consumers who use their wallets need to consider DOKU wallet, GoPay, or DANA.
How Adyen supports merchants in Singapore and Southeast Asia
When selecting a payments technology provider, a key consideration is if the fintech platform supports all the relevant payment methods you need to drive sales growth now, and into the future.
Adyen supports all the key payment methods in Singapore, Southeast Asia, and globally, to ensure you are future-proofed. Furthermore, our single platform enables you to accept payments online, in app, or in store with one integration.
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