Digital wallets on track to be Singapore’s top online payment method by 2026

BNPL is set to surpass US$1b in transaction value by 2026.

Digital wallets are set to overtake credit cards as Singapore’s leading online payment method by 2026, according to a study by payments technology provider FIS.

Credit and debit cards currently make up 53% of e-commerce transactions and 57% of point of sales (POS) transactions as of 2022, the study found. Digital wallets made up 40%, already higher than the share of just credit cards, which is at 36% of all online transactions.

By 2026, it is set to become the leading online payment method, FIS said.

At POS, digital wallets are also the fastest growing payment method, with FIS estimating that its transaction value will increase twofold between 2022 and 2026.

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Buy Now Pay Later gains traction
Singapore’s total e-commerce transaction value for buy now pay later (BNPL) is projected to almost double to surpass US$1b by 2026, FIS estimates.

Despite the increase in transaction value, its market share will only rise to 6% in 2026.

Cash use surprisingly remains strong in Singapore, representing 19% of all POS transactions. This is higher than in Hong Kong and Australia, where cash use made up just 10% and 6% of all POS payments, respectively.

FIS noted that the slower uptake of digital wallets in POS payments is due to Singapore’s more mature economy being heavily influenced by using credit and debit cards.

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