Singapore payment card market set to skyrocket

singapore payment card

New analysis from GlobalData revealed post-pandemic consumer spending and a fast recovery in Singapore’s economic activity has driven the payment card market’s growth forecast up by 12.8 per cent.

After recording a 17.5 per cent growth in 2022 to reach SGD121.3 billion ($90.5 billion), the market is expected to hit SGD136.8 billion ($100 billion) in 2023.

The continued growth can be attributed to Singapore’s widespread card acceptance network, with over 62,000 point of sale (POS) terminals for every million individuals in 2022 compared to approximately 38,000 in Australia and in New Zealand, close to 30,000 in China, almost 26,000 in Hong Kong and just over 20,000 in Japan.

“Singapore’s payment card market is innovative and rapidly growing,” Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, said.

“Growth in card payments is supported by a high banked population, growing consumer preference for electronic payments, the expanding payments infrastructure, and constant efforts from the government to promote electronic payments.

“Singapore’s payment card market is well developed, with over three cards per individual. While cash payments are witnessing a steady decline, the trend has become more prevalent due to the pandemic, with banks and merchants urging consumers to use non-cash payment methods.

“A well-developed payment infrastructure and high merchant acceptance are the key drivers for the card payments market growth in the country.”

Just over 60 per cent of the total card payments value in Singapore last year was attributed to credit and charge cards, with its wide-ranging benefits including discounts, cashback and interest-free instalments making them the favoured consumer card type. Their market share is expected to grow by 12.8 per cent in 2023 also, after recording an 18.2 per cent growth in 2022.

“Singapore is back on a growth trajectory following the impact from the pandemic,” Sharma said.

“The quick economic recovery and rise in consumer spending coupled with constant improvement in payment infrastructure will further push growth in the overall card payments market, which is expected to register a compound annual growth rate (CAGR) of 9.5% between 2022 and 2026 to reach the value of SGD174.2 billion ($130 billion) in 2026.”