Card payments market in Singapore set to grow by 14.3% in 2024, driven by non-cash payment trend

SINGAPORE: Singapore’s card payments market is projected to experience significant growth, with a forecasted increase of 14.3% to reach $162.1 billion in 2024, according to a recent report by GlobalData.

This growth is primarily attributed to the continued shift among consumers towards non-cash payment methods.

In 2022, the market saw a notable expansion of 20.9%, fueled by heightened consumer spending. The positive trend persisted into 2023, with card payments rising by 13.7% to $141.9 billion.

This upward trajectory underscores the growing adoption of card payments by both consumers and merchants.

A key driver of this growth is the Singaporean government’s Productivity Solutions Grant (PSG), which offers businesses subsidies for IT solutions and equipment, including point-of-sale (POS) installations.

This initiative has significantly enhanced the adoption of card payments across various sectors.

Singapore’s advanced payment infrastructure further supports this growth. The country’s POS terminal penetration stands at 53,562 per million people, ranking it among the highest in Asia, second only to South Korea.

This widespread availability of POS terminals facilitates the increasing acceptance of card payments.

In 2023, credit and charge cards accounted for 65.6% of the total card payment value, reflecting their popularity due to benefits such as flexible payment options and reward programs.

Debit cards represented 34.4% of the market, predominantly used for low-to-medium value transactions.

Additionally, over 70% of Singaporeans reported having access to contactless cards and utilizing them for payments, highlighting a strong preference for convenience in transactions.

GlobalData’s survey of 50,000 respondents aged 18 and older, conducted across 40 countries in Q2 2023, provides insights into the evolving card payments landscape. /TISG