In Singapore's developed e-commerce landscape, payment cards have reigned supreme, offering a convenient and secure way to transact online.
Payment cards account for 40 percent of the market share of online transactions in 2023, a testament to their ease of use and widespread acceptance.
As consumers continue to embrace the convenience of online shopping, Singapore's e-commerce market is poised for significant growth.
It is expected to rise 13 percent in 2024, eventually reaching a staggering SGD 22.3 billion, presenting a promising landscape for businesses and consumers.
This surge can be attributed to advanced tech infrastructure and the growing adoption of alternative payment methods.
Analytics from GlobalData shows that the Singapore e-commerce market will increase at a compound annual growth rate of 9.1 percent between 2024 and 2028, reaching a value of SGD 23.6 billion by 2028.
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 the growing number of tech-savvy customers," said Poornima Chinta, senior banking and payments analyst at GlobalData.
With 99 percent of Singapore households having internet access and 97 percent having access to a smartphone, the proper infrastructure is in place for e-commerce payments.
There are various payment card types, 31.9 percent being credit and charge cards. This is due to value-added benefits, including interest-free instalment payment options, reward programs, cashback and discounts associated with these cards.
Alternative payment methods are slowly gaining traction and are becoming the second most popular form of payment, with 38.6 percent of payments being received via brands such as Apple Pay, Paypal, and Google Pay.
Bank transfers remain less popular at 15.5 percent, with cash on delivery at 5 percent.
Generation Z is rapidly embracing the convenience and flexibility of alternative payment methods, which are set to challenge the dominance of payment cards in the near future.
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