GlobalData, a leading international data analytics company has released information on Singapore's now well-developed payment market. There is estimated to be an increase of over 50 million Point of Sale (POS) terminals in the nation between 20221 and 2025.
“With 60 POS terminals per 1,000 individuals in 2021, Singapore led the Asia-Pacific region. The government is also playing its part to further drive the acceptance of electronic payments among merchants,” said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.
The majority of the nations small merchants and hawkers that once relied on cash, are now transitioning to digital methods pf payment. Singapore's POS infrastructure is now largely complimented by cashless systems such as, QR codes or other mobile based payments.
The increase in implementation of POS systems in in part thanks to a Government subsidy that helps pay for its installation. Funds were increased from 70-80% between April 2020 and March 2022.
But for the most part, it was the launch of the Singapore Quick Response Code (SQRC), a QR code payment system that has less admin fees, due to a more streamlined process for merchants, that can be credited for the cashless society. Acceptance points for the SQRC system rose from 42,000 in 2019 to 260,000 in 2021, and continues to rise. To further encourage this implementation, the Government is bearing the SQRC's minimal transaction fees on payments until December 31 2023
“Singapore has always been at the forefront of payment innovation, and follows government’s vision to become a ‘less-cash’ society.”
Cashless payments are the way of the future for Singapore.