How to find the best payment gateway for Singapore

Singapore’s e-commerce market keeps growing, powered by a highly connected population and reliable digital infrastructure. Online sales are projected to reach USD 5.6 billion by 2025, showing how quickly consumers have embraced digital shopping. For merchants, choosing the right payment gateway affects conversion rates, cash flow, and customer trust.

What makes Singapore’s payment landscape unique

Singapore combines high smartphone use, advanced banking systems, and strong trust in digital payments. Super-apps like Grab and DBS PayLah! have changed consumer habits, making digital wallets the preferred way to pay online.

In 2024, digital wallets accounted for about 39% of online transaction value—surpassing credit cards. As these wallet ecosystems mature and integrate with banking and lifestyle services, they are set to remain a dominant payment method.

The country’s open economy and clear regulations from the Monetary Authority of Singapore (MAS) also attract global businesses. This balance between local digital adoption and international trade makes Singapore a demanding but highly rewarding market.

Popular payment methods in Singapore

Knowing which payment options locals prefer helps businesses pick the right gateway. Here’s a quick breakdown:

• Credit cards (42%) – Still popular for bigger or recurring payments, especially because of cashback and rewards.
• Digital wallets (29%) – GrabPay, ShopeePay, and PayLah! are widely used for quick, contactless payments.
• Bank transfers (12%) – PayNow leads this category with instant transfers via mobile number or QR code.
• Debit cards (10%) – Favoured by younger shoppers who prefer to avoid credit.

A reliable payment gateway should support all these methods while also handling international options.

Best payment gateway in Singapore: what to look for

Choosing the best payment gateway in Singapore depends on how well it aligns with your business goals, customer base, and technical setup. Key areas to evaluate include:

Supported payment methods

Singapore’s shoppers expect flexibility. A gateway should support local favourites like PayNow, GrabPay, eNETS, and DBS PayLah!, while also handling global methods such as Visa, Mastercard, Apple Pay, and Alipay.

If you plan to sell regionally, coverage of 300+ payment methods and multi-currency support prevents checkout drop-offs. Broad compatibility means fewer “payment not available” errors — a common cause of abandoned carts.

Fees and pricing

Transaction costs in Singapore usually sit between 2.8% and 3.9% plus S$0.50 per sale, but the fine print matters. Watch for hidden charges like FX markups, chargeback fees, and settlement delays that quietly erode margins. High-volume merchants can often negotiate lower rates or volume-based discounts. Always compare total cost, not just the advertised rate, and insist on full fee disclosure before signing.

Security and compliance

Customers pay with confidence only when they trust the system. Look for PCI-DSS Level 1 certification, plus compliance with MAS and PDPA standards for data protection. Modern gateways use real-time fraud detection and encryption to keep transactions secure without slowing checkout. The goal is frictionless safety, strong defence that customers never notice.

Integration and ease of use

A payment gateway should work with your existing stack, not fight it. Compatibility with platforms like Shopify, WooCommerce, or Magento can save hours of technical setup.

Clear APIs, a sandbox testing environment, and responsive onboarding support make integration smoother. For small teams, intuitive dashboards are invaluable for managing daily transactions without needing a developer.

Global features

If you’re selling beyond Singapore, cross-border readiness is key. The best gateways process multiple currencies and pay out in Singapore dollars (SGD) within one to four business days. Fast settlements improve cash flow, while reliable exchange handling avoids losses. Omnichannel capability, supporting online, mobile, and in-store payments, ensures a consistent experience across every touchpoint.

Support and scalability

Even the best systems fail without solid support. Choose a provider offering 24/7 assistance via chat or phone, especially if your sales run round the clock. Scalable infrastructure is vital for handling traffic spikes during campaigns or festive seasons. Insightful reporting tools that track approval rates and failed transactions also help you stay proactive and profitable.

Cross-border challenges and how to solve them

Expanding into or operating from Singapore involves several cross-border considerations:

• Currency conversion and FX fees – Differences in settlement currencies can impact profitability. Gateways offering local acquiring or settlement in SGD help reduce these costs.
• Payout delays – Varying banking systems can slow fund transfers. Choosing a provider with regional acquiring capabilities shortens settlement cycles.
• Fraud management – Southeast Asia’s growing digital economy has led to more fraud attempts. Effective fraud prevention and compliance tools are essential to maintain customer trust.
• Regulatory compliance – Local laws such as MAS licensing and PDPA data privacy requirements add complexity for new entrants. A gateway familiar with Singapore’s compliance landscape provides reassurance.

For global merchants, selecting a gateway with both international reach and local presence simplifies cross-border payments and reduces operational risk.

Best practices for implementation

• Test transactions in a sandbox environment. Run trial payments before going live to confirm that the system processes correctly across browsers and devices. This helps identify integration errors early and ensures checkout reliability.
• Offer multiple payment options. Include a mix of cards, digital wallets, and bank transfers such as PayNow. Singaporean shoppers expect choice, and offering familiar options reduces abandoned carts.
• Display prices in Singapore dollars (SGD). Showing prices in local currency builds trust and helps customers understand exactly what they’ll be charged. It also protects merchants from foreign exchange confusion or disputes.
• Monitor transaction data from day one. Keep an eye on approval and decline rates, as well as refund trends. High declines may signal technical issues or card issuer problems that need quick attention.
• Enable secure authentication tools. Use methods like 3D Secure or biometric verification to prevent fraud. These tools improve security without slowing down legitimate customers.
• Review provider performance regularly. Check your fees, settlement times, and feature updates at least once a year. Payment technology evolves quickly, and what works now might not be the most efficient or cost-effective later.

Conclusion

Singapore’s digital-first shoppers expect fast, reliable, and familiar online payment experiences. The best payment gateway for Singapore is one that combines local relevance with global flexibility, ensuring merchants can serve both domestic and international audiences effectively. By understanding consumer preferences, local regulations, and cross-border realities, merchants can select a top payment gateway provider that supports growth while maintaining security, speed, and trust.