Singapore’s payment landscape moves quickly, shaped by mobile-first habits, strong digital infrastructure, and clear regulatory direction. For global merchants, understanding how people pay in Singapore helps you choose payment methods that support smoother transactions and reduce unnecessary friction.
Consumer behaviour and preferences in Singapore
Singapore has become one of the most active digital payment markets in Southeast Asia. You see this in the rapid growth of e-commerce, the widespread use of mobile devices, and the steady decline of cash usage.
The expansion of e-commerce continues, supported by strong logistics networks and high internet penetration. As more consumers shop online, they expect a payment method in Singapore that is convenient, secure, and familiar.
The Monetary Authority of Singapore (MAS) has also encouraged a shift toward a cashless society through initiatives aimed at expanding real-time and digital payment adoption. With these efforts, local buyers are now comfortable with QR code payments, instant bank transfers, and digital wallets.
Mobile-first behaviour plays a significant role in everyday transactions. Many people use their phones for food delivery, transport, retail, and online checkout. Payments need to be quick, with minimal steps.
Real-time and contactless options are an expectation as well. They help shorten queues in-store and speed up the checkout process online. These preferences explain the rise of PayNow, FAST transfers, digital wallets, and tap-to-pay mobile solutions.
Top payment methods in Singapore
Credit and debit cards
Cards remain a leading payment method in Singapore, especially for larger purchases and cross-border transactions. Singapore has one of the highest card penetration rates in Southeast Asia, with 1.73 debit cards and 1.61 credit cards per capita. MAS also reports that more than 98% of adult residents have bank accounts.
A high proportion of consumers hold several cards, and many use them to earn points, cashback, and merchant offers. Around 73% of Singaporeans own at least one credit card, and roughly 10% hold six or more. These habits make cards a consistent payment method preferred for both in-store and online spending.
The main international card schemes in the market include Visa, Mastercard, American Express, and UnionPay.
Digital wallets
Digital wallets have grown quickly and are now part of daily spending across Singapore. Usage expanded from 30.4% in 2020 to a projected 94.7% by 2025, as per 2C2P. The mobile wallet user base was about 1.5 million in 2020 and is expected to reach 3.2 million by 2025.
Wallets are widely used for transport, food delivery, retail, and e-commerce transactions. They appeal especially to mobile-first buyers.
The most popular digital wallets in Singapore include:
- GrabPay: 35.3%
- FavePay: 23.5%
- DBS PayLah!: 18.8%
- Singtel Dash: 11.8%
- EZ-Link: 4.7%
PayNow and FAST bank transfers
PayNow is a widely used digital payment method in Singapore. It allows instant transfers using a phone number, NRIC, or UEN, making it suitable for peer-to-peer, business, and bill payments.
FAST transfers support real-time payments between banks. Many merchants adopt PayNow and FAST because buyers only need their mobile banking app to complete a transaction. No separate app download is required, and the process is fast.
QR code payments (SGQR)
SGQR is a unified QR framework created by MAS to simplify QR-based payments across the country. It combines multiple schemes and wallet providers into a single QR code.
Merchants use SGQR for F&B, retail, transport, and hawker environments. It is helpful for smaller businesses that want a low-cost acceptance method. QR codes are gaining traction for quick in-person payments where speed and familiarity are crucial.
Apple Pay and Google Pay
Apple Pay and Google Pay provide secure, tokenised, contactless payments. They appeal to users who prefer to store their cards on their phones and pay through near-field communication.
Because these methods link to existing payment cards, they offer a familiar experience while still supporting mobile-first checkout.
Buy now, pay later (BNPL)
Buy-now-pay-later options are now common across fashion, electronics, and lifestyle categories. Providers include Atome and ShopBack PayLater.
BNPL gives buyers the option to split payments into instalments. This can increase average order values and encourage higher-ticket purchases. Merchants sometimes face longer settlement cycles and additional service fees, so they need to review the cost structure before adopting it.
NETS
NETS is Singapore’s domestic debit card and QR payment scheme. It is widely used in physical retail and everyday services. NETS offers lower fees compared with international card schemes and fast settlement, which appeals to local businesses.
Merchants must have a local registration and settlement account to accept NETS.
Cash and cash-on-delivery (declining trend)
Cash continues to be used by a smaller segment of the population, including older buyers and certain service categories. As digital payment methods in Singapore expand, cash usage keeps decreasing.
Quick comparison of Singapore payment methods
|
Payment method |
Description |
Pros |
Cons |
Merchant considerations |
|
Credit and debit cards |
Traditional card payments for online and in-store spending |
Familiar, rewards, strong consumer trust |
Higher fees, chargebacks |
Suitable for high-value and international transactions |
|
Digital wallets |
Mobile wallets for online and in-person use |
Fast, mobile-friendly, broad consumer adoption |
Varies by provider |
Useful for mobile-first buyers and e-commerce |
|
PayNow / FAST |
Real-time bank transfers |
Instant, low friction |
Requires mobile banking app |
Strong for local buyers and bill payments |
|
SGQR |
Unified QR payment standard |
Easy setup, cost-effective |
QR scanning required |
Good for F&B, hawkers, small merchants |
|
Apple Pay / Google Pay |
Mobile contactless payments |
Secure, convenient |
Depends on device usage |
Ideal for tech-focused buyers |
|
BNPL |
Instalment-based payments |
Higher AOV, flexible for buyers |
Service fees, longer settlement |
Strong for lifestyle and electronics |
|
NETS |
Local debit and QR system |
Lower fees, quick settlement |
Local-only |
Good for offline local retail |
|
Cash / COD |
Physical payments |
No technical setup |
Declining demand |
Limited to niche cases |
Merchant considerations when choosing payment methods
What’s best for my business?
Selecting the right mix depends on your operating model. Online businesses may prioritise card payments, digital wallets, and PayNow to support fast checkout. In-store businesses may combine NETS, SGQR, and tap-to-pay options.
If you sell higher-ticket items, cards and BNPL tend to work well. Micro-payments often lean towards wallets and instant bank transfers.
Think about whether your buyers are local or international. Tourists tend to use cards, while local residents prefer PayNow, wallets, or NETS for daily payments.
Cost comparison across methods
Different payment methods have different fee structures. Cards tend to have higher fees due to interchange and scheme costs. Digital wallets and QR options may offer lower costs. PayNow often carries lower fees for businesses.
Settlement time also varies. Cards may take longer to settle. PayNow, FAST, and NETS offer faster settlement cycles.
Fraud and dispute exposure also differs. Card payments involve chargebacks, while bank transfers and QR payments result in fewer disputes.
Setup and compliance
Merchants accepting card payments need to follow PCI DSS requirements. SGQR, PayNow, and NETS require local registration and onboarding.
If you serve international buyers, review foreign exchange exposure and settlement currency options.
How to start accepting payment methods in Singapore
- Identify your sales channels across e-commerce, point-of-sale, app, or delivery platforms.
- Review which payment methods your buyers use most, based on whether they are local or international.
- Select a provider that supports key options such as cards, digital wallets, PayNow, FAST, and SGQR.
- Check settlement times, reporting tools, and supported currencies to confirm they match your operational needs.
- Confirm whether your business needs recurring payments or subscription billing.
- Complete the onboarding process, including any required local registration.
- Test your payment setup across your selected channels before going live.
Conclusion
Singapore continues to adopt digital payment methods at a rapid pace. By understanding how people pay and which payment methods Singapore buyers prefer, you can offer a payment experience that meets local expectations. A well-chosen mix of cards, wallets, bank transfers, QR codes, and alternative options can help you support more transactions and deliver a smoother checkout across online and in-store journeys.
