Digital payments in Singapore - statistics & facts
Singapore has a highly connected population with one of the highest internet penetration rates in the region, enabled by extensive 4G connectivity and a standalone 5G network. This is supported by a nationwide digitalization strategy, driven by the Monetary Authority of Singapore's (MAS) vision of an innovative and connected society. It allows the country to be one of the most advanced in Southeast Asia in cashless adoption, and to have the highest average transaction value of digital payments in the region. These innovations build on an already well-established payment environment, with the population enjoying nearly universal access to bank accounts and one of the highest credit card penetration rates in Asia.
Since 2021, Thailand and Singapore connected their PromptPay and PayNow payment systems, allowing instant, low-cost mobile transfers between countries using only the recipient's phone number. In September 2023, during the last ASEAN summit in Jakarta, negotiations were launched for a Digital Economy Framework Agreement, which will enhance the region's cooperation in digital trade, cross-border e-commerce and digital payments. Recently, in November 2023, the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) jointly launched the real-time payment systems link between Singapore's PayNow and Malaysia's DuitNow. This type of initiative is expected to be expanded throughout Southeast Asia, which would avoid U.S. dollar conversions for transfers within ASEAN.
Mobile wallets and electronic transfers
Mobile wallets and electronic transfers represent a major part of the country's digital payments. Their development has been facilitated by national infrastructures and inter-bank collaborations. With 1.8 million users in 2022, mobile wallet usage is expected to grow over the next few years. Super apps such as Grab reinforce the use of these wallets, allowing global access to a multitude of everyday services with a single payment method. In line with Singapore’s vision of an innovative and digitalized society, national electronic transfer programs have been implemented to facilitate instant funds exchange. PayNow enables peer-to-peer transfers between customers of ten banks, 15 banks and four non-bank financial institutions (NFIs). The national Fast And Secure Transfers (FAST) infrastructure complements this program by allowing electronic transfers between customers of participating banks for the instant transfer of Singapore Dollar funds.Since 2021, Thailand and Singapore connected their PromptPay and PayNow payment systems, allowing instant, low-cost mobile transfers between countries using only the recipient's phone number. In September 2023, during the last ASEAN summit in Jakarta, negotiations were launched for a Digital Economy Framework Agreement, which will enhance the region's cooperation in digital trade, cross-border e-commerce and digital payments. Recently, in November 2023, the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) jointly launched the real-time payment systems link between Singapore's PayNow and Malaysia's DuitNow. This type of initiative is expected to be expanded throughout Southeast Asia, which would avoid U.S. dollar conversions for transfers within ASEAN.
