Singapore’s card payments market is forecast to grow by 12.8% to reach SGD136.8 billion ($102.1 billion) in 2023, driven by a growing consumer preference for electronic payments, according to GlobalData, a leading data and analytics company.

GlobalData’s Payment Card Analytics reveals that the card payments market in Singapore registered a 17.5% growth in 2022 to reach a value of SGD121.3 billion ($90.5 billion), supported by a post-pandemic rise in consumer spending and a quick rebound in economic activity.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “Singapore’s payment card market is innovative and rapidly growing. Growth in card payments is supported by a high banked population, growing consumer preference for electronic payments, the expanding payments infrastructure, and constant efforts from the government to promote electronic payments.”

Singapore has a strong card acceptance network, with over 62,146 point of sale (POS) terminals for every million individuals in 2022. This is much higher than its peers, including Australia (38,314), New Zealand (37,710), China (29,455), Hong Kong (25,885), and Japan (20,208).

Sharma continues: “Singapore’s payment card market is well developed, with over three cards per individual. While cash payments are witnessing a steady decline, the trend has become more prevalent due to the pandemic, with banks and merchants urging consumers to use non-cash payment methods. A well-developed payment infrastructure and high merchant acceptance are the key drivers for the card payments market growth in the country.”

Credit and charge cards accounted for 62.4% of total card payments value in Singapore in 2022. Associated benefits such as discounts, cashback, and interest-free instalment options make them the preferred card type among consumers. Credit and charge card payments grew by 18.2% in 2022 and are expected to grow by 12.8% in 2023. Debit cards account for the remaining 37.6%.

The COVID-19 pandemic drove a significant shift in consumer preferences toward electronic payments, particularly contactless payments. Singapore has one of the most developed contactless card markets in the world. Support from big banks and merchants has made contactless a mainstream payment method, which is accepted by all merchants in the country from retailers to hawkers.

Sharma concludes: “Singapore is back on a growth trajectory following the impact of the pandemic. The quick economic recovery and rise in consumer spending coupled with constant improvement in payment infrastructure will further push growth in the overall card payments market, which is expected to register a compound annual growth rate (CAGR) of 9.5% between 2022 and 2026 to reach the value of SGD174.2 billion ($130 billion) in 2026.”