Singaporean small and medium-sized enterprises (SMEs) intend to accept buy now, pay later (BNPL) and cryptocurrency payment options in the year 2022, according to Visa's latest report.
In a significant shift towards digital transactions, a recent survey reveals that nearly three in five Singaporeans (57%) expect to use digital payments more frequently in 2022, compared to less than half globally (46%). This trend is driven by the increasing adoption of digital payment methods by small and medium-sized enterprises (MSMEs) in the country.
According to the Visa Back to Business Study, conducted by Wakefield Research in December 2021, 94% of micro, small, and medium enterprises (MSMEs) in Singapore will accept some form of digital payments this year, compared to 82% globally. One-third of these businesses also plan to accept digital currency payments, and one-third plan to accept payments via Buy Now Pay Later (BNPL) solutions. However, the study did not mention any specific statistics regarding the adoption of BNPL solutions or digital currency payments by Singaporean small businesses.
The shift by MSMEs towards digital payments is mirroring the behaviour of consumers. The survey found that failure to offer digital payment options has become a deal breaker for many Singaporeans. Thirty-eight percent of Singaporeans chose to walk out of a store empty handed because they were unable to pay for their purchases digitally.
Younger generations, including millennials and Gen Z, are leading the charge in the increased usage of digital payments. Millennials (49%) and Gen Z (48%) are more likely to expect these digital payment methods compared to boomers (18%). Kunal Chatterjee, Country Manager, Singapore & Brunei, Visa, stated that 89% of Singapore SMBs agree that accepting new forms of payment is fundamental to business growth. Globally, only 73% of SMBs agree with this statement, according to Chatterjee.
The top digital payment methods that Singaporeans expect to be accepted at brick-and-mortar retail stores include contactless cards (80%), mobile contactless payments (55%), and e-wallet apps (47%). Visa has helped to digitally-enable 24.8 million SMEs worldwide, or 50% of its multi-year goal to digitalise 50 million SMBs, as of the present.
The Visa Back to Business Study did not mention any specific statistics regarding the shift by Singaporean consumers towards using digital payments more frequently in 2022. However, it is clear that the trend towards digital payments is gaining momentum in Singapore, with both consumers and businesses embracing this new way of transacting.
The article features an image that is edited based on a photo by Sergio Sala from Unsplash. Adeline Kim, the Country Manager of Visa for Singapore and Brunei, is quoted in the article.
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