The Payments senior analyst at Global Data Nikhil Reddy says that - The COVID-19 pandemic had a negative impact on e-commerce sales in Singapore via international payment gateway as people were more cautious. The pandemic also had an impact on expensive purchases like travel and lodging, which will have an even greater impact on e-commerce sales in 2020.
Gradually, the market recovered and Singapore's retail sector has become more resilient as COVID-19 continues to shift customer behaviour to favour online purchasing due to health and safety constraints, thanks to the growing popularity of e-commerce.
According to the Google e-Economy SEA 2020 report, the country's internet economy expanded by 87% in 2020, somewhere its credit goes to COVID-19 because this pandemic forced people to work and take classes from their homes.
So, the one who wants to invest in Singapore needs to start their business now because in the upcoming year it will become the hub of e-commerce businesses.
Which online payment method is preferred in Singapore?
In Singapore, an individual can find many payment service providers. Each payment service has its cons as well as pros. The merchant needs to understand the customer preferred payment mode. Providing the customer their preferred payment mode not only increases the checkout conversion rates but also helps with an excellent user experience.
Some of the most favorable payment methods in Singapore are -
Credit cards -
Using a credit card to make an online payment is one of the most popular payment methods in Singapore. Approx 73% of people have at least one credit card in Singapore, so you can understand the popularity of credit cards. Some of the most popular credit card merchants in Singapore are DSB, Visa, Mastercard, American Express, Citibank, OCBC, HSBC, etc. During COVID-19 most Singaporeans purchase their good with credit cards via credit card processing singapore.
After card transactions, making the payment via cash is the second most popular payment method in Singapore. But gradually, Singaporeans move towards e-wallets and card payments from cash. In Singapore, approx 22.3% of people make the payment via cash in 2021 and it is expected that it will become 13% in 2025.
Digital wallets -
Gradually, digital wallets are becoming most popular not only in Singapore but all over the masses. Research made by "Rapyd" the global fintech group revealed that Singapore is one of the top digital wallets markets in the Asia-Pacific. In Singapore, people adopt digital wallets. Recently, there are more digital wallet companies are ready to start and expand throughout the country.
PayCly is one of the most popular payment gateway Singapore and offers digital wallets also. Along with this, there are also Grabpay, Paypal, AliPay, Nets, PayLah, etc. are available.
Mobile Contactless Payments -
It is another payment method which gained popularity in the last few years. This payment method uses NFC technology to make the payments. To make the payment via mobile contactless payments method it is essential to have a user device in close range of an NFC-enabled POS machine or ATM.
These contactless payment apps also use QR codes and mobile phone numbers to make payments.
Debit cards -
It is another popular payment method in Singapore. Customers make payments for their goods by deducting funds from their bank accounts. This type of payment method is generally preferred for automating recurring payments such as utility bills, loans, provident funds contributions, etc.
Bank transfer -
Singaporeans also prefer bank transfers to make payments. This mode of payment generally prefers to make the payment for a large sum of money.
Buy now pay later -
Nowadays, buy now pay later services have become commonplace. It is predicted that in the upcoming few years the uses of BNPL(buy now pay later) will increase. By 2029, the BNPL Gross Merchandise Value will increase from US$507.2 million to US$3022.3 millions.
Which payment gateway solution is best to start a business in Singapore?
As you know, in Singapore lots of payment services are available. It is quite difficult for any merchant to choose the best payment gateway according to their business model. While choosing the payment gateway, you ought to keep in mind a favorable payment mode.
Here, we suggest you go with PayCly. As PayCly is one of the most popular high risk payment gateway whose service is available worldwide. PayCly offers you most of the payment modes which we discuss above for their customer. Along with that, it also has many features which help you to grow your business.
One can prefer this payment service provider for all types of businesses such as low-risk businesses, high-risk businesses, or mid-risk businesses.
Final thoughts -
Any merchant needs to provide their customer with the best payment solution in Singapore as it is one of the fastest-growing online markets. In Singapore, generally, people prefer credit cards, cash, e-wallets, online banking, etc. payment mode.
One can get many options in Singapore, but we recommend going with PayCly. As PayCly supports all types of business with preferable payment solutions. PayCly offers you many benefits at a reasonable rate. Its pricing structure can easily get fit all types of business whether small or large. Let connect with paycly for high risk merchant account for your high-risk business.