E-wallets yet to change payment habits in Singapore: Worldpay report

• Nov 12, 2018

E-WALLETS or mobile wallets have yet to change payment habits among Singapore consumers, found the 2018 Global Payments Report by payment processing company Worldpay.

Credit cards continued to be the most preferred way to pay for online and offline purchases in 2017, according to the report published on Monday.

For online or e-commerce purchases in the last year, credit cards formed the highest percentage (67 per cent) of payment methods.

E-wallets tied with bank transfer for second place, each constituting 10 per cent of payment methods.

Cash-on-delivery came in fourth with 5 per cent, while charge and deferred debit cards, as well as debit cards, took the last two spots with 4 per cent each.

For offline or point-of-sale purchases in 2017, cash was the top payment method with 40 per cent.

Credit cards came in second with 30 per cent, and debit cards third with 23 per cent.

E-wallets or mobile wallets took fourth place with only 4 per cent, followed by pre-paid cards as well as charge and deferred debit cards with 2 per cent each.

The report noted that while cash emerged as the top payment preference at the point of sale in 2017, cards were preferred by more consumers, with credit and debit card purchases collectively making up 53 per cent of point of sale purchases.

“Despite the country’s tech-savvy culture and high smartphone adoption rate, e-wallets haven’t changed payment habits yet, although they do contend with bank transfer for second-place share online,” the report added.

In 2017, the online or e-commerce spend per capita in Singapore was US$889, while the offline or point-of-sale spend per capita was US$21,481.

In 2018, the report projected that for online or e-commerce purchases in the Asia-Pacific, e-wallets will be the top payment method with 52 per cent, surpassing credit cards (17 per cent) and bank transfer (12 per cent).

Globally, e-wallets will also be the top payment method with 36 per cent, followed by credit cards (23 per cent) and debit cards (12 per cent).

For offline or point-of-sale purchases in the Asia-Pacific in 2018, cash will be the top payment method with 30 per cent, while e-wallets or mobile wallets will follow closely after with 27 per cent.

Globally, cash will also emerge as the top payment method with 31 per cent, followed by debit cards (29 per cent) and credit cards (20 per cent). Notably, e-wallets will come in fourth with only 16 per cent.

From 2018 to 2022, the projected compound annual growth rate (CAGR) for e-commerce spend is 7 per cent – higher than the projected CAGR for point-of-sale spend of 5 per cent, the report predicted.

Worldpay’s Global Payments Report, which uses data from Worldpay and Mckinsey, offers a snapshot of the current payment landscape in 36 select countries.

Source: https://www.businesstimes.com.sg/startups/e-wallets-yet-to-change-payment-habits-in-singapore-worldpay-report