From QR code payments to transferring money to our friend’s mobile number, payments have evolved far beyond cash and plastic cards in our heavy wallets. The reason for this is simple: changing customer demands. We expect convenience, timeliness and seamless control of payment options.
On top of that, COVID-19 dramatically boosted our usage of technology, as every business and transaction had to digitally transform itself to make it contactless. Naturally, the more we shop online, payment modes followed, moving Singapore towards a cashless society.
Singapore is very advanced with well-developed payments infrastructure, as compared to other countries. So, it’s fair to say this innovative evolution is just the beginning. Read on to find out 5 Digital Payments Trends to watch in Singapore 2022.
1. Buy now pay later
Would you rather tell your customer a package is $500 or only $41/month for 12 months interest-free?
Installment payment plans are nothing new for large purchases, but the emergence of “buy now pay later “ (BNPL) has become one of the hottest trends as they allow any retailer to offer installment payments for any product, appealing to young consumers. And usually it’s interest-free.
In 2021, buy now, pay later was 3% of the online payment market and is expected to rise to 13% in 2024. So if you’d like to boost your sales game, consider signing up with a BNPL provider.
2. Pay by link and digital invoicing
COVID-19 welcomed different ways that promote social distancing, including people paying for their purchases remotely. Payment by links and digital invoicing are simple, stress-free methods and allow customers to make payment at their own convenience.
3. Digital Wallet
A digital wallet or e-wallet is what allows you to safely store your favourite debit and credit cards on your mobile devices, so you can pay in-person, in-app or online. According to a study by Visa, more than half (56%) of Singaporeans used mobile payment methods in 2021, 12% higher than in 2020. Popular digital wallets like Apple Pay, Samsung Pay and Google Pay have paved the way, even allowing you to earn cashback and extra rewards for purchases you make every day.
How will digital wallets change in the coming year? Better biometric authentication and artificial intelligence for prevention or better tracking of frauds and theft.
4. Contactless card payment
Because they are supported by most payment stations, contactless card payment is a leading method. No need for wallets with cash and cards. Just tap your card on the payment terminal, and you’re done.
5. Pay by QR code
Paying via a QR code has quickly become a common payment mode in Singapore, especially since we can safely say most people in Singapore, if not all, are familiar with scanning a QR code with the usage of TraceTogether check-in in Singapore due to the pandemic. All you need to do is scan the codes displayed on the terminals using their mobile phones to have their payments processed.
Not only are QR code payments an easy option to offer, they are fast, safe, and fuss-free. It will be interesting to see how this technology adapts to the ever-changing world of technology.
Digital Payments is here to stay
Thanks to their ease of use and convenience, digital payments are here to stay. Businesses have to step up to embrace new digital payment trends, while ensuring we protect and safeguard our customers’ data. Thus, it is important to find a reliable payment method to offer your customers.