Singapore’s ePayments Space: 13 Key Numbers Investors Should Know

Electronic payment or ePayment has become a hot topic of discussion.

The space received a boost from Prime Minister Lee Hsien Loong during his National Day Rally. During his speech, he pointed out that Singapore is trailing China in implementing a widely used electronic means of payment. To learn more, I looked up several articles from (here and here) and The Edge Singapore (here) for context.

With that in mind, here are 13 figures that investors might want to sit up and take notice:

  1. Nets reported that its transactions totalled $24 billion in 2016, up from $23 billion in 2015 and $21 billion in 2014. The payment system operator said that it has 100,000 Nets acceptance points in total with 30,000 points which are ready for digital payments. Nets also claimed that it had the largest number of ePayment merchants at 37,000.
  2. Yet, cash remains a popular medium of transactions. According to a survey by US-based online payment operator PayPal, 43% of Singapore consumers still prefer to use cash, compared with 3% who use eWallets and 2% who use mobile payments.
  3. Singapore consumers cite privacy as the number one concern (51% of responses) behind their reluctance to use digital payments.
  4. On the merchant front, 34% of businesses said that it would be able to reach a wider set of audience through sales online. Digital payments could enable online sales. A whopping 85% of businesses that sell goods and services through social media said that digital payments had become the number one method of transaction.
  5. The Monetary Authority of Singapore (MAS) said that an industry taskforce has been formed to develop a common QR code for Singapore. The group includes Singapore’s big three banks namely DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corporation Limited (SGX: O39) and United Overseas Bank Ltd (SGX: U11), telco Singapore Telecommunications Limited (SGX: Z74) and key players in the financial space like UnionPay, Mastercard and Visa. Part of the taskforce’s aim is to develop a common QR code.
  6. For another context, DBS Group said that it has 15,000 QR code transactions per month through its DBS PayLah platform. OCBC also offers QR payments via its Pay Anyone app while UOB has its Mighty app.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of United Overseas Bank and Mastercard. Motley Fool Singapore contributor Chin Hui Leong owns shares in PayPal and Mastercard.