Ninety-four percent of micro, small, and medium enterprises (MSMEs) in Singapore will accept some form of digital payments in 2022, compared to 82 percent globally, according to Visa’s Back to Business Study.
Nearly three-quarters (72%) of them are expecting their businesses to become fully cashless within the next two years.
Additionally, one-third of small businesses in Singapore also plan to accept payments via Buy Now Pay Later (BNPL) solutions (35%, compared to 21% globally) and digital currency (33%, compared to 24% globally).
Nearly three in five Singaporeans (57%) expect to use digital payments more often in 2022, compared to less than half globally (46%).
Younger generations are driving this shift — millennials (66%) and Gen Z (47%) are more likely than boomers (41%) to increase their usage of digital payments.
With the increasing stickiness of digital payments, failure to offer the option has become a deal breaker for many.
Nearly two in five Singaporeans (38%) chose to walk out of a store empty handed because they were unable to pay for their purchases digitally.
Millennials (49%) and Gen Z (48%) are more likely to do the same compared to boomers (18%).
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%).
“Even as the world grapples with uncertainties brought about by the pandemic, one thing I’m certain of is that digital payments have enabled many businesses to thrive, especially in Singapore.
Eighty-nine percent of Singapore SMBs agree that accepting new forms of payment is fundamental to business growth, compared to less than three-quarters (73%) globally,“
said Kunal Chatterjee, Country Manager, Singapore & Brunei, Visa.
To date, Visa has helped to digitally-enable 24.8 million SMEs worldwide, or 50% of the multi-year goal it set in 2020 to digitalise 50 million SMBs.
The Visa Back to Business Study was conducted by Wakefield Research in December 2021 and surveyed 2,250 small business owners with 100 employees or fewer in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates and United States.
Written by Fintechnews Singapore