Payments Trends in Singapore: Ticket to E-Money Paradise?

August 25, 2010
Industry Trends
Asia-Pacific

Abstract

There is burgeoning growth in next-generation payment methods, such as stored value, in Singapore. The aggregate amount of e-money transactions has now exceeded total withdrawals from ATMs.

Singapore has matured into an Asian financial center on par with the likes of traditional financial powerhouses such as Hong Kong. In a new report, Payments Trends in Singapore: Ticket to E-Money Paradise?, Celent offers an in-depth analysis of the newest trends in Singapore’s payments market, evaluating prospects for future developments.

In January 2009, Singapore adopted a new standard, CEPAS (Contactless e-Purse Application), which was formulated at the behest of the government to replace Sony’s FeliCa technology. This shift to CEPAS has changed the landscape of the payments market and helped to spur an increase in the scope and use of e-money within Singapore.

“Some observers see Singapore’s retail payments market as saturated,” says KyongSun Kong, an Analyst with Celent’s Asian Financial Services Group and coauthor of the report. “But the increasing use of e-money and the advent of next-generation e-payment methods, such as contactless mobile payments, will continue to drive growth in this market.”

This report examines current trends in Singapore’s payments market, analyzes transaction volumes in the payments space, and identifies rapidly growing payment types as well as those expected to grow in the future. The report also details how this island nation has been a pioneer in the area of electronic payments.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Payments Settlement System in Singapore

8

ATM Trends

10

Payments Market: Continued Growth in the Cards

12

 

Credit Cards

12

 

Debit Cards

13

Change Afoot in the Check Payment Market

17

GIRO

19

E-Money Market: Growing by Leaps and Bounds

20

The Future of Online Banking in Singapore

23

Conclusion

24

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

Sign in to download reports and access personalized information