Q & A
Q & A
Online Payments in
Singapore is a city-state with a population of 5.5 million. It is the
5th wealthiest country in the world
, and the richest in Asia. Nearly 80% of households have access to very fast Internet and free Wi–Fi is broadly available, so Singaporeans are well connected and make an attractive audience for gaming and online shopping.
35% of adult Singaporeans reporting having a credit card
in 2014, and almost 90% report having a debit card. Moreover, 54% of Singaporeans list credit cards as their preferred method of payment for domestic e–commerce, making Singapore the most popular country in Southeast Asia for online credit and debit transactions. In spite of this, many digital content providers still choose not to include credit cards as a payment method given the high incidence of chargebacks.
96% of Singaporean adults reported having a bank account in 2014, many of whom actively use online banking. The service that enables customers to make online payments to merchants using their bank account is operated by the
Network for Electronic Transfers Singapore (NETS)
. NETS is owned by Singapore's largest banks – DBC Bank, OCBC Bank and United Overseas Bank (UOB) – and is designated as a national payment system by the Monetary Authority of Singapore. Accepting payments online via
is inexpensive for merchants (typically less expensive than a credit card payment, with much lower exposure to chargebacks) but customers are required to go through several page redirects and a number of steps (including logging into their online banking portal) to complete a purchase.
Cash Payments at Retail
Cash payments at retail is much less popular in Singapore than other countries in Southeast Asia on account of the prevalence of credit, debit, and online banking alternatives. That said, this service is offered by 7–Eleven and some other convenience store chains, but is mostly used by a relatively small subset of customers for the payment of utility and telephone bills.
Direct Carrier Billing (i.e. SMS billing, Telco payments)
There are three Telcos in Singapore: Singtel (with 4.1 million customers), StarHub (with 2.3 million customers), and M1 (with 1.7 million customers).
Mobile is an important channel for digital content and online shopping (m–commerce represents 30% of Singaporean e–commerce, generating
~$1.3bn of revenue
in 2013), and carrier billing is by far the most convenient and accessible way for customers in Singapore to make payments on their phone. Singapore is a predominantly postpaid market, and the country ranks highest globally for smartphone penetration, with
85% of the total population
owning a smartphone.
Direct carrier billing is Coda's flagship payment service.
to learn more.
The most popular game voucher in Singapore is Cherry Credits. Their vouchers can be found at a number of locations across the country.
Telcos in Singapore have not enabled third–party merchants to redeem prepaid mobile credit vouchers that they distribute in the same way that Thai telcos have – largely because most customers in Singapore use postpaid mobile accounts rather than prepaid ones – so it is not a channel that customers would intuitively understand and desire.
If you need help navigating Singapore's landscape of payment channels, or are interested in learning more about how Coda can help you monetize in this market,
get in touch!
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