Singapore leads in global transition to mobile commerce
New Worldpay research predicts that m-commerce will overtake desktop sales in Singapore by 2019 – nearly half a decade sooner than the global average
SINGAPORE, November 12, 2018 – Singapore has been crowned a global leader in the move from desktop to mobile shopping, this according to new data from leading payments technology company Worldpay.
The data found that mobile commerce is on track to overtake desktop sales globally in 2023. In Singapore, m-commerce is set to become the most popular online channel in 2019 – nearly half a decade ahead of the global average – at which point it will make up 52 percent of all online sales. This represents a compound annual growth rate (CAGR) of 13 percent for mobile in Singapore, whereas desktop sales are predicted to remain stagnant over the next four years.
Phil Pomford, general manager for Asia Pacific, Global Enterprise eCommerce at Worldpay, said: “With a penchant for shopping and some of the highest rates of smartphone penetration in the world, it’s no surprise that Singapore is a frontrunner in the global transition to mobile commerce. As Singapore’s intrepid and imaginative consumers continue to spark the next wave of shopping innovation, we will no doubt see more and more creative merchants tailor their offerings to address the demands of mobile shoppers.”
In total, the e-commerce market in Singapore is poised to grow by 32 percent between now and 2022, ultimately reaching US$7.4bn in the next four years.
Worldpay’s 2018 Global Payments Report also found that shoppers in Singapore are increasingly turning to alternative, cashless payment options such as e-wallets when they shop online, as well as at offline points of sale in brick-and-mortar stores. This trend is in line with Singapore’s Smart Nation initiative and ongoing push for a robust cashless future.
E-wallets are forecast to make up 12.7 percent of e-commerce payments in Singapore by 2022, representing a CAGR of 14 percent over the next four years. The growth of alternative, cashless payment methods is also reflected in-store, with e-wallets set to experience a significant 32 percent CAGR from now until 2022, eventually making up an estimated 9.4 percent of the point-of-sale market in Singapore.
Pomford added, “Cashless is a priority on Singapore’s national agenda, and the 2018 Global Payments Report shows that consumers are embracing new forms of payment. As infrastructure develops to offer shoppers fast and convenient alternative payments such as e-wallets, we can expect the rise of cashless to remain a defining payment trend in Singapore. Merchants can prepare for what’s coming next by ensuring that their payment systems are compatible with a range of cashless options like e-wallets, so consumers can enjoy a seamless, secure, quick shopping experience from desktop, to mobile, to brick-and-mortar shops.”
Worldpay has published guidelines to help merchants capitalise on emerging m-commerce and cashless opportunities:
- Consider developing a branded app. We know that 71 percent of shoppers prefer apps over mobile browsers when shopping on their smartphone, and many say they won’t buy from a business that doesn’t have an app. It’s no longer enough to just have a mobile-optimized website – if you’re not prioritizing a transactional app for your brand, you’re not putting your best foot forward.
- Make it easy and use biometrics to speed up the journey. Shoppers are becoming increasingly familiar with the concept of fingerprint scanning and facial recognition via mobile devices, so they do not shy away from using these methods as a form of authentication. Biometrics place payments at the back of the user’s mind, giving them a faster and friction-free experience, making the payment seem ‘invisible’.
- Identify the most popular payment methods in each territory in which you operate. There are huge differences in payment preferences across the world and within Asia, and alternative payment methods like e-wallets are gaining share over traditional credit and debit cards. There’s no one-size-fits-all in any region so you’ll need to understand the best options for your company.
The Global Payments Report was compiled using a mixture of proprietary data and Worldpay experts, supported by third party vendors such as GlobalData, Euromonitor, eMarketer and yStats. This year, for the first time, the report covers not only e-commerce trends but also in-store transactions.
To learn more about these key insights and trends in global payments, please visit worldpay.globalpaymentsreport.com
About the 2018 Global Payments Report
The 2018 Global Payments Report offers a snapshot of the current payment landscape across 36 countries globally. Worldpay’s Market Intelligence team compiles the Global Payment Report using a combination of authoritative third-party vendors and other publicly available data. This compiled data was analyzed using Worldpay’s proprietary data model and categorization scheme, with support from McKinsey. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions, informed by our processing of more than 40 billion transactions annually via more than 300 payment types, across 146 countries and 126 currencies.
The projected growth figures contained in this report were sourced from GlobalData and McKinsey and relate to the industry as a whole, not Worldpay’s business. The data was collected using consumer surveys, B2B surveys and input from local research teams. 45,000 consumers were surveyed globally in February and March 2018.
Any indicative predictions based on the data we have used should be treated as such. No representation or warranty, expressed or implied, is made by Worldpay, Inc. and/or any of its affiliates, directors, officers, employees, agents or advisers as to the reliability, accuracy, timeliness or completeness of any information, opinions or analysis contained in this document, which is not intended to be relied upon by you or any person for any purpose whatsoever.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global omni-commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. The company is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B.
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