According to Visa’s recent Consumer Payment Attitudes Study, Singapore’s contactless payment penetration rate is upwards of 90%, largely due to its prevalence in supermarkets and restaurants. With the Monetary Authority of Singapore (MAS) encouraging e-payment adoption as a safer and more convenient alternative to cash, and card and PIN-based payments amidst the pandemic, it is therefore no surprise that retailing and foodservice proximity e-commerce saw significant growth in 2020.
COVID-19 has seen consumers spending more time at home and turning to digital devices and the internet to keep themselves entertained. According to a joint report from Google, Bain & Co and Temasek Holdings, 40% of existing users in Singapore of subscription video on demand and 31% of users of subscription music on demand joined as a result of COVID-19.
While COVID-19 accelerated the shift towards remote and proximity e-commerce, not all categories benefited equally. E-commerce categories related to tourism, such as transport, lodging, and attractions and experiences, saw significant declines in demand, as consumer mobility was restricted due to lockdowns and a standstill in international travel.
With the worst months of COVID-19 appearing to be over, the country is looking forward to economic recovery and the resumption of international travel. The Ministry of Trade and Industry (MTI) expects economic growth in 2021 to be around 4-6%, with a gradual but uneven recovery across various economic sectors.
With the economic downturn, and consumers being more prudent with their spending, buy-now-pay-later (BNPL) – an up-and-coming business model – has started to gain traction in Singapore. Prominent players include Hoolah and Atome.
Quick commerce (q-commerce) has also started to take off recently, led by online food delivery operators such as Foodpanda and Grab, with Pandamart and GrabMart, respectively. Consumers are promised quick delivery of essentials such as groceries, health and beauty products, and electronics products, usually within 30 minutes.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page