Singapore’s card payments market is projected to grow by 14.3% in 2024, reaching S$162.1 billion (US$122.4 billion), driven by a shift towards non-cash payments, according to data and analytics company GlobalData.

The market saw a 20.9% growth in 2022, followed by a 13.7% increase in 2023, amounting to S$141.9 billion.

Ravi Sharma, lead banking and payments analyst at GlobalData, attributes the growth to Singapore’s robust payment infrastructure, high awareness of electronic payments, and the rise of contactless transactions.

Point-of-sale (POS) terminal penetration in Singapore is among the highest in Asia, with 53,562 terminals per million people. In addition, government initiatives, such as the Productivity Solutions Grant (PSG), have further promoted electronic payments by providing subsidies for POS installations to local businesses.

Contactless cards have also seen widespread adoption, with over 70% of surveyed Singaporeans using them for payments as of last year. Credit and charge cards dominate the market, accounting for 65.6% of the payment value, driven by benefits like flexible payment options and rewards, while debit cards represent 34.4%.

Based on the current figures, GlobalData say the card payments market in the city-state is expected to continue growing at a compound annual growth rate of 11.1%, reaching S$247.3 billion by 2028.

“Singapore’s payment card market is innovative and rapidly growing and efforts from the government, financial authorities, and banks ensure a robust banked population, a high level of awareness of electronic payments, and developing payment acceptance infrastructure encourage consumers to use electronic payment methods for day-to-day transactions,” says Sharma.

“The growth in the payment card market is also characterized by the rise of contactless payments, and a surge in credit and charge card payments,” he adds.