Xero’s recent report, “I Want To Pay That Way,” uncovers a remarkable shift towards digital payments among consumers in Singapore. This change is particularly pronounced among younger generations, urging small businesses to evolve their payment solutions. The study, conducted by Lonergan Research, surveyed 1,000 consumers and 506 small business leaders in Singapore, revealing significant trends in digital payment adoption.
Key findings illustrate that 76% of Singapore consumers prefer credit or debit cards for transactions, with more than half using services like PayNow and bank transfers. Particularly noteworthy is the 30% of shoppers who rely solely on mobile payments, exceeding the global average of 21%. Generation Z leads the charge, with 68% favoring PayNow, driving alignment with Singapore’s Smart Nation initiatives aimed at nurturing a digital economy.
Despite the rise of cashless options, the report highlights a disconnect; nearly 18% of consumers would turn away from businesses that do not accept their preferred payment method. While cash usage remains prevalent at 79%, over half of small businesses have phased out cash payments altogether.
The advantages of adopting modern payment methods are substantial. About 87% of small businesses reported benefits, such as reduced payment times and increased customer retention. Interestingly, 31% are intrigued by advanced options like implantable payment chips, a figure notably higher than counterparts in Australia and New Zealand.
Bharathi Ramavarjula, SVP of Payments at Xero, emphasized the importance of understanding diverse payment preferences to accelerate revenue growth for small businesses. The report underscores the imperative for Singapore’s enterprises to adapt their payment options, ensuring competitiveness in an increasingly digital landscape.