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.