Only six per cent of consumers in Singapore – the lowest percentage from all markets surveyed – would revert to their old methods of payments after a vaccine for the COVID-19 virus is widely available, according to Visa’s study on the business outlook released on Wednesday (27 January).
The financial services corporation noted that a global rise in contactless payments shows “no sign of slowing down” this year as it provides consumers with a secure, convenient and safe way to pay.
Its study revealed that nearly seven in 10 consumers in Singapore have used contactless payments whenever possible in the past three months, making it their top adjustment.
Additionally, about 76 per cent of consumers in Singapore would prefer to use contactless payments more than before as compared to the global average of 65 per cent.
Kunal Chatterjee, Visa’s country manager for Singapore and Brunei, said that consumers are using device-initiated payments more than before as a result of the COVID-19 pandemic.
“Last year, one in five Visa cardholders in Singapore use mobile tokens to make payments on average per month. The number of device-initiated transactions has grown more than 50 per cent compared to 2019,” he added.
It was found that 91 per cent of small and micro businesses (SMBs) in Singapore have adopted new digital technologies to meet changing consumer behaviours, compared to the global average of 82 per cent.
More than four in five Singapore SMBs, or 82 per cent, expect consumers will prefer contactless payments, even after a vaccine is widely available.
The study also revealed that SMBs are investing in security and fraud protection solutions, where Singapore is the leading market.
Singapore consumers have also adjusted by shopping online whenever possible and not using cash as much, Visa stated.
“Despite SMBs doing their best to keep pace with changing preferences and the emergence of new technologies in payments and commerce, many are still dependent on community support.
“We will continue to help SMBs bounce back from COVID-19 with initiatives such as Where You Shop Matters, that help encourage consumers to support local businesses, while supporting the digitalisation of local SMBs,” said Mr Kunal.