Singapore sales by mobile devices are set increase considerably over the next five years, making the smaller Asian nation the third largest e-commerce market in South East Asia, according to Worldpay’s annual Global Payments Report.
Already leading Southeast Asia in smartphone and mobile broadband penetration, Singapore’s m-commerce market is set to grow 33% in the next five years, according to the report.
Some 73% of Singaporeans currently shop online. Cross-border shopping is also becoming more and more popular, with more than half of Singaporean consumers buying from international merchants, the research firm said.
“Retailers looking for a foothold to the future must prepare to deliver on a new set of demands in Singapore. Online shoppers are moving beyond the desktop, and beyond country borders. Savvy and well connected across multiple devices, they increasingly prefer to shop via mobile and want more opportunities to purchase from merchants around Asia, and the globe,” said Phil Pomford, General Manager for Asia Pacific at Worldpay.
“In order to deliver on the demands of Singaporean shoppers who expect a convenient, seamless experience no matter how they shop, merchants must create mobile-friendly payments so that shoppers always get a simple and secure checkout experience. To capture more cross-border trade, merchants should offer a variety of currencies and payment options to help online shoppers feel comfortable and confident during the checkout process.”
In Singapore, shoppers still favour credit cards (66%) but alternative payment methods are gaining traction in the payments market. Meanwhile, bank transfers and e-wallets are both set to nearly double in share by 2021, increasing from 11% to 21% and 13% to 21%, respectively.
The results show that online merchants need to offer a variety of payment options to win more sales, said the firm.
“Our report also uncovered that 70 per cent of Singaporean internet users would shop online more if offered loyalty benefits – a great tip for e-commerce businesses looking to gain a competitive edge in the fight for share-of-wallet amongst Singaporean shoppers,” added Pomford.
According to Worldpay, the total Singapore e-commerce market is set to see a growth slow down, forecasting a lift of 9% to reach US$6.5 billion by 2021. In comparison, China is expected to grow by 11%; South Korea will witness 19% growth and India is set to experience a 24% expansion in e-commerce market gains.
Worldpay’s research analysed e-commerce spending patteRns across 36 different markets on five continents.