Rapyd study: 50% of Singapore businesses seek fintech solutions

Tuesday 10 October 2023 11:01 CET | News

UK-based fintech Rapyd has published a study which shows that nearly 1 in 2 businesses in Singapore expressed a strong need for new fintech solutions.


Local businesses in Singapore acknowledge the widespread shift to digital payments but believe fintech solutions can be enhanced to meet their specific requirements. Unlike consumer payments, innovations in B2B transactions are lacking. Many businesses still depend on costly wire transfers and sluggish bank transfers for cross-border payments, hampering transaction efficiency.

Rapyd's report, titled '2023 State of B2B Cross-Border Payments in Singapore,' explores payment preferences and challenges faced by 100 B2B businesses in Singapore. This study is part of a larger global research effort involving 715 business owners and payment decision-makers in key markets like Brazil, Canada, Germany, Mexico, Singapore, the UK, and the US. The research aims to understand market conditions, complexities in cross-border payments for B2B enterprises, and the potential of fintech solutions in addressing these challenges.

Singapore businesses maintain confidence on global outlook

Local businesses in Singapore have emerged as cautious optimists when it comes to their perceptions of market conditions. Approximately 60% of respondents from Singapore expressed confidence in prevailing market conditions, indicating a measured level of trust in their business environment.

Moreover, Singaporean businesses have confidence in the country's economic stability, with market volatility and economic stability being their least concerns. Instead, they are closely monitoring increasing interest rates (53%) and a reduction in incoming work (43%), indicating their vigilance regarding financial developments and their effects on product and service demand.

Payment delays and costlier transactions take a toll

Many businesses, especially in Germany and Singapore, face substantial payment delays, with Singapore reporting delays of 2 to 10 days, or even more than 10 days, in sending or receiving payments. These delays are primarily due to the reliance on traditional wire and bank transfers. Businesses' adherence to these traditional methods complicates cross-border operations, affecting cash flow, supplier relationships, and overall efficiency. To address financial challenges, improving efficiency and reducing operational expenses are crucial steps for companies.

Further, the Rapyd research also highlighted that 43% of B2B companies in Singapore incur cross-border fees ranging from USD 10 to USD 25 per transaction. This rate is above the average observed across the surveyed markets, where approximately 36% of businesses face cross-border transaction fees within the same USD 10 to USD 25 range.

These elevated costs can hinder growth, limit expansion opportunities, and strain resources, posing a direct challenge to firms striving to capitalise on cross-border commerce and highlighting larger inefficiencies in the system.

Rapyd has published a study which shows that nearly 1 in 2 businesses in Singapore expressed a strong need for new fintech solutions.

48% of Singapore businesses seek payment tech solutions

A growing number of businesses in Singapore today realize the imperative for change. Digitisation is no longer a luxury but an absolute necessity. Nearly half – 48% – of respondents from Singapore identified 'Better Fintech Solutions' as the paramount factor in addressing their most pressing business concerns. This percentage surpasses any other category in Singapore and demonstrates that B2B businesses in the country prioritise fintech as a way to solve business problems more than their counterparts in any other country surveyed.

Advancing B2B digital payments in Singapore

Despite Singapore being one of the world's most advanced payment markets, many B2B businesses have yet to adopt digital payments. This presents a valuable opportunity for these enterprises to collaborate with innovative fintech firms and embrace modern payment solutions to harness the full benefits of Real-Time Payment networks and streamline payment processes to enhance their operational efficiency.

Moreover, Singaporean businesses themselves are displaying a strong commitment to digitisation, particularly for expediting payment processes. Approximately 38% of these businesses consider it a top priority, with an additional 29% identifying it as one of their primary objectives. This approach aligns with local government initiatives, which have introduced numerous schemes to encourage businesses to digitise and integrate financial technology into their operations.

Additional information about the study 

In 2023, Rapyd conducted a research study to understand the payment preferences and challenges faced by business-to-business cross-border companies in seven markets. The study includes responses from 715 business owners worldwide. The Singapore report focuses on insights from 100 B2B cross-border businesses located in Singapore. The survey, which was administered online, was targeted at individuals responsible for payment-related decisions within medium (50 to 499 employees) and large-scale enterprises (500 employees and over) spanning diverse verticals and industries.

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Keywords: cross-border payments, study, digital payments, fintech, B2B payments
Categories: Payments & Commerce
Companies: Rapyd
Countries: Singapore
This article is part of category

Payments & Commerce


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