Xero research: Gen Z drives digital payments adoption in Singapore

As detailed in its research, 76% of Singapore consumers leverage credit or debit cards for payments while 55% of them use funds transfer service PayNow or bank transfers. At the same time, nearly 22% of the population utilises the e-wallet service GrabPay and 21% rely on Buy Now, Pay Later (BNPL) platforms. Also, the survey reflects a shift in perspectives, with it underlining that 30% of consumers based in the region only carry their mobile phones to conduct payments when shopping, which is substantially higher percentage compared to the worldwide average of 21%. This trend is highly supported by the younger generations which are embracing new digital payment methods, with PayNow being the preferred one for 68% of Gen Z users and 29% also leveraging GrabPay.

Furthermore, Xero revealed that, by not meeting consumer payment preferences, businesses’ customer retention rates and revenue can be substantially impacted. The research found that 18% of Singapore-based consumers would go to another business with provides more payment options if a company does not deliver at least one of their preferred payment methods. On the other hand, even if trends indicate a move towards a cashless society, physical currency remains the favoured option for 79% of consumers, with them utilising it for transactions in everyday life. Yet, 51% of local small businesses no longer accept cash payments, which makes Singapore the least likely country from the surveyed ones to receive physical currency.