How to set up online payments in Singapore (2026 guide)

Key takeaways:

• Setting up online payments involves nine clear steps, from identifying your business needs to meeting MAS compliance requirements.

• Singapore shoppers expect a mix of payment methods (cards, e-wallets, and local rails like PayNow). Offering variety directly affects how many complete their checkout.

• Airwallex supports 160+ local and global payment methods, settles in 14+ currencies, and helps you meet MAS compliance requirements from the moment you sign up.

Knowing how to set up online payments is an important step for any Singapore business selling online, but choosing a payment provider is only part of the process.

You also need to decide which payment methods to offer, make sure your checkout works smoothly, and meet the relevant regulatory requirements.

This guide walks you through the setup process step by step, from choosing the right payment methods and payment provider to completing the necessary compliance checks.

We’ll also cover what Singapore customers expect at checkout and how to choose a setup that can scale as your business grows.

How do online payments work?

Online payments work by sending a customer's payment details securely through a payment service provider (PSP). The PSP connects your checkout to the customer's bank, checks the transaction is valid, and settles the funds into your business account.

Here's what happens behind the scenes:

The payment flow, step by step

Here's what happens behind the scenes:

• Customer starts the payment: They enter their card details, use a saved one-click checkout, or pay through a digital wallet.

• Payment details are securely transmitted: The payment gateway sends the payment information to the payment processor.

• Transaction is authorised: The processor checks the transaction with the customer's bank or card issuer, which approves or declines the payment.

• Funds are transferred: Once approved, the payment is processed and the funds are eventually settled into your business account.

Which payment methods do Singapore shoppers expect?

Cashless payments are now routine in Singapore, across retail, bill payments, and transfers between individuals. QR codes are widely accepted, while PayNow and FAST allow customers to make fast bank-based payments.¹

You can read more about these options in our payment methods guide.

To accept these payment methods online, you'll also need a checkout on your website. This could be a hosted checkout page, an embedded payment form, or a custom integration through a payments API.

How to set up online payments

Setting up online payments doesn't have to be complicated, but there are a few key steps to get right. Here's what the process typically looks like from start to finish:

Step 1: Identify your business needs

Start by mapping out how you sell. If you run an online store, you need a checkout page. If you invoice clients, you need a way to send secure payment links.

Your business model shapes which provider and integration method suit you best.

Step 2: Choose a payment service provider

Compare providers on fees, supported payment methods, and settlement speed.

Before signing up with any provider, confirm they hold a licence from the Monetary Authority of Singapore (MAS) under the Payment Services Act. Working with a MAS-licensed provider means your funds are subject to safeguarding rules under Singapore law.

For help comparing providers, see our guide to payment gateways in Singapore.

Step 3: Complete account verification

Once you choose a provider, you'll go through a verification process. This typically means submitting your business registration details, proof of address, and information about your directors, so the provider can confirm you're a legitimate business.

Step 4: Integrate the payment provider with your website

How you integrate depends on your platform.

If you use Shopify, for example, you activate a provider under Settings > Payments in your Shopify admin, then enter your account credentials to connect it.² Other platforms, like WooCommerce or Wix, have their own plugin-based setup.

If you're building a custom site, you'll integrate through the provider's API instead.

For a deeper look at integration methods and which one fits your setup, read our guide to payment gateway integrations.

Step 5: Configure your payment methods

Choose which payment methods to offer at checkout based on what your customers use and what your provider supports. This could include cards, PayNow, bank transfers, and e-wallets.

Follow your provider's setup instructions to activate each payment method and configure any required business or settlement details.

Step 6: Test your payment system

Before going live, process a test transaction using each payment method you plan to offer. Check that the payment confirms correctly, the funds appear in your settlement account, and your order confirmation emails trigger as expected.

Step 7: Launch and go live

Once testing is complete, switch your checkout from test mode to live mode. Monitor your first few real transactions closely to catch any issues early.

Step 8: Manage transactions and monitor performance

After launch, keep an eye on your dashboard for failed payments, disputes, and settlement timing. Most providers give you reporting tools to track this.

Step 9: Maintain compliance and security

Review your compliance obligations regularly, including PCI DSS requirements if you handle card data directly, and keep your provider relationship in good standing.

How much does it cost to accept payments on a website?

Your costs depend on your industry, the payment methods you accept, your transaction volume, and the payment service provider you choose. The main costs to look out for are:

The important thing is to look beyond the headline transaction rate. A provider with a low percentage fee may still cost more once you factor in monthly fees, fixed transaction charges, chargebacks, and the payment methods your customers actually use.

Compare the full pricing structure based on your expected transaction volume and payment mix.

What is the most cost-effective way to collect money online?

The most cost-effective way to collect payments online is to use local payment rails where you can.

In Singapore, PayNow gives you instant, low-cost transfers, and GIRO works well for recurring billing. Both typically cost less than card payments to process.

If your customers prefer to pay by card, you can still manage costs by routing transactions efficiently and settling them directly into a multi-currency account, so you're not paying extra to convert currencies you don't need to convert yet.

Benefits and risks of accepting online payments

Accepting payments online can make it easier for customers to buy from you and help you reach customers beyond your physical location. But it also comes with costs, security risks, and compliance responsibilities.

Benefits

• Reach more customers: Offer cards, PayNow, e-wallets, and other payment methods so customers can choose how they want to pay.

• Improve cash flow: Get paid electronically without waiting for cheques or manual bank transfers.

• Boost conversions: Giving customers familiar payment options can reduce friction at checkout and help more customers complete their purchases.

• Scale into new markets: A payment provider that supports multiple currencies and payment methods can make it easier to start selling internationally.

Risks

• Fraud and chargebacks: Online transactions can expose your business to fraudulent payments and customer disputes.

• Payment processing costs: Different payment methods and card types can come with different fees, which can affect your margins.

• Compliance requirements: Accepting payments means meeting relevant regulatory and security requirements, including PCI DSS if you handle card data.

• Technical issues: Payment failures or checkout downtime can prevent customers from completing purchases.

Which types of businesses need to accept payments online?

Any business that sells to customers outside a face-to-face setting needs a way to accept payments online.

This includes eCommerce stores, SaaS companies billing on a subscription, service providers invoicing clients remotely, and marketplaces paying out to multiple sellers.

If you're still taking orders over email or bank transfer instructions, you're likely losing customers who expect a faster, more secure checkout. Setting up online payments removes that friction and makes it easier for customers to complete a purchase on the spot.

Set up your online payments with Airwallex

Airwallex gives you the tools to accept, manage, and settle online payments from one platform. Here’s what you can do with Airwallex:

• Accept 160+ payment methods: Offer credit cards, PayNow, GrabPay, Google Pay, and more through one checkout.

• Boost conversion and acceptance rates: Use Airwallex’s ML-powered optimisation engine, 3DS logic, and local acquiring to improve payment acceptance rates.

• Reduce chargebacks with built-in fraud prevention: An AI-powered fraud engine helps identify suspicious transactions and reduce chargebacks.

Frequently asked questions (FAQs)

What's the difference between a payment gateway and a payment processor?

A payment gateway captures and encrypts your customer's payment details, then sends an authorisation request. A payment processor moves that transaction message between the gateway, the card network, and the banks involved. Some providers, including Airwallex, combine both roles into a single platform, so you don't need to manage two separate relationships.

Do you need a merchant account to accept payments online?

Not always. Traditionally, accepting card payments required a separate merchant account plus a payment gateway. Many modern providers now bundle this into one account, so you can start accepting payments online without setting up a merchant account separately.

Is it safe to accept payments on your website?

Yes, as long as you work with a licensed, compliant provider. Your provider should handle encryption, fraud monitoring, and PCI DSS compliance for card data, so sensitive payment details never sit unprotected on your own servers.

How long does it take to set up online payments?

This depends on your provider and business type. Account verification is usually the longest step, since your provider needs to confirm your business details before you can go live. Once verified, integrating a hosted checkout page can take as little as a day, while a custom API integration takes longer.

Can you accept payments without a shopping cart?

Yes. If you don't run a shopping cart, you can still accept payments using a payment link or a virtual terminal, where you manually enter a customer's payment details on their behalf. This works well for service-based businesses that invoice clients rather than sell products online.

What's the easiest way to set up online payments?

The easiest way is to use a hosted checkout page, since your provider handles the design, security, and compliance for you. You just link to it from your website, so you avoid the extra development work a custom integration requires.

Sources:

1.  https://www.pwc.com/sg/en/publications/payments-state-of-play.html

2.  https://help.shopify.com/en/manual/payments/third-party-providers/configuring-providers