Singapore eCommerce guide: Platform and payment strategy for Hong Kong businesses

Singapore is often the first destination for Hong Kong businesses expanding into Southeast Asia. With a highly developed business environment, efficient cross-border logistics, and established payment infrastructure, Singapore offers a strategic launchpad for regional growth. This guide outlines key trends in the market, introduces major eCommerce platforms, highlights operational and tax considerations, and explains how Airwallex supports efficient, compliant cross-border payment and collection strategies.

Singaporean market trends and outlook

eCommerce market size and growth

Online shopping has become a firmly established channel in Singapore’s retail landscape. In August 2025, online retail accounted for 13.1% of total retail sales, peaking at 13.4% in December 2024 amid year-end promotions. This indicates sustained consumer reliance on eCommerce, with predictable seasonal peaks driven by large-scale campaigns like holiday sales. For merchants, this trend enables more precise planning around marketing and inventory, especially when supported by Singapore’s mature logistics infrastructure.

Preferred payment methods in Singapore

Consumers value a seamless and immediate checkout experience. Credit cards (Visa, Mastercard, American Express) remain the dominant method for mid-to-high-value transactions and recurring payments. Mobile payment methods – such as PayNow, FAST, and digital wallets like GrabPay – are increasingly popular among younger consumers, driving both first-time and repeat purchases.

For cross-border merchants, adopting multi-currency pricing and local payment options can improve authorisation rates and enhance the overall user experience, while reducing FX-related friction and reconciliation complexity.

Strategic considerations for Hong Kong businesses entering Singapore

Hong Kong enterprises bring strong capabilities in product development, quality control, and supply chain management. Proximity and similar time zones enable fast restocking and responsive customer service, while Hong Kong’s sophisticated financial ecosystem makes it easier to connect with multi-currency collection and settlement platforms to optimise cash flow and reduce delays.

However, expansion also comes with challenges. Businesses must localise pricing, language support, and return policies to align with Singaporean consumer expectations.

In addition, understanding the regulatory landscape, including GST obligations and cross-border tax requirements can be challenging. Businesses should also account for potential operational costs, including platform fees, advertising, logistics, and currency volatility, to maintain sustainable margins.

Leading eCommerce platforms in Singapore

1. Shopee

Founded by Sea Group in 2015, Shopee is one of Southeast Asia’s most visited eCommerce platforms, serving a broad consumer base with product categories spanning fashion, electronics, beauty, and home essentials.

Key features:

• Attracts a large, predominantly young and digitally active customer base

• Built-in tools for advertisement, live selling, and Shopee Mall for verified brands

• Comprehensive logistics infrastructure with cross-border support

2. Amazon.sg

Amazon’s first entry into Southeast Asia, Amazon.sg brings global fulfilment standards and a premium shopping experience to Singapore.

Key features:

• Prime membership benefits (fast shipping, streaming, and exclusive deals)

• Sophisticated AI search and review system driving conversion

• AmazonGlobal for cross-border deliveries

3. Lazada

Lazada, part of the Alibaba Group, is a regional powerhouse offering a mix of brand-led and marketplace experiences through LazMall and its standard seller network.

Key features:

• Robust seller tools, including loyalty and live streaming features

• Integrated regional logistics and warehousing

• Strong brand presence and support for cross-border trade

4. Carousell.sg

Established in 2012, Carousell began as a Customer to Customer (C2C) platform and has since evolved to support small businesses, service providers, and even listings for vehicles and real estate.

Key features:

• Real-time messaging and price negotiation tools

• Carousell Protection ensures secure payments and transaction resolution

• CarouBiz offers enhanced visibility and tools for business sellers

Operational and regulatory insights for market entry into Singapore

Tax requirements

As of 1 January 2024, Singapore's Goods and Services Tax (GST) is set at 9%. Depending on the eCommerce platform, GST may be collected on behalf of sellers or require manual declaration. For Business to Consumer (B2C) businesses, tax-inclusive pricing is recommended to improve customer clarity and conversion.

Customs and export compliance

Exporters are required to provide accurate declarations of product details, accompanied by supporting documents such as commercial invoices, packing lists, and shipping labels. For controlled goods, prior approval from the relevant authorities must be obtained. In the case of returns or refunds, businesses have to consider implementing a clear process for reverse logistics and associated tax treatment to prevent additional customs clearance or unexpected costs.

Selecting the most suitable eCommerce platform

When selecting an eCommerce platform, begin by assessing whether its user base and product categories align with your target market. Ideally, your products should fall within high-traffic categories to benefit from organic visibility and built-in demand. 

Next, evaluate the platform’s overall cost structure – including commission fees, advertising spend, logistics, and return handling – along with the growth tools it offers, such as flagship store setup, live commerce features, and CRM capabilities.

Operational support is equally important: consider warehousing options, service-level agreements (SLAs), and policies during peak seasons. Finally, ensure the platform provides a robust payment infrastructure, including multi-currency support, local payment methods, and automated reconciliation to streamline financial operations and reduce administrative overhead.

Popular online payment methods in Singapore

• Credit cards: Preferred for higher-value and recurring transactions, supported by fraud protection features such as 3D Secure.

• Digital wallets: GrabPay and other wallets offer mobile-optimised payments ideal for fast checkouts.

• Bank transfers: PayNow and FAST provide instant local transfers which is ideal for high-value Business to Business (B2B) or domestic orders.

Key factors in selecting a cross-border collection solution

1. Supported payment methods

The platform should support a wide range of popular payment methods – credit cards, digital wallets, and local bank transfers – to accommodate different customer preferences. It should also be future-ready, allowing for easy integration of emerging channels such as buy now, pay later (BNPL). Offering the right mix of payment options enhances the checkout experience and can directly influence conversion rates across different markets. For instance, Airwallex supports 160+ local payment methods, including credit cards, GrabPay, Afterpay, and more.

2. Currency and market coverage

Look for platforms that offer multi-currency pricing and settlement to simplify cross-border operations. Displaying local currency during checkout can increase trust and authorisation rates, while settling in the same currency as your operating costs helps reduce FX losses and improve cash flow management. This is especially important when scaling into multiple regions.

3. Cost structure

Beyond basic transaction fees, businesses should factor in FX markups, withdrawal charges, and other hidden costs. A slightly higher fee structure may seem negligible at first, but as transaction volumes grow, those costs can add up and erode profit margins. Understanding the full pricing model is key to making informed financial decisions.

4. Platform security and compliance

The right payment platform should combine regulatory credibility with robust risk protection. Make sure the provider is licensed and compliant in key markets, and offers features such as encryption, 3D Secure, and fraud monitoring. These safeguards not only help protect against disputes and chargebacks but also build long-term customer trust – especially in cross-border commerce.

Comparison of eCommerce payment solutions

How Airwallex supports business expansion into Singapore

Airwallex empowers businesses to manage multi-market operations through a single global account, streamlining collections, payouts, foreign exchange, and reconciliation across regions. This unified approach simplifies cross-border financial workflows and reduces administrative complexity.

The platform supports payments from over 180 countries and offers access to over 160 local payment methods. With multi-currency pricing at checkout, businesses can improve authorisation rates and customer experience. Businesses can also perform like-for-like settlement in more than 14 currencies, avoiding unnecessary foreign exchange when revenue and settlement are in the same currency – ultimately lowering transaction costs and improving cash flow. Airwallex also provides built-in risk controls such as 3D Secure and fraud detection tools, which help reduce chargebacks and improve payment success rates.

In addition, the platform offers seamless integration with leading accounting systems such as Xero, QuickBooks, and NetSuite, enabling real-time financial data synchronisation. There are no setup fees, monthly charges, or minimum balance requirements, allowing businesses to scale with a cost-efficient and compliant financial infrastructure that supports long-term growth.

Frequently asked questions

1. What are the most widely used online payment methods in Singapore?

Credit cards, PayNow, FAST, and digital wallets such as GrabPay are among the most commonly used options.

2. What are the consideration factors when transferring funds to Singapore?

Key considerations for managing international payments include exchange rates, transfer fees, settlement speed, and transparency. Utilising a multi-currency account, such as Airwallex, is recommended to significantly reduce overall operational costs. For instance, Airwallex facilitates online store transactions with support for over 160 common payment methods and 130 currencies. Furthermore, the availability of like-for-like settlement in 14+ currencies directly contributes to reduced operating expenses.

3. How should Hong Kong merchants evaluate cross-border payment solutions?

Look for broad payment method support, multi-currency capabilities, and cost transparency. For growing businesses, an integrated platform such as Airwallex ensures scalability and operational efficiency.

Sources:

Information was obtained from the following sources as of October 2025. This information is provided for reference only. For the most up-to-date details, please visit the respective official websites.

1. https://www.paypal.com/hk/business/paypal-business-fees#statement-13

2. https://stripe.com/zh-hk/pricing/local-payment-methods

3. https://docs.stripe.com/payments/currencies/localize-prices#exchange-rate

Disclaimer: This article was prepared in October 2025 based on voluntary online research and publicly available information. We have not personally tested every tool or provider mentioned. This article is for educational purposes only, and readers should independently evaluate each service provider based on their specific business requirements. Content is updated every six months. To request an update, please contact us at [email protected].