Top alternative payment methods in Singapore (2026): a complete guide on how to expand your payment options

Key takeaways:

• Alternative payment methods (APMs) are non‑cash, non‑card ways to pay, such as digital wallets and bank transfers. These are now a standard part of how customers pay online.

• Relying only on traditional payment methods can hurt conversion, especially when your customers have strong preferences for specific local payment methods in each market.

• Airwallex Payments helps you offer alternative payment methods from a single platform, with a multi-currency gateway that supports 160+ local payment methods.

If you sell to customers in Singapore today, cards alone are rarely enough. Shoppers expect to see familiar digital wallets and other payment methods they trust at checkout, and they may abandon their purchase if you don’t offer their preferred payment method.

The right mix of alternative payment methods can lift checkout conversion, reduce payment-related drop‑offs, and make it easier to expand into new markets. Airwallex helps you centralise this with a single gateway that supports 160+ local payment methods, global online payments, and multi-currency settlement on one platform.

What are alternative payment methods (APMs)?

Alternative payment methods are ways to pay outside of core payment options like cash, cheques, and Visa/Mastercard. They include digital wallets, instant bank transfers, direct debits, buy now pay later (BNPL) plans, and prepaid vouchers.

In many markets, local payment methods now dominate online checkout. Customers expect to see those same options wherever they shop, even when they’re buying from overseas brands. 

5 Types of alternative payment methods

Here are the five main types of alternative payment methods you’ll see in Singapore, and how they work for your business.

1. Digital wallets

Digital wallets (or mobile wallets) let customers store card details or balances in an app and pay with a tap or a few clicks. In Singapore, examples include GrabPay, Apple Pay, Google Pay, and WeChat Pay. 

Customers can use these digital wallets for both online payments and in-store checkout. With these payment methods, customers don’t have to re‑enter their card details every time they shop online. 

2. Bank transfers

Modern bank transfers let customers pay straight from their bank account through a fast, redirect-style flow. In Singapore, PayNow is a common example. These alternative payment methods process payments in real time and provide instant confirmations, which reduces failed payment transactions and support costs. 

3. Direct debit payments 

Direct debit payments let you collect money from your customer's bank account on a fixed schedule. In Singapore, the most common direct debit payment scheme is GIRO.

Direct debit payments are widely used for subscriptions, memberships, and other recurring payment transactions. Because it’s automated, it improves cash flow and reduces missed invoices. 

4. Buy now, pay later (BNPL)

BNPL is an alternative payment option where the BNPL provider pays your business the full amount first, and customers then repay the provider in instalments. Common providers in Singapore include Atome, Klarna, and Afterpay.

BNPL lowers the upfront cost for customers, so it helps to lift conversions, especially for higher-ticket orders. It's a preferred payment method for younger shoppers, so many businesses are now choosing to offer BNPL alongside other payment methods.

5. Prepaid cards and vouchers

Prepaid cards and vouchers, such as gift cards, hold a fixed stored value that customers can spend. They let consumers pay for their purchases without linking to a full bank account or traditional card.

Popular alternative payment methods around the world

Payment habits look very different from country to country. Here’s a look at the popular payment methods across the world. 

Singapore

In Singapore, cards are still important, but digital wallets and instant bank transfers are highly popular as well. Shoppers commonly use PayNow, GrabPay, and wallets like Apple Pay and Google Pay for online payments and in‑store checkout.

Malaysia

In Malaysia, many online payments run through FPX, an instant bank transfer system that connects directly to local banks. Wallets such as Touch ’n Go eWallet and GrabPay are also widely used for eCommerce and in‑store spend.

China

China is one of the clearest examples of alternative payment methods becoming the default. AliPay and WeChat Pay handle most everyday payment transactions, from small purchases to larger online orders.

Hong Kong

In Hong Kong, card schemes like Visa still play a big role, but digital wallets are growing quickly. Many shoppers pay with contactless cards, AlipayHK, WeChat Pay, and other wallets at both physical and online checkouts.

India

In India, United Payments Interface (UPI) has become a key payment method. It uses real‑time bank transfers that customers trigger from their banking app or a UPI app, often by scanning a QR code. 

Australia

Digital wallets are growing quickly in Australia: the market was worth about US$4.8 billion in 2025 and is projected to reach around US$30.1 billion by 2034.¹ Many shoppers now use Apple Pay, Google Pay, or bank wallets instead of physical cards. 

Europe

Across Europe, payment methods vary by country. In the Netherlands, for example, many online shoppers prefer to pay by iDEAL, a local bank transfer scheme, rather than cards. In markets like Germany, PayPal is a dominant APM for online payments.

Merchants expanding into Europe usually need a combination of Single Euro Payments Area (SEPA) direct debit payments, local bank transfers, and wallets or BNPL providers like Klarna, depending on the country.

America

In America, cards are still popular, but PayPal, Apple Pay, and Cash App Pay are common alternative payment methods at checkout. Many customers store cards in these wallets and prefer the convenience of using digital wallets. 

Middle East and North Africa

In the Middle East and North Africa, people still use a mix of cash and cards, but digital payments are growing fast. In markets like Saudi Arabia and the UAE, local wallets and payment systems such as mada, STC Pay, and PayBy are becoming more common for eCommerce, alongside regional gateways like Fawry in Egypt. 

Why offer alternative payment methods: 4 key benefits

Adding the right mix of alternative payment methods helps you convert more customers, lower transaction costs, and support business growth. Here are four key benefits of offering APMs.

1. Higher checkout conversion

When customers see payment methods they already use, the purchase experience feels straightforward and low‑risk. As a result, customers are more likely to complete their purchase. 

Conversely, data shows that 77% of consumers are likely to abandon a cart if their preferred payment method isn’t available.

2. Access to more customers in each market

In some countries, alternative payment methods are now the norm. For example, PayPal handles a large share of online payments in markets like Germany, while AliPay and WeChat Pay dominate everyday spend in China. By supporting local payment methods, you reach more international customers from these markets. 

3. Lower processing costs

Cards are convenient, but they aren't always the cheapest way to accept payment transactions. In some regions, APMs such as account‑to‑account bank transfers or direct debit payments come with lower processing costs and less chargeback risks than card rails.

4. Smoother operations and cash flow

Modern APMs often process payments in real time and send instant confirmations. That means fewer failed payment transactions, fewer support tickets, and clearer visibility over your cash flow.

How to choose the best alternative payment options for your business

Once you know which alternative payment methods your customers use, the next step is to decide which ones to add to your payment method mix. Here’s how to narrow things down.

Understand your customers and markets

Start by looking at who you sell to and where they are based. Then list the alternative payment methods that are common in those markets.

For example, your mix might be cards plus PayNow in Singapore, GrabPay and DuitNow in Malaysia, or AliPay and WeChat Pay in China. The goal is to end up with a short list of two to three payment methods per market, instead of a long wishlist that’s not feasible to implement. 

Compare costs and margins

For each method, look at the full cost, including transaction fees, FX markups, and any extra charges your provider adds. Some APMs, especially account‑to‑account bank transfers or direct debit options, offer lower processing costs than cards.

Check operational fit and cash flow

Think about how each method fits into your day‑to‑day payment process. Check how quickly funds settle, which currencies you receive, and whether you’ll need another bank account to handle those payouts. 

Look at data, integrations, and risk

Choose a provider that fits cleanly into your finance stack. It should be easy to sync payment records to your accounting tools, see how each payment method is performing, and spot issues quickly. You’ll also want clear controls for fraud, disputes, and refunds.

Choose a partner that can scale with you

Wherever possible, avoid managing separate integrations for every wallet or local method – that gets messy fast. Instead, look for a single provider that supports your key payment methods and settles funds into the same bank account or multi‑currency wallet. 

For example, Airwallex lets you accept 160+ local payment methods through a single integration, settle into multi-currency accounts, and manage everything from one place. This simplifies reporting and reconciliation and reduces operational complexity. 

Boost checkout conversion and customer satisfaction with Airwallex

When you sell in multiple markets, it’s hard to keep up with all the local payment preferences. Many businesses end up with different payment service providers (PSPs) in each country, with separate dashboards and payouts landing in different places. This makes it harder to see what’s working and where your money is going.

Airwallex helps you simplify this. With one integration, you can accept cards and 160+ local payment methods across 180+ countries, including wallets like Apple Pay, Google Pay, AliPay, WeChat Pay, and regional options such as PayNow, GrabPay and Atome.  

All of these payment methods settle into your Airwallex multi‑currency wallet, so you can collect in different currencies and hold, convert, or pay out when it suits your cash flow. That means less forced FX, fewer surprise fees, and simpler reconciliation.

Because Airwallex is an end‑to‑end financial platform, payments don’t sit in a silo. The money you collect through your online payment gateway flows straight into your Global Accounts, and the same balance can then be used across Corporate Cards, Expense Management and Bill Pay, before everything is synced into your accounting tools. That gives you a single view of online payments, card spend, and bank transfers, and makes it easy to see how each payment method is affecting revenue and margins.

For your customers, the impact is simple but powerful: they see familiar payment options at checkout, in their own currency, and they can pay with methods they trust. For your team, this translates into higher conversion, fewer failed payments, and less time managing separate systems.

Frequently asked questions (FAQs)

What kind of business needs alternative payment methods?

Any business that sells online or across borders can benefit from alternative payment methods. If your customers are in different countries, shop mostly on mobile, or often ask for wallets or local payment methods, it’s a sign you should offer more than just cards and cash.

To learn more about payment methods (both traditional and alternative), check out our top payment methods guide. 

What are the merchant fees on alternative payment methods?

Fees vary by method and provider. Some options, such as account‑to‑account bank transfers or direct debit, can have lower processing costs than cards, while others (for example, BNPL) may cost more but convert better. Compare the full picture, including transaction fees, FX, chargebacks, and any extra gateway costs, before you decide what to use.

Are alternative payment methods secure?

Yes, most major APMs use strong security tools such as tokenisation, multi‑factor checks, and built‑in fraud controls.

As with any payment methods, there are payment risks. Choose a provider that follows strict standards (for example, PCI DSS) and offers good fraud monitoring to keep risks low. 

What are the disadvantages of alternative payment methods?

The main disadvantages of alternative payment methods are complexity and overhead. Each new APM adds more moving parts: extra reporting, new refund flows, and sometimes new settlement rules or currencies. If you add too many payment options without a clear plan, it may make your operations harder without having a positive impact on conversions. 

How do I integrate local payment methods?

You can sign up with each local PSP and integrate them one by one, or you can use a single platform like Airwallex that lets you accept 160+ local payment methods through one connection and settle into the same multi‑currency wallet. Here is the full list of payment methods that you can enable through Airwallex.

Sources:

1. https://www.imarcgroup.com/australia-e-wallet-market 

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.