Payment methods in Singapore (2026): A complete guide for businesses

Key takeaways:

• Singapore has some of the highest digital payment adoption in Southeast Asia, with 92% of consumers using digital payment methods as of 2025.¹ Cash use at point of sale is expected to drop to just 7% by 2027.²

• Offering more payment methods isn't always better. The right mix depends on your customers' preferences, your business model, and your cost structure.

• Airwallex supports 160+ local payment methods across 180+ countries, so you can accept the right options in Singapore and scale into new markets from one platform.

Singapore businesses now operate in one of the most cashless markets in Southeast Asia.

With 92% of consumers using digital payment methods¹ and cash at the point of sale expected to fall to just 7% by 2027,² getting your payment mix right has a direct impact on conversion, costs, and customer experience.

This guide covers every major payment method available to Singapore merchants, with a comparison table, setup requirements, and practical guidance on how to choose.

If you sell to customers outside Singapore and need to understand which payment methods dominate in other markets, see our guide to alternative payment methods for cross-border businesses.

4 benefits of offering the right payment methods

Your payment mix affects your revenue, customer retention, and how efficiently your business runs. Here are the benefits of offering the right payment methods:

1. Higher checkout conversion

Our research shows that 77% of consumers are likely to abandon a cart if their preferred payment method isn't available.³

In Singapore, that means offering PayNow and at least one wallet alongside cards, not just a card form and hoping for the best.

2. Reach more customers

Different customer segments have strong preferences.

Younger shoppers lean heavily on wallets and PayNow: nearly 70% of Gen Z consumers in Singapore prefer PayNow for everyday payments.⁴ Older demographics are more likely to use cards or bank transfers.

A broader payment mix means fewer customers hit a dead end at checkout.

3. Lower payment processing costs

Card payments carry interchange fees, FX markups on foreign cards, and chargeback risk. QR code payments via PayNow and direct bank transfers typically have lower per-transaction costs and no chargeback exposure.

For high-volume merchants, shifting some volume to lower-cost methods can have a meaningful impact on margins. For a detailed comparison of payment gateway fees in Singapore, see our guide to payment gateway providers.

4. Improved cash flow

PayNow, FAST, and most digital wallets settle faster than traditional card networks. Instant or same-day settlement gives you cleaner visibility over working capital and reduces the gap between making a sale and having funds available to use.

6 popular payment methods in Singapore in 2026

Here is how the six most widely used payment methods in Singapore compare across the factors that matter most to merchants:

This information is based on publicly available information accessed on 4 Aug 2026. Information reflects Airwallex's own research and has not been independently verified.

1. Credit and debit cards

Cards remain the most widely used payment method in Singapore, accounting for around 44% of eCommerce transaction value.⁵ They are accepted by virtually every merchant and work across online, in-store, and mobile commerce without additional setup for most businesses.

Best for: Any Singapore merchant. Cards are a baseline requirement.

Things to consider:

• Transaction fees are higher than most APMs, typically 1.5–3.5% per transaction depending on card type and provider

• Chargeback risk is real. Ensure your payment provider has clear dispute management tools.

• Foreign cards trigger FX conversion fees; look for a provider that offers like-for-like settlement to avoid forced conversion.

To accept cards you typically need a merchant account, payment gateway, and either a card reader terminal for in-person payments or an online checkout integration.

2. Digital wallets

Digital wallets let customers store card details or a prepaid balance in an app and pay with a tap or a few clicks, without re-entering card details at checkout. They are particularly popular among younger and mobile-first shoppers.

The most widely used wallets in Singapore include Apple Pay, Google Pay, GrabPay, ShopeePay, DBS PayLah!, and Samsung Pay.

Best for: Merchants targeting Gen Z and millennials; businesses that want fast contactless in-store payments.

Things to consider:

• You may need to support several wallets to cover different customer preferences: GrabPay and ShopeePay skew younger and eCommerce-heavy, while Apple Pay and Google Pay are broader.

• Requires an NFC-enabled contactless card reader for in-store acceptance

• Settlement is typically 1–3 days, faster than cards but slower than PayNow

3. QR code payments (e.g. PayNow)

QR code payments let customers scan a code with their mobile device and pay via a linked card, wallet, or bank account.

Singapore's SGQR system consolidates multiple payment methods into a single QR code. As of 2023, SGQR+ allows merchants to accept up to 23 payment methods through a single participating institution.

PayNow is the dominant QR payment method in Singapore, used by nearly 70% of Gen Z consumers⁴ and widely adopted across age groups for both personal and business transfers. For more detail on setup, see our guide to PayNow QR codes.

Best for: Restaurants, pop-up shops, and any in-person merchant wanting a simple, low-cost setup.

Things to consider:

• PayNow settles instantly with no chargeback risk; it’s one of the lowest-cost options for in-person payments

• Primarily suited to in-person payments; less practical as a standalone online checkout option

• Processing fees vary depending on the underlying payment method the customer chooses at scan

4. Bank transfers (e.g. FAST)

Bank transfers allow customers to send funds directly from their bank account to yours. The main systems in Singapore are FAST, which powers PayNow and operates 24/7 with near-instant settlement, and MEPS, used for high-value or time-sensitive business transfers.

Best for: B2B merchants processing large invoices or retainers, and any business that wants instant settlement without chargeback exposure. See our B2B payments guide for more.

Things to consider:

• No native refund or dispute mechanism: if something goes wrong, resolution depends on both banks cooperating.

• Customers must initiate each transfer manually, which can create friction for repeat purchases.

• Well-suited to high-value invoices where chargeback risk is a concern and the customer relationship is established.

5. Buy now, pay later (BNPL)

BNPL lets customers split a purchase into instalments, with the provider paying your business the full amount upfront. There are approximately 2.4 million BNPL users in Singapore,⁶ most of them aged 18–34.

Main providers include Atome (three interest-free payments), Grab PayLater, Klarna (instalment options vary by market), and Affirm (available to Singapore merchants selling to US customers via Airwallex).

Best for: Retailers and eCommerce merchants selling higher-ticket goods to younger shoppers.

Things to consider:

• Fees are the highest of any payment method, typically 4–6% per transaction⁷

• Settlement takes 3–4 days, slower than most other methods

• Works best when average order value is high enough that the instalment option meaningfully changes a customer's decision to buy

6. Autopay (e.g. GIRO)

Autopay allows your business to automatically debit a customer's bank account for recurring payments on a set schedule.

In Singapore, the main scheme is GIRO, available as Direct Debit (automatic on scheduled dates) or GIRO-On-Demand (customer approves each payment individually).

Best for: Subscription businesses, membership services, and any model with regular recurring billing.

Things to consider:

• Payments fail silently if the customer has insufficient funds. Build in automated retry logic and failure notifications.

• Requires upfront customer authorisation, which adds a step to your onboarding flow

• Settlement takes 1–5 days; plan your cash flow accordingly if you are running tight working capital cycles

How to choose the right payment methods for your business

The right payment mix depends on who your customers are, how your business operates, and what it costs to accept each method. Here are the four most important factors:

Understand your customer's preferences

Payment preferences in Singapore vary significantly by age, channel, and purchase type. Younger shoppers lean on wallets and PayNow; older demographics are more likely to use cards or bank transfers; subscription customers need autopay.

If you sell to international customers as well, factor in their local preferences: for a market-by-market breakdown, see our guide to alternative payment methods.

Useful ways to identify preferences: run a short customer survey, analyse your abandoned cart data by payment step, or review what your closest competitors accept.

Match payment methods to your business model

Different business models have different requirements:

• Online stores need a frictionless checkout: cards and wallets are the default, with PayNow worth adding for Singapore shoppers

• In-person businesses need instant confirmation: cards, wallets, and QR code payments all work well

• Subscription businesses need autopay via GIRO or a card-on-file recurring billing setup

• High-value or B2B merchants benefit from bank transfers for large invoices, where chargeback risk is a concern and payment amounts make card fees significant

• Retailers selling higher-ticket goods should consider BNPL to reduce the upfront cost barrier for price-sensitive shoppers

Compare fees and total cost

Processing fees vary widely by method and provider.

When comparing options, look beyond the headline transaction rate and account for FX conversion fees on foreign cards, chargeback handling costs, settlement timing and its impact on working capital, and any setup or monthly fees.

For a detailed comparison of providers in Singapore, see our payment gateway guide.

Check security, integration, and scalability

Your payment methods need to work cleanly with your existing systems: eCommerce platform, accounting software, and any POS or inventory tools.

Make sure you verify three things before committing to a provider:

• That it meets PCI DSS standards

• That it integrates with your stack without custom development

• That it can support additional markets or methods if your business grows

Managing multiple providers across multiple markets gets complex quickly — a single platform that handles both local Singapore methods and international APMs simplifies reporting, reconciliation, and FX management considerably.

Accept 160+ local payment methods with Airwallex

Airwallex helps you accept the payment methods customers expect in Singapore while giving you the flexibility to expand into new markets from the same platform. Here’s what you get with Airwallex:

• Accept all major Singapore payment methods. Offer PayNow, GrabPay, ShopeePay, Apple Pay, Google Pay, cards, and BNPL through a single integration. Airwallex also supports 160+ local payment methods across 180+ countries, so you can scale internationally without adding new providers.

• Expand globally without changing providers. Accept local payment methods like Alipay, iDEAL, and Wero alongside Singapore favourites, all through the same checkout and merchant account.

• Settle in 14 currencies. Receive payments in supported currencies without automatic conversion, so you decide when to exchange funds.

• Manage everything in one place. Payments flow into your Airwallex Global Account, where you can reconcile transactions, pay suppliers, and sync with accounting platforms like Xero and NetSuite.

Frequently asked questions (FAQs)

What are the most popular payment methods in Singapore?

The most widely used payment methods in Singapore are credit and debit cards, PayNow, digital wallets (Apple Pay, Google Pay, GrabPay, ShopeePay, DBS PayLah!), BNPL services (Atome, Grab PayLater), and GIRO for recurring payments. Cards and PayNow together cover the majority of transactions across age groups and purchase types.

What are the most popular digital wallets in Singapore?

At a minimum, accept cards and PayNow; these two cover most Singapore shoppers. Adding one or two wallets (GrabPay and Apple Pay or Google Pay) extends your reach with younger and mobile-first customers. If you sell higher-ticket goods, consider adding a BNPL option like Atome. Start with those before adding anything else.

What is SGQR+ and do I need it?

SGQR+ is an upgrade to Singapore's unified QR code standard, introduced by MAS in 2023, that allows merchants to accept up to 23 payment methods through a single participating institution. If you accept QR code payments in-store, SGQR+ simplifies your setup significantly: one code, one provider relationship, and customers can pay with whichever supported method they prefer. Most payment providers in Singapore now support SGQR+ by default.

What is the most secure payment method in Singapore?

Bank transfers via FAST and PayNow are highly secure; funds move directly between verified bank accounts with no card data involved. Cards with 3D Secure authentication are also low-risk for merchants, as they require identity verification at checkout. For recurring billing, GIRO operates within MAS-regulated banking infrastructure and carries low fraud risk. Whichever method you use, ensure your provider meets PCI DSS standards.

Should I use Airwallex or a local Singapore payment provider?

It depends on your business scope. Local providers work well if you only sell in Singapore and don't need multi-currency settlement or international payment methods. If you sell internationally (or plan to), Airwallex gives you full Singapore payment method support alongside 160+ local payment methods across 180+ countries, multi-currency settlement in 14 currencies, and competitive FX rates, all from one platform.

How do I set up payment methods for my business?

Setup requirements vary by method. Cards and wallets typically involve signing up with a payment provider and integrating their checkout into your website or POS. PayNow requires a business bank account registered for PayNow and a provider that generates SGQR codes. BNPL requires a direct relationship with each provider. GIRO requires customer authorisation forms submitted through your bank. Using a platform like Airwallex that supports multiple methods through one integration reduces the setup overhead considerably.

How much does it cost to accept payments in Singapore?

Costs vary significantly by method and provider. Cards typically cost 1.5–3.5% per transaction; BNPL runs 4–6%; PayNow and bank transfers are generally the lowest-cost options. Beyond transaction fees, factor in any monthly platform fees, FX conversion costs on foreign currency payments, and chargeback handling fees. For a full breakdown, see our guide to payment gateway providers in Singapore.

Sources:

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

2. https://asianbankingandfinance.net/news/singapores-cash-use-in-pos-fall-just-7-2027-study

3. https://www.airwallex.com/ecommerce-campaign-2024

4. https://www.xero.com/sg/media-releases/digital-payment-trends-singapore-gen-z-leading-shift/

5. https://treasurytoday.com/press-releases/press-release-worldpay-now-global-payments-releases-global-payments-report-2026-digital-wallets-qr-adoption-real-time-payments-and-a2a-growth/

6. https://www.statista.com/statistics/1305667/sea-number-of-bnpl-users-by-country/

7. https://www.chargeflow.io/blog/buy-now-pay-later-statistics