Singapore Businesses Embrace Digital Wallets, Consumers Still Catching Up

Cross-border payments may sound simple, but their reality is anything but.

Cracking the code for sending payments between countries, whether for individuals or businesses, has taken up much of the focus of innovation across payments for at least the past few decades. As the payments ecosystem continues to evolve, digital wallets are increasingly emerging as a pivotal focal point in transforming cross-border transactions.

Data from the March 2025 “Global Money Movement: Singapore Edition,” a PYMNTS Intelligence and TerraPay collaboration, reveals that with the total value of Singapore’s international trade in services reaching nearly $750 billion in 2024, the city-state’s businesses and consumers alike are increasingly recognizing the advantages of digital wallets.

Still, the report finds there is a significant gap in familiarity between consumers (56%) and merchants (84%). Businesses are more aware of digital wallets, but consumer awareness remains limited, particularly compared to other countries.

This discrepancy suggests that while businesses are often equipped with the resources to adopt new payment technologies, consumers may lag due to limited knowledge.

The drivers behind digital wallet adoption are complex and shaped by a myriad of economic, demographic and technological factors. Yet by understanding and embracing critical areas for growth, digital wallet providers could play a pivotal role in bridging the knowledge and usage gap.

Read more: Digital Wallets Poised to Become the SMS of Global Money Movement

The Drivers of Digital Wallet Adoption in Singapore

The primary factor propelling digital wallet adoption in Singapore is speed. According to PYMNTS Intelligence, both consumers and businesses consider transaction speed the most significant motivator for adopting digital wallets. For consumers, nearly half (45%) cite speed as the main reason they would consider using digital wallets for cross-border payments within the next 12 months. Among businesses, the percentage is even higher, with 64% viewing speed as a decisive factor.

This preference for speed is not without precedent. As global trade accelerates, companies are under increased pressure to minimize payment delays and improve cash flow. Digital wallets, which provide almost instantaneous transactions, are well-suited to address these needs.

Closely tied to speed is the issue of accessibility. Digital wallets offer a user-friendly alternative to more traditional methods such as wire transfers or debit cards, which can be cumbersome and prone to delays.

More than one-third (36%) of consumers who expressed interest in adopting digital wallets mentioned the widespread acceptance of these tools as a major appeal. Unlike traditional banking systems, which often involve complex procedures for cross-border payments, digital wallets provide a streamlined experience that appeals to a digitally savvy population.

For businesses, broad acceptance of digital wallets across various markets is critical. According to the PYMNTS Intelligence data, half of the businesses not currently using digital wallets indicated they would consider adoption within the next year if these tools achieved greater acceptance across consumer and business markets.

The Role of Technological Awareness and Education

Increasing consumer awareness is also crucial to furthering adoption. As more merchants begin to offer digital wallet payments, consumer familiarity is expected to rise. Furthermore, targeted educational initiatives by financial institutions and digital wallet providers could play a pivotal role in bridging this knowledge gap.

The demographic breakdown of digital wallet usage in Singapore shows a pronounced skew toward younger generations. Generation Z and millennials are the most frequent users, with 44% and 46% respectively making cross-border payments using digital wallets. In contrast, only 30% of Generation X and just 15% of baby boomers utilize these tools.

Ultimately, the future of digital wallet adoption in Singapore will depend on how effectively stakeholders can address these underlying drivers. With the right strategies, digital wallets could become a staple of Singapore’s payments landscape, providing greater efficiency and inclusivity in an increasingly digital economy.

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