While the government and various financial institutions have been encouraging the use of digital payments before the Covid-19 pandemic, adoption of digital payments — more specifically, contactless payment methods have really taken off for businesses and consumers during the course of the pandemic.
Singapore’s financial regulator, MAS, promoting greater adoption of digital finance and e-payments to support Covid-19 Safe Distancing Measures
To minimise physical contact, many businesses are encouraging the use of contactless payment methods. And some businesses are only accepting cashless payments.
With the Covid-19 pandemic, the MAS is promoting greater adoption of digital financial services and e-payments among businesses and individuals.
Broader digitisation push supports digital payments becoming mainstream
The Singapore government has set aside more than S$500m (US$365m) in the Fortitude Budget to help Singaporeans and local businesses manage the pandemic fallout through digital transformation.
With stronger backing from the government and businesses, digital payments are becoming mainstream; and cash payments on the decline. Already, between 2016 to 2019, ATM cash withdrawals have fallen steadily each year.
Consumers’ growing trust towards digital payment methods
For many consumers, the pandemic is giving them a push to finally try digital payments. And with security advances in digital payment methods, consumers are no longer as worried about the security around these payment modes. Mobile payments and contactless credit cards, for example, don’t transmit card number or three-digit security code details unlike magnetic-stripe cards.
Three in four Singaporeans say they don’t feel at risk when making mobile payments. Instead, consumers are more concerned about the possibilities of losing their smartphones or getting hacked.
Digital payments are here to stay – and will very likely be the future of in-person financial transactions in Singapore even following the end of the COVID-19 pandemic, when all social distancing guidelines are removed.
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