Singapore’s card payments market is set to rebound in 2021 after a decline in 2020 halted its growth rally for the past few years. card payments in the Lion City are set to grow by 10.2% in 2021, thanks to the reopening of businesses, forecasted recovery in consumer spending, and the ongoing COVID-19 vaccination program. Against this backdrop, the value of card payments is expected to register a compound annual growth rate (CAGR) of 8.2% between 2020 and 2024 and reach $96.5b (S$129.8b) in three years’ time. The increase in consumer demand for credit, especially from the growing middle-class, helped the growth of credit and charge card transactions during the review period.
The economic slowdown and the travel restrictions amidst the COVID-19 pandemic forced individuals to spend prudently, which resulted in the reduced usage of payment cards in the short-term. As a result, the value of credit and charge card payments registered a decline of 9.4% in 2020, higher compared to the 3.8% decline in debit cards. With the revival of the economy, credit card usage is expected increase. The value of credit and charge card payments is forecasted to register a compound annual growth rate (CAGR) of 8.7% between 2021 and 2024 while debit cards will grow at a CAGR of 5.3% during the same period. In terms of usage, credit and charge cards remain the most preferred card payments method in Singapore, accounting for 64.1% of the total card payments in 2020 whilst debit cards accounted for the remaining 35.9% share.