Contactless payments are here to stay: Visa

ONLY six per cent of consumers in Singapore - the lowest of all markets surveyed - would revert to pre-Covid methods of payments after a vaccine is widely available, financial services corporation Visa found in a study on the business outlook for 2021.

And nearly seven in 10 consumers in Singapore have used contactless payments whenever possible in the past three months, making it their top adjustment.

During the pandemic, the preference for more hygienic contactless payments grew, as cash payments simultaneously became less popular.

Singapore small and micro businesses (SMBs) are cognisant of this effect: More than four in five polled said that they expect consumers to prefer contactless payments, even after the availability of vaccines, and have adapted their businesses accordingly.

The study found that more than 90 per cent of Singapore SMBs have embraced new forms of digital technology, including accepting contactless payments, to meet changing consumer behaviour; this is higher than the global average of 82 per cent.

SMBs are also evaluating the importance of other payment technologies to meet consumer expectations, particularly in areas like security and fraud management, mobile payments and through "buy now, pay later" solutions, said Visa.

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They recognise the advantage of digital solutions, even as the hastened movement toward e-commerce brings about continued risks of potential fraud attacks. At 58 per cent to the global average of 47 per cent, Singapore is leading the market in the investment in security and fraud-protection solutions.

Visa has pledged to support local businesses through initiatives encouraging consumer support and digitalisation aid.

Kunal Chatterjee, country manager for Singapore and Brunei at Visa, said: "Despite SMBs doing their best to keep pace with changing preferences and the emergence of new technologies in payments and commerce, many are still dependent on community support."

The Visa "Back to Business Study" was carried out by Wakefield Research between Nov 13 and 25 last year, among the owners of 250 small businesses (defined as those with 100 employees or fewer) in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the UAE and the US.

Separately, the consumer portion of the survey was conducted over the same period among 1,000 adults in the US, and 500 adults in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore and the UAE. The data was weighted to ensure an accurate representation of adults ages 18 and up in each market.