Singapore is one of the leading countries in the prepaid card segment in Southeast Asia. With increased mobile penetration, the country became one of the early adopters of the digital payment system. Moreover, the country’s strong banking system drives the overall payment infrastructure. In recent years, many global companies have launched their services in the country.
Additionally, the rising market attractiveness also created growth avenues for fintech companies in the country. The government-backed digital payment system has emerged as one of the key factors for the prepaid card market growth. According to PayNXT360, the growing acceptance of digital gift cards across all sectors such as transportation, hospitality, and e-commerce is expected to drive market growth over the next two to three quarters.
In Singapore, companies are launching QR code-based gift cards to increase market share:
The contactless payment system gained momentum during the ongoing pandemic in Singapore. Consumers have been avoiding physical contact with currencies to be safe. The trend was also noticed in the gift card segment. Moreover, consumers have widely accepted QR-code-based gift cards. This was primarily due to its convenient payment infrastructure. QR-based gift cards have not only helped consumers to go for contact-less gifting but also offered a simple payment technique. As the technology allowed consumers to use the card just by scanning the code and avoid the lengthy process of typing or keeping it safe, the demand for QR-based gift cards is increasing significantly. The trend also helped financial institutions to offer QR code-based gift cards in the country. For instance,
In January 2021, DBS started rolled out its DBS QR gift cards through mails. During the Chinese New Year, the demand for gift cards usually increases, and the new service from the bank helped Singaporean consumers to avoid going out. DBS launched its QR gift cards (also known as QR Ang Bao) in 2019.
Fintech companies are expanding their reach to target a larger market:
Singapore is one of the key financial hubs in the Asia-Pacific region. The financial market is well developed, and with the presence of global brands and fintech companies, the market has become more competitive. Moreover, as the country’s financial sector is getting saturated, fintech companies are targeting other markets to expand their businesses. This trend is also visible in the prepaid card segment. Fintech startups are building partnerships with key financial institutes overseas to offer their technology and service in this segment. For instance,
In January 2021, Singapore-based fintech startup StashFin built a strategic partnership with SBM Bank India to launch contactless prepaid cards in India. The new co-branded prepaid card is targeting the large underbanked Indian population. According to the company, this new Visa prepaid card comes with an EMV chip which provides better safety and security. Moreover, consumers can also use this card at ATMs for an overdraft facility. The card allows consumers to take a loan up to $ 9,000 (Rs 5 Lakh) as an overdraft. Additionally, this card can be used to make any online and offline transactions, and users can convert this amount to an easy EMI option.