Digital payments accounted for 26.20% of the Singapore fintech market in 2025, expanding at a CAGR of 16.95% to 2031.

Market Context and Share

Digital payments represented 26.20% of Singapore's total fintech market in 2025, making it the largest service segment by market share, according to Mordor Intelligence. The broader Singapore fintech market was valued at USD 12.05 billion in 2025, growing to an estimated USD 13.97 billion in 2026, with projections reaching USD 29.22 billion by 2031—a compound annual growth rate (CAGR) of 15.9% over 2026–2031.

The digital payments segment is forecast to expand at a 16.95% CAGR between 2026 and 2031, outpacing the overall fintech market growth. This trajectory positions digital payments to increase its share of total fintech revenue in the coming years, driven by structural shifts in merchant acceptance, cross-border interoperability, and consumer behaviour.

Infrastructure Drivers: SGQR+ and PayNow

Two infrastructure initiatives underpin the segment's expansion. SGQR+, the enhanced unified QR payment standard, consolidates multiple payment schemes into a single merchant-displayed QR code. Merchant adoption of SoftPOS (software-based point-of-sale) terminals has accelerated, enabling smartphone-based acceptance without dedicated hardware. This lowers the barrier to entry for small merchants and hawkers, expanding the addressable market for digital payments.

PayNow, Singapore's real-time peer-to-peer funds transfer system, has deepened its regional linkages. Connections with Thailand's PromptPay and Malaysia's DuitNow enable instant cross-border account-to-account transfers. These links reduce reliance on card rails for regional transactions, lowering interchange fees and encouraging merchants to prioritise QR and instant payment methods. The Monetary Authority of Singapore (MAS) has signalled further interoperability through Project Nexus, a five-country fast payment system integration initiative.

The shift from card rails to account-to-account transfers is a structural driver: merchants benefit from reduced transaction costs, while consumers gain speed and convenience. Industry estimates suggest that interchange fees on card transactions average 1–2% of transaction value; PayNow-based transfers typically cost a fraction of that, accelerating adoption among cost-sensitive business users.

Transaction Value (USD B)Source: Orionmano Industries

The chart above shows the trajectory of digital payments transaction value, with 2023 as the base year and 2030 projections from the PwC/SFA report. The 2026 figure is interpolated based on reported CAGR.

Investment Landscape

Singapore's payments sector attracted more than USD 319 million in funding during the first nine months of 2025, according to the Payments' State of Play 2026 report by the Singapore FinTech Association (SFA) and PwC. This amount exceeded the combined payments funding secured by Indonesia, Malaysia, the Philippines, Thailand, and Vietnam over the same period, underscoring Singapore's regional dominance in payments investment.

Singdollar-pegged stablecoins have emerged as a significant component of digital payments infrastructure. These stablecoins commanded over 70% of Southeast Asian transaction volumes in Q2 2025, reflecting growing institutional and retail adoption. Regulated stablecoins such as XSGD have gained traction, supported by transparent attestations and listings on global exchanges.

Competitive Dynamics and End-User Trends

The digital payments segment remains highly competitive, with established players including MatchMove Pay alongside global payment processors. Business users, particularly SMEs, are a key growth vertical: the SME segment across fintech services is expected to grow at an 8.55% CAGR through 2031, driven by alternative lending and real-time payments adoption.

Retail users continue to drive transaction volumes, with Gen Z and millennial consumers leading the shift toward cashless payments. High smartphone penetration, ubiquitous banking access, and MAS's trust-building regulatory framework create favourable conditions for sustained adoption. Cards remain dominant at point-of-sale, while FAST and PayNow power interbank account-to-account transfers for higher-value transactions.

Broader Fintech Ecosystem

While digital payments lead in scale, other fintech subsegments are developing in parallel. Digital lending platforms are deploying alternative credit scoring to unlock quick-turnaround microloans for gig workers, though at a slower growth rate than payments. Insurtech firms embed bite-sized coverage within ride-hailing and delivery apps, expanding distribution without requiring stand-alone policy purchases. Wealth-tech platforms such as StashAway scale on low-cost, automated portfolio management.

The MAS FSTI 3.0 program—allocating SGD 100 million (USD 77 million)—co-funds quantum-safe cybersecurity and AI-driven risk models, providing early adopters with a technology edge. The regulatory sandbox framework continues to facilitate experimentation, particularly for firms deploying AI-based fraud detection and blockchain-based settlement.

Outlook

Digital payments transaction value in Singapore is projected to reach USD 113.7 billion by 2030, up from USD 39.4 billion in 2023. Beyond volume growth, adoption will be driven by enhanced fraud detection using AI, deeper cross-border interoperability, and the expansion of tokenised deposits and regulated stablecoins. Scam-related losses of approximately SGD 840 million in the first 11 months of 2025 underscore the importance of trust infrastructure; MAS and industry participants are prioritising shared-responsibility frameworks for fraud mitigation.

The segment's 16.95% CAGR through 2031—the highest among Singapore fintech service categories—will sustain digital payments' position as the dominant fintech vertical. However, competitive intensity, regulatory scrutiny, and the need for continuous investment in security and interoperability will shape the pace and distribution of growth.