Digital payments accounted for 26.2% of Singapore fintech market value in 2025 and are expanding at a CAGR of 16.95% through 2031.

Singapore’s digital payments segment captured 26.2% of the nation’s fintech market value in 2025, according to Mordor Intelligence, making it the largest category within a market estimated at USD 12.05 billion for that year. The segment is projected to expand at a compound annual growth rate (CAGR) of 16.95% through 2031, outpacing broader fintech growth as Singapore deepens its cashless infrastructure and regional payment links.

Market Size and Growth Trajectory

The Singapore fintech market reached an estimated USD 12.05 billion in 2025 and is expected to grow to USD 13.97 billion in 2026, with 2031 projections of USD 29.22 billion, representing a 15.9% CAGR over the 2026–2031 period, per Mordor Intelligence. Digital payments’ 16.95% CAGR through 2031 positions it as the fastest-growing service category within fintech, driven by sustained policy support, deep existing digital infrastructure, and continued private capital inflows.

The Monetary Authority of Singapore’s (MAS) SGD 100 million (USD 77 million) FSTI 3.0 program, which co-funds quantum-safe cybersecurity and AI-driven risk models, gives early adopters in payments a durable technology lead. Additional uplift is expected from Project Nexus, a five-country cross-border payments linkage initiative.

Infrastructure Drivers: SGQR+, PayNow, and SoftPOS

Three infrastructure pillars underpin digital payments growth. First, SGQR+ — the enhanced version of Singapore’s unified QR code standard — enables merchants to accept multiple payment schemes through a single QR code, lowering adoption barriers for small enterprises. Second, PayNow continues to expand its regional interoperability: it now links with Thailand’s PromptPay and Malaysia’s DuitNow, enabling instant, low-cost international transfers using mobile numbers. Third, SoftPOS (software point-of-sale) adoption allows merchants to accept contactless payments via NFC-enabled smartphones without dedicated hardware, reducing deployment costs.

Card-rail bypass via account-to-account transfers reduces interchange fees, encouraging merchants to prioritize QR and instant payment methods over traditional card networks. The Singapore Payments Network (SPaN), set to be operational by 2026, will consolidate governance over eight national payment schemes — including FAST, GIRO, PayNow, and SGQR — to boost resilience and innovation.

Adoption Rates and User Behavior

Almost 92% of Singaporeans used a digital payment method in the one year through November 2025, according to the Payments’ State of Play 2026 report by PwC and the Singapore Fintech Association. This widespread adoption is supported by high banking and smartphone penetration, alongside clear MAS regulations under the Payment Services Act that build consumer and merchant confidence.

The payments sector remains the largest fintech vertical by company count, accounting for 20.4% of all fintechs with 106 firms, according to the Singapore Fintech Report 2025. Beyond payments, wealthtech (12.7%), regtech (12.3%), and regulated crypto service providers (8.1%) emerged as the next strongest verticals, underscoring Singapore’s shift toward compliance-driven innovation and asset digitalisation.

Investment Momentum in Payments

Singapore fintech investments in the payments sector climbed to USD 475 million in the first half of 2025 — an almost eightfold increase from H2 2024, according to KPMG’s Pulse of Fintech H1 2025. This rise was anchored by mega-deals such as Airwallex’s USD 301 million raise, positioning Singapore as a regional epicentre for digital payments innovation.

Globally, the payments segment saw USD 4.6 billion in H1 2025. Singapore’s share reflects its concentrated deal activity and regulatory clarity, which the KPMG report notes allows firms to capitalise on demand for agile, interoperable payment platforms capable of navigating tariff-induced trade complexities.

Share of Market Value (%) (%)Source: Orionmano Industries

Emerging Technologies and Competitive Dynamics

Nearly 40% of Singapore fintech firms now use blockchain for payments, trading, or security, making it the most applied emerging technology, per aboveA Capital. One in three fintechs integrate AI-powered risk tools to detect fraud, assess credit risk, and enhance customer verification. Industry-wide cybersecurity spending reached USD 1.1 billion in 2025, reflecting rising threats and regulatory demands.

Digital banks continue scaling but profitability remains uneven. Trust Bank led the pack with SGD 96.9 million in total income, narrowing losses by 27% to SGD 93.3 million, a near-breakeven performance. GXS Bank recorded the steepest loss at SGD 145.4 million even as income more than doubled to SGD 29.6 million. Green Link Digital Bank stood out as income surged 447% to SGD 47.8 million while losses plunged 83% to just over SGD 5 million, suggesting early operational stability.

Stablecoins and Crypto Payments in the Ecosystem

Stablecoin-based payments gained regulatory traction in 2025. In October 2025, XSGD — the Singapore-dollar pegged stablecoin issued by StraitsX — gained wider global exposure when Coinbase listed it for trading. The launch of OKX Pay enabled Singapore customers to pay merchants in stablecoins on Grab’s payment platform; payments convert into XSGD and merchants receive Singapore dollars.

As of 2025, 36 digital payment token service providers held MAS licenses. Crypto ownership reached 29% of Singapore’s population, with Gen Z leading at 40% and millennials at 39%. However, tighter regulations — including a suite of DTSP-specific MAS notices launched in May 2025 — require firms serving only overseas customers to exit the market by June 2025, with no grace period.

Outlook

Digital payments in Singapore benefit from a confluence of policy support, infrastructure maturation, and private capital concentration that few APAC hubs match. MAS’s real-time settlement frameworks, cross-border licensing alignment, and open banking APIs accelerate product rollouts without fragmented compliance burdens. As the Singapore Payments Network consolidates governance and Project Nexus expands regional interoperability, the 16.95% CAGR trajectory appears achievable — barring unforeseen regulatory tightening or global macroeconomic disruption that could temper investment flows.