SGQR+ interoperability, SoftPOS adoption, and PayNow regional links drive expansion as segment outpaces broader fintech growth.

Market Context: Singapore’s Fintech Landscape in 2025

Singapore’s fintech market reached USD 12.05 billion in 2025, with digital payments commanding a 26.20% share—implying a segment value of approximately USD 3.16 billion. The overall market is projected to grow to USD 13.97 billion in 2026 and reach USD 29.22 billion by 2031, representing a compound annual growth rate (CAGR) of 15.9% over 2026–2031, according to Mordor Intelligence and Research and Markets. Digital payments are expanding at a faster clip: a 16.95% CAGR through 2031, outpacing lending, insurtech, and wealth-tech verticals. This growth trajectory positions the segment to reach approximately USD 8.1 billion by 2031, cementing Singapore’s role as ASEAN’s leading payments hub.

The Monetary Authority of Singapore’s (MAS) USD 77 million (SGD 100 million) FSTI 3.0 program—which co-funds quantum-safe cybersecurity and AI-driven risk models—provides early adopters with a durable technology lead. Project Nexus, a five-country initiative connecting Singapore’s real-time payment system with those of other ASEAN nations, adds infrastructural momentum.

Why Digital Payments Outpace Other Segments

Three structural catalysts distinguish digital payments from fintech peers. First, SGQR+ interoperability enables merchants to accept multiple payment schemes through a single QR code, reducing integration costs and accelerating merchant adoption. Second, SoftPOS (software-based point-of-sale) adoption allows merchants to turn NFC-enabled smartphones into payment terminals, lowering hardware barriers for small and micro merchants. Third, PayNow’s regional links extend instant account-to-account transfers across borders, bypassing traditional card rails and reducing interchange fees.

The account-to-account model—where funds move directly between bank accounts rather than through card networks—is a key driver. By avoiding interchange fees, these transfers encourage merchants to prioritize QR and instant payment acceptance over card-based transactions. According to the Singapore FinTech Association and PwC’s State of Play 2026 report, Singdollar-pegged stablecoins dominated over 70% of Southeast Asian transaction volumes in Q2 2025, further embedding blockchain-based settlement into the payments stack.

Investment flows confirm the segment’s dominance. Singapore’s payments sector raised more than USD 319 million in the first nine months of 2025, exceeding the combined funding secured by Indonesia, Malaysia, the Philippines, Thailand, and Vietnam over the same period, per the SFA-PwC report.

By contrast, alternative credit scoring in digital lending unlocks quick-turnaround microloans for gig workers but grows at a slower rate. Insurtech firms embed bite-sized coverage within ride-hailing and delivery apps, widening reach without requiring standalone policy purchases. Wealth-tech platforms such as StashAway scale on low-cost robo-advisory models, yet none match digital payments’ adoption base or funding intensity.

Value (USD billion) (USD billion)Source: Orionmano Industries

Adoption and Infrastructure: Near-Universal Cashless Habits

Adoption metrics confirm Singapore as one of the world’s most digitally-embedded payments markets. In 2025, 92% of Singapore residents use digital payments daily, while 98% of adults use digital wallets, according to the SFA-PwC report. The Fast And Secure Transfers (FAST) system processed over 500 million transactions in 2024, a 31% year-on-year increase.

Card payments remain a substantial component of the payments mix. GlobalData reports that Singapore’s card payment value reached SGD 158.2 billion (approximately USD 119.6 billion) in 2025, growing 6.2% year-on-year, driven by increased consumer spending, e-commerce expansion, and wider contactless acceptance. GlobalData projects card payments to reach SGD 209.2 billion (USD 158.3 billion) by 2029, supported by near-universal bank access and expanding merchant acceptance, including hawker centres and small merchants.

Policy infrastructure reinforces these trends. Beyond FSTI 3.0, MAS has introduced real-time settlement frameworks for digital payments, cross-border licensing alignment, and open banking APIs that accelerate innovation. The regulatory sandbox remains active, enabling controlled experimentation. AboveA Capital notes that these measures offer regulatory clarity few APAC hubs match, reducing operational risks for fintech entrants and enabling faster regional scaling.

Outlook: 16.95% CAGR to 2031 and Beyond

Assuming a 16.95% CAGR from the 2025 base of USD 3.16 billion, the digital payments segment is projected to reach approximately USD 8.1 billion by 2031—nearly 2.6x its current size. This trajectory outpaces the broader fintech market’s 15.9% CAGR, reflecting digital payments’ structural advantages in adoption, infrastructure, and regulatory support.

Several growth drivers will sustain this expansion. AI-based fraud detection is increasingly deployed to mitigate scam risks—losses reached approximately SGD 840 million in the first 11 months of 2025, per the SFA-PwC report, creating urgency for advanced risk models. Deeper cross-border interoperability, including Project Nexus’s expansion, will reduce friction in regional remittances and trade settlements. Tokenised deposits and regulated stablecoins—already dominant in Southeast Asian transaction volumes—will further embed blockchain rails into mainstream commerce.

Singapore’s position as the world’s third-largest foreign exchange trading centre reinforces the payments ecosystem. Average daily FX trading volumes rose to USD 1.49 trillion in April 2025, a 60% increase from April 2022, according to the SFA-PwC report. This liquidity depth supports stablecoin settlement and cross-border payment infrastructure.

The embedding of financial services into super apps, the expansion of SoftPOS to smaller merchants, and continued MAS support for innovation—including potential extensions to FSTI 3.0—provide additional upside. As SFA president Holly Fang characterized it, Singapore has developed “one of the most advanced, resilient and trusted payments ecosystems in the world.” The data supports that assessment.