The auxiliary activities segment, consisting largely of payment service providers, is forecast to expand steadily through 2029, underpinned by firm regional consumption and stable payments activity.

Auxiliary Financial Services Growth in 2025

Auxiliary financial services in Singapore expanded by 5.0% in 2025, led primarily by payment players that benefited from higher consumer spending across the region, according to FPA Financial's February 2026 market analysis. This growth outpaced the banking segment, which grew 4.4% over the same period as domestic credit intermediation strengthened.

The auxiliary activities segment consists largely of payment service providers, including buy now, pay later (BNPL) firms, digital wallet operators, and merchant acquirers. The Monetary Authority of Singapore (MAS) has noted that growth in 2024 was broad-based across segments including activities auxiliary to financial services, which largely comprise payments firms. The broader Singapore financial services sector is projected to expand at a compound annual growth rate of 4.0% from 2024 to 2029, underscoring the sector's continued resilience supported by digital banking, fintech innovation, and regulatory frameworks.

The financial sector's average growth rate stood at 4.7% from 2021 to 2024, keeping the industry firmly on track to meet the Industry Transformation Map (ITM) 2025 target of 4% to 5% growth per annum over the five-year period, as reported by MAS managing director Chia Der Jiun in July 2025. Auxiliary financial services growth in 2025 was specifically boosted by higher regional spending, with firm regional consumption and stable payments activity expected to sustain steady expansion going forward.

Year-on-Year Growth (%) (%)Source: Orionmano Industries

Payment Card Market Momentum and Forecast

Card payment value in Singapore grew 6.2% year-on-year to reach SGD158.2 billion in 2025, driven by increased consumer spending, expansion of e-commerce, and wider acceptance of contactless payments, according to GlobalData's Payment Cards Analytics. The market is forecast to reach SGD209.2 billion by 2029, representing a compound annual growth rate of 7.2% from 2025.

Credit and charge cards dominated total card payment value, representing 67.6% of the market in 2025. This dominance is supported by consumer preference for value-added features such as rewards, cashback, and installment facilities, which have contributed to faster growth of credit card volumes and values compared to debit products. Growth in the card payments market is sustained by near-universal bank access, extensive merchant acceptance networks—including hawker centres and small merchants—and rising adoption of contactless card functionality.

Strong domestic acceptance of debit cards operates through the local NETS network, which links partner banks to more than 150,000 acceptance points and supports contactless payments via its NETS FlashPay functionality. The launch of alternative mobile payment solutions including Apple Pay, Samsung Pay, and Google Pay has further shifted the competitive landscape, encouraging regional banks and telecom providers to introduce their own payment offerings.

Source: Orionmano Industries

BNPL and Digital Payment Innovation

Singapore's BNPL market is expanding rapidly, fueled by the rise of e-commerce and changing consumer preferences for flexible payment options, according to a Research and Markets report from 2025. As more consumers seek interest-free installment options, BNPL providers are integrating across retail and digital platforms, with the segment expected to become a key component of Singapore's digital financial ecosystem.

Key players include Atome, GrabPay, and Rely, with recent consolidation evident through Pace Enterprise's acquisition of Rely, signaling a maturing market. Major international and domestic players—including Klarna, Afterpay, and Grab Financial alongside domestic fintechs Atome and Hoolah—have integrated with leading e-commerce platforms such as Shopee, Lazada, and Amazon Singapore. Growth is supported by e-commerce expansion and diversification into sectors like transportation, with providers introducing new features and partnerships to capture larger market share.

The digital payment infrastructure continues to evolve. Ripple Markets APAC received MAS approval in December 2025 for an expanded scope of payment activities under its Major Payment Institution license, enabling the company to broaden its regulated payment offerings in Singapore. As one of the few blockchain-enabled institutions globally with an MPI license, Ripple's expanded approval underscores Singapore's position as a regulatory hub for digital assets. Fiona Murray, Ripple Vice President and Managing Director for Asia Pacific, noted that the Asia Pacific region leads globally in real digital asset usage, with on-chain activity up approximately 70% year-over-year, and that Singapore sits at the center of that growth.

Regulatory Framework and Regional Support

The Monetary Authority of Singapore has actively promoted a cashless society through initiatives such as FAST (Fast And Secure Transfers) and PayNow, which enable instant peer-to-peer and merchant payments. These infrastructure investments foster trust in electronic payments, encouraging consumers and merchants to shift away from cash. Banks and fintechs are responding with enhanced card services including virtual cards, QR-based payments, and real-time transaction alerts, reinforcing the broader cards and payments ecosystem.

MAS has set a leading standard for regulatory clarity in digital assets, as Ripple President Monica Long stated following the company's expanded license approval. The "regulation-first" approach has enabled innovation to thrive under clear rules, supporting the broader fintech ecosystem that includes payment service providers, digital wallet operators, and emerging payment technologies.

The financial sector's ITM 2025 target of 4% to 5% annual growth from 2021 to 2025 remains on track, with auxiliary services growth specifically boosted by higher regional spending in 2025. Regional consumption remains firm, supporting stable payments activity and the auxiliary segment's steady expansion through 2029. Job creation in the financial sector is also on track, with average annual net jobs created from 2021 to 2024 reaching 4,400—exceeding the ITM target of 3,000 to 4,000 per annum—with more than 90% of these positions filled by local workers.

With sustained regional consumption, proactive MAS regulation, and continued innovation in BNPL and digital payment infrastructure, the auxiliary financial services segment is positioned for steady growth through 2029, supporting Singapore's broader financial sector targets.