Singapore's digital payments ecosystem has reached a tipping point, with 92% of adults using digital payments in 2025, driven by three key infrastructure advancements: the SGQR+ interoperable QR standard, widespread merchant adoption of contactless and SoftPOS technology, and the expansion of PayNow's regional linkages.
SGQR+ Enhances QR Interoperability and Merchant Efficiency
The SGQR framework, introduced jointly by the Monetary Authority of Singapore (MAS) and the Infocomm Media Development Authority (IMDA) in 2018, allows retailers to display a single QR code for customers to scan and choose from any supported payment option. This unified approach consolidated multiple QR labels into one, decluttering merchant stores and enabling businesses to offer multiple cashless payment methods through a single visual interface. SGQR is now widely used across F&B, retail, transport, and hawker environments, particularly by smaller businesses seeking a low-cost acceptance method.
However, the original SGQR retained structural inefficiencies. Merchants must still manage separate contracts with each payment provider, and the system only facilitates interoperability within an ecosystem rather than enabling full open-loop acceptance. According to MAS's whitepaper on interoperable QR payments, these limitations create friction for merchants seeking to scale and serve a wider range of domestic and foreign payment users.
SGQR+ addresses these gaps. Piloted by MAS in late 2023, SGQR+ introduces an open-loop QR code system designed to simplify merchant setup. Under SGQR+, a single contractual relationship and technical integration can connect merchants to multiple payment schemes, reducing administrative burden and operational complexity. The initiative positions SGQR+ as a foundation for regional payments connectivity. MAS and IMDA have articulated that a well-informed, market-driven interoperable QR infrastructure will lay the groundwork for Singapore's future payment evolution, with SGQR+ playing a critical role in promoting greater regional payments connectivity alongside its domestic benefits.
Merchant Adoption of Contactless and SoftPOS Expands Acceptance
Singapore's merchant landscape has embraced contactless payments at scale. Over 80% of consumers use tap-to-pay cards, according to WorldFirst analysis of PwC data. This high acceptance rate reflects both consumer preference and merchant readiness to deploy low-cost acceptance methods, including SoftPOS technology that enables smartphones to function as payment terminals without dedicated hardware.
Contactless and QR acceptance is now routine across retail, bill pay, and peer-to-peer transactions. SGQR and tap-to-pay are widely accepted in F&B, transport, and hawker environments, with smaller businesses particularly benefiting from infrastructure-light solutions. The 2026 Payments' State of Play report from PwC and the Merchant Advisory Group notes that cashless payments are now "routine across retail, bill pay and peer-to-peer, with tap and scan widely accepted."
The dominance of digital payments at point-of-sale is reflected in the transaction value breakdown from Worldpay's 2025 Global Payments Report:
Exhibit
Singapore Point-of-Sale Sales Value Share by Payment Method (2024)
Data from Worldpay's 2025 Global Payments Report.
%Source: Orionmano Industries
Digital wallets accounted for 29% of POS sales value in 2024, credit cards 34%, debit/prepaid cards 17%, BNPL 1%, account-to-account transfers 5%, and cryptocurrency approximately 1%. Cash still represented 13% of POS transaction value, indicating that while digital payments dominate, cash retains a presence in specific contexts such as hawker centres and among older consumers. Over 80% of consumers use tap-to-pay cards, reflecting the broad shift toward contactless and wallet-based transactions.
PayNow has become a backbone of Singapore's real-time payments ecosystem since its launch. The system supports instant transfers using a mobile phone number, NRIC, or UEN, making it suitable for peer-to-peer, business, and bill payments. Because PayNow and FAST transfers operate through existing mobile banking apps, no separate app download is required, reducing friction for users.
The strategic expansion of PayNow beyond domestic borders has amplified its impact. Singapore and India launched a live linkage between PayNow and India's Unified Payments Interface (UPI), enabling real-time cross-border fund transfers. This bilateral connection reduces remittance costs and settlement times compared to traditional correspondent banking channels. The integration builds on ASEAN's broader strategy under Project Nexus, which aims to create a pan-ASEAN real-time payments network by 2026.
Project Nexus targets the interoperability of domestic real-time payment systems across multiple ASEAN jurisdictions, potentially lowering costs for small-value remittances and cross-border commerce. Real-time payment transaction volumes across Asia-Pacific are projected to double from 49.2 billion in 2022 to 96.2 billion by 2027, with Singapore leading adoption through systems like PayNow. The gross merchandise value of Singapore's digital economy is estimated to rise from USD 29 billion in 2024 to between USD 40 billion and USD 65 billion by 2030, according to the PwC and Merchant Advisory Group report, with cross-border payment infrastructure playing a supporting role.
As SGQR+ rolls out fully and Project Nexus connects more ASEAN payment systems, Singapore is positioned to set a global benchmark for interoperable, real-time, and borderless digital payments. The next phase of execution includes completing the Singapore Payments Network (SPaN), broadening PayNow's cross-border links, and embedding real-time fraud prevention controls. These developments, combined with regulatory clarity under the Payment Services Act, should maintain Singapore's status as a reference model for digital payments infrastructure globally.