Top 5 Online Payment Methods for Businesses in Singapore

While cash and other offline payment methods are still used in Singapore, online payments have quickly become the preferred choice—and their share of total spending is expected to continue growing.

Whether paying by card on an e-commerce site, using a digital wallet when ordering through an app, or scanning a QR code shared by a seller on social media, online payments have become part of everyday life. Even many in-person purchases are now settled using cashless, online methods.

That’s why businesses in Singapore should periodically review the online payment methods they offer, so they can stay competitive and meet evolving customer expectations.

In this article, we examine the top five online payment methods, their benefits, and other key factors to consider. We’ll also mention how a Wise Business account is an excellent way for Singapore businesses to collect payments online from both local and international customers.

Table of contents
How do online payments work? Common costs and fees involved Top 5 online payment methods in Singapore Selecting the best online payment methods for your Singapore business

How do online payments work?

When a customer in Singapore makes an online payment, it may seem instant, but there's a secure, behind-the-scenes process that ensures the money is transferred from the customer's account to the seller.

Here’s a typical payment flow when someone makes a purchase on an e-commerce site:

• Step 1: The customer selects a payment method at checkout (e.g., card, digital wallet, PayNow).
• Step 2: Payment details are encrypted and sent via the store’s payment gateway (e.g., Stripe, Shopify Payments) to a processor. Sometimes, these are the same entity.
• Step 3: The processor routes the request to the relevant bank, card network, or wallet provider for approval.
• Step 4: If approved, the customer receives a confirmation or receipt, and the seller is notified.
• Step 5: Funds are transferred to the seller’s account instantly or on the same day for PayNow or digital wallets, or within 1–3 business days for card payments.

💡Most businesses that sell online use some form of payment gateway to handle transactions securely.
➡️ Check out our review of the best payment gateways in Singapore

Common costs and fees involved

Different online payment methods come with varying costs for merchants. Here’s a quick overview of typical fees across the main options:

• PayNow: 0% fee when payments go directly into business accounts (waived until 31 Dec 2025); about 0.25% via bank collection apps; and roughly 1.3% through gateways like Stripe.¹
• Credit and Debit Cards: Typically 2.8% to 3.5% per transaction, with extra fees for international cards and currency conversion.
• Digital Wallets: Apple Pay and Google Pay generally follow card rates, while GrabPay and ShopeePay charge around 1.5% to 3.3%.²
• Buy Now, Pay Later (BNPL): Usually 5% to 6%, plus a small fixed fee—for example, Atome charges around 5% and Grab PayLater charges 6%.³

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Top 5 online payment methods in Singapore

1. Credit and debit cards

Credit cards remain one of the top online payment methods, accounting for approximately 37% of e-commerce transactions in Singapore in 2024.⁴ Debit and prepaid cards represent an additional 12%, bringing the total card-based payments to around 49%.

However, the dominance of credit cards in particular has declined significantly in recent years due to the rapid growth of digital wallets and other alternative online payment options.

Benefits of card payments:

• Widely used by customers and accepted by merchants.
• Suitable for both local and international transactions.
• A trusted and secure way to pay online.
• Instant processing for quick confirmation.
• Card details can be stored securely for faster checkout on future orders.

Major cards used in Singapore:

The most commonly used cards for online transactions in Singapore include:

• Visa: Widely accepted for both local and international online transactions.
• Mastercard: Similar to Visa in acceptance and usage.
• NETS: A Singapore-based payment system for domestic in-store and online debit transactions.
• American Express (Amex): Accepted on many platforms, though less universal than Visa/Mastercard.

💡Did you know that with Wise Business, you can accept card payments as well?
Card processing fees are low, and you choose if and when to convert the money you receive. Even better, if you do convert your funds, you'll always get the mid-market rate. ➡️Learn more about accepting card payments with Wise

2. Bank transfers

Bank transfers are a widely used online payment method in Singapore, largely driven by PayNow, a real-time payment system adopted by over half of the population.⁵

With PayNow, businesses and individuals can instantly transfer Singapore dollars (SGD) between bank accounts using just a mobile number, NRIC, UEN, or a QR code.

➡️Read our full PayNow Corporate setup guide here

Benefits of bank transfers

Here are the key benefits of bank transfers, including PayNow, for online payments in Singapore:

• PayNow is widely adopted across Singapore by individuals and businesses.
• Low or no transaction fees on sending and receiving SGD.
• Near‑instant transfers over the FAST network.
• No need to exchange bank account details when using PayNow.
• Backed by the Association of Banks in Singapore (ABS), ensuring trust, security, and reliability.

Major financial institutions supporting PayNow

PayNow is available through 22 participating banks and 6 non-bank financial institutions (NFIs), including:⁶

• DBS Bank
• OCBC
• UOB
• Standard Chartered
• Wise
• GrabPay

💡 Did you know with Wise Business, you can get local account details to receive payments like a local?

That means if your business deals with customers from abroad, you can share a local account number in your customer's currency, and they will be able to send their payment into your Wise account — just as if they were sending a local bank transfer. In fact, this is exactly how Axpara started receiving payments from customers in other countries, without even setting up a local business entity. ➡️ Learn How Axpara Saved $50K+ Annually and Scaled Globally with Wise Business

3. QR codes

Singapore was one of the first countries to standardise QR code payments nationwide, making them easy to use for both in-store and online transactions.

The Singapore Quick Response Code (SGQR) combines QR codes from banks, digital wallets, and other payment providers into one. Instead of showing several codes, merchants display a single SGQR code that accepts multiple payment methods.

Here are the two main types of QR codes that can be generated, along with examples of how they’re used for online payments:

Static QR Codes: A fixed QR code where customers manually enter the payment amount after scanning. Merchants must match payments manually by checking the payer’s name or reference in the notification.

Example use cases: Sellers on social media may send buyers a static QR image via chat. Charities or non-profits might post static QR codes online to collect donations.

Dynamic QR Codes: A unique code is generated for each transaction, containing the amount due and a reference number. The system automatically reconciles payments, so orders are marked as paid without manual checks.

Example use cases: Online stores generate a dynamic QR code at checkout for the items in a customer’s cart. Utility or telecom billing portals generate a QR code tied to a customer’s monthly bill.

Benefits of QR code payments

Key advantages of QR code payments for online transactions in Singapore include:

• SGQR supports multiple payment methods through one QR code.
• Payments are processed in real-time over networks like FAST.
• Users don’t need to share sensitive bank or card details.
• Quick and simple for customers to scan and confirm.
• Works directly through smartphones, eliminating the need for card terminals.

💡By the way, Wise Business also lets you create QR codes to share with customers so they can pay you easily.
For a more detailed guide on using PayNow QR Codes, ➡️ Check out: How to Generate a PayNow QR Code for Your Business

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4. Digital wallets

Digital wallets have surged in popularity as a preferred online payment method in Singapore, capturing 39% of e-commerce transaction value in 2024, a significant increase from just 7% in 2014.⁷

This rapid growth is driven by their convenience, speed, and seamless integration with mobile technology and rewards programs. Digital wallets can be linked to debit or credit cards, or funded through bank transfers such as PayNow.

Benefits of digital wallets

The following are some of the main benefits attracting individuals and businesses to use and accept digital wallets for online payments:

• Ideally suited for the growing share of mobile e-commerce.
• Purchases on apps or websites can be completed in a few taps, without entering card or bank details.
• Link multiple cards or accounts to a single wallet to fund transactions.
• Authenticate payments quickly and securely with Touch ID, Face ID, or a passcode.
• Often include rewards, cashback, or loyalty programmes to incentivise usage.

Most used mobile wallets in Singapore

Wallet usage varies in Singapore between online and in-store shopping:

• Online purchases: The most frequently used digital wallets are Apple Pay (24%), PayPal (20%), ShopeePay (18%), and GrabPay (18%).
• In-store purchases: DBS PayLah! ranks first (25%), followed by Apple Pay (22%), GrabPay (12%), and Google Pay (12%).

5. Buy Now, Pay Later (BNPL)

Although BNPL accounts for less than 5% of total e-commerce payments in Singapore, making it far less common than cards and digital wallets, it can still be a valuable option for businesses to consider.

One key reason is that customers who use BNPL often spend more per transaction. Studies show that average order value (AOV) can increase by around 20% when BNPL is offered.⁸ For example, a customer might hesitate to spend S$400 upfront, but with the option to split it into “S$100 × 4 payments,” they are more likely to complete the purchase.

Benefits of BNPL

BNPL offers some compelling benefits to both consumers and merchants, including:

• Paying in instalments incentivises larger purchases.
• The merchant receives payment upfront from the provider, while the customer pays over time.
• Works with major e-commerce platforms and payment gateways for online and in-store checkout.
• Provides a way for shoppers without credit cards to spread out payments.
• Reduces cart abandonment by making purchases feel smaller, safer, and simpler.

Major BNPL Providers in Singapore

In recent years, there have been some notable exits, including ShopBack PayLater (formerly Hoolah) and Pace. The following remain as the dominant BNPL providers in Singapore⁹:

• Atome — widely accepted across online and in-store merchants
• Grab PayLater — integrated into Grab’s super-app
• SPayLater — Shopee’s built-in BNPL for marketplace purchases

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Selecting the best online payment methods for your Singapore business

Here are some key considerations to help you decide:

• Cost of operations: Balance customer convenience with cost efficiency. Payment gateways charge a fee on every transaction, which can add up quickly, while PayNow transfers can be free.
• International transactions: If you sell to overseas customers, watch out for foreign exchange conversion fees and hidden exchange rate markups. Using a Wise Business account to receive payments from abroad can help you reduce these costs.
• Customer preferences: Think about where you’re selling—point of sale, website, app, or invoices—and choose the payment methods your customers find easiest and most familiar.
• Failed payment rates: Card payments are more prone to declines, which can cause cart abandonment. QR codes and digital wallets typically have higher success rates.

Payment methods for specific business models

For online retailers

Leveraging existing infrastructure

Use established payment gateways and processors that integrate easily with your e-commerce platform. This ensures fast, reliable transactions and that you offer a wide range of online payment methods at checkouts.

Supporting chip cards and mobile wallets

Data shows that card and digital wallet payments accounted for 88% of e-commerce transaction value in Singapore in 2024. Therefore, it is essential for online retailers to ensure their checkout supports major card networks and popular digital wallets.

For SaaS and subscription companies

Setting flexible subscription logic

Select a payment processor that can handle recurring billing, trial periods, proration, and plan changes, such as upgrades, downgrades or cancellations, automatically, without requiring manual work.

Thinking about your invoicing needs

Not all SaaS payments flow through “set-and-forget” subscriptions. Some clients, especially enterprises, may prefer to pay invoices via bank transfers or PayNow. Ensure your system can handle both automated subscription charges and invoice-based billing to cover a broader customer base.

For platforms and marketplaces

Verifying users during onboarding

Use providers that streamline KYC (Know Your Customer) checks while keeping sign-up simple. Robust user verification processes reduce fraud and build trust between buyers and sellers on your platform.

Supporting different ways to move money

Unlike retailers, marketplaces handle both incoming payments from customers and outgoing payouts to sellers. Offer payouts via bank transfer or digital wallets, and support multiple currencies so sellers and service providers are paid conveniently.

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Conclusion

Singapore’s online payments ecosystem is both mature and highly developed, giving businesses a wide range of reliable options to choose from. The key is to weigh up customer preferences, transaction costs, and operational needs to determine which methods are the best fit for your business.

For some businesses, keeping things simple by offering just one or two payment options may be the most efficient and cost-effective approach. For others, providing a broader mix of methods can help capture a wider customer base.

💡If you're growing a global business, you'll quickly face a daunting wall of costs, complexity, and hidden fees when receiving international payments. Wise Business helps you bypass this wall, making it easy to receive money from around the world and start getting paid like a local today.

• Obtain account details to receive payments in GBP, EUR, CAD, AUD and more for a one-time fee of S$ 99.
• Simply share your account details with customers or add them to invoices.
• Hold, send, and convert money at the mid-market rate in one account.
• Simplify customer payments with Wise request payment feature.
• Accept payments from customers and payment service providers (PSPs) like Stripe and Amazon.
• Generate payment links to request money in specific currencies.

➡️Get started with Wise Business today

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Sources:

1. Pricing & Fees - Stripe
2. Affordable Payment Solutions Pricing - HitPay Singapore
3. Atome buy now pay later payment method - Adyen
4. Digital Wallets Overtake Credit Cards as Top E-Commerce Payment Method in Singapore - Fintech Singapore
5. Digital payment trends exploding in Singapore with Gen Z leading shift | Xero PH
6. PayNow Singapore
7. GPR 2025 is out now | Worldpay
8. How BNPL Is Changing E-Commerce | PayPal US
9. Registry of Accredited BNPL Service Providers – Singapore FinTech Association

Sources checked on 18th August 2025