Is Singapore ready for a mobile payment scheme?

Mobile payment usage increased 42% in 2016.

Singaporeans may soon experience transferring funds without having to know the recipient's bank account number as the Monetary Authority of Singapore (MAS) announced its plans to reinforce electronic payments in the city-state.

According to the MAS's Singapore Payments Roadmap, the country has a massive 149% mobile penetration and 186% wireless internet saturation. With the electronic payment scheme, banking would be more convenient and easy for 96% of its population who have bank accounts.

"With the highest banked population, access to smartphones, and wireless broadband rates in Southeast Asia, Singapore demonstrates technological readiness for mobile payments," it said.

The study noted that while most of the consumers still rely on cash and debit cards for small-value transactions, mobile payment usage spiked up 42% from 2013 to 2016. This makes it likely for physical payment cards to be replaced by smartphones, mobile devices, and wearables in the future.

To recall, the Association of Banks in Singapore launched Fast and Secure Transfers (FAST) service in 2014, allowing the customers of participating banks to transfer funds instantaneously.

However, the system still requires people to key in the recipient's bank account number. This has hindered its widespread adoption across the country.

This has led MAS to set out strategies in enhancing electronic payments in the city-state to better suit the evolving needs of the consumers.

"With the rollout of FAST in 2014, there is an opportunity to expand use of this method in the near-term. Increasing its utilisation by consumers for daily and recurring payments is a potential win for everyone," the study explained.