Quick Read
- Singapore’s card payments are projected to grow 7.2% annually from 2025 to 2029, reaching S$209.2 billion.
- Hawker centres and small merchants are increasingly adopting card payments, contributing to this growth.
- Government-backed subsidy programs are helping offset point-of-sale installation costs for SMEs, including hawker stalls.
- Card payments rose 6.2% to S$158.2 billion in 2025, driven by consumer spending and contactless adoption.
- Credit and charge cards dominated 2025 payment value (67.6%), while debit cards accounted for 32.4%.
SINGAPORE (Azat TV) – Singapore’s iconic hawker centres, long synonymous with cash transactions, are now playing a significant role in the nation’s robust growth in card payments, which are projected to surge by 7.2% annually to reach S$209.2 billion (approximately $158.3 billion) by 2029. This expansion into traditional small merchant spaces is a key factor underpinning the country’s broader shift towards electronic transactions, supported by widespread banking access, contactless innovation, and targeted government initiatives.
Hawker Centres at the Forefront of Digital Payment Adoption
The embrace of card payments by hawker centres and other small merchants is a critical driver for the sustained growth observed in Singapore’s payment landscape. Data and analytics firm GlobalData indicated that the value of card payments in Singapore grew by 6.2% year-on-year in 2025, reaching S$158.2 billion ($119.6 billion). This upward trend is attributed to stronger consumer spending, the continued expansion of e-commerce, and, notably, a broader acceptance of contactless payments, even in micro-SME environments.
Ravi Sharma, lead banking and payments analyst at GlobalData, emphasized that the market’s steady expansion is built on a highly banked population, a sophisticated card network, and strategic government and bank programs designed to encourage both merchants and consumers to favor card-based transactions. He specifically highlighted that innovations in contactless solutions and the widening acceptance of cards, including within hawker centres, have been instrumental in this growth.
Government Initiatives Pave the Way for Merchant Acceptance
Government-backed initiatives have been pivotal in facilitating the adoption of card payments among small and medium-sized enterprises (SMEs), which include many hawker centre stalls. Subsidy programs, designed to help offset the cost of point-of-sale (POS) installations, have significantly lowered the financial barriers for retailers and service providers to integrate card payment technologies. This proactive approach has broadened the overall acceptance footprint, making digital payments more accessible across various sectors of the economy.
Singapore’s Evolving Payment Landscape
While hawker centres represent a crucial frontier, the overall card payments market in Singapore is dynamic. Debit cards remained a substantial component in 2025, accounting for 32.4% of the total card payment value, or S$51.2 billion ($38.7 billion). This strong usage is supported by financial inclusion efforts, the availability of low-cost basic bank accounts, and robust domestic acceptance through Singapore’s local payment network, NETS. NETS links partner banks to over 150,000 acceptance points nationwide and supports contactless payments via its FlashPay functionality.
Credit and charge cards, however, dominated the market, representing 67.6% of the total payment value in 2025. This segment’s growth is largely driven by consumer preference for value-added features such as rewards, cashback, and installment plans, leading to faster growth in credit card spending compared to debit cards.
Competitive Battleground and Future Outlook
GlobalData anticipates that Singapore’s card payments market will continue to benefit from ongoing financial inclusion efforts, a well-developed payments infrastructure, and the persistent shift towards electronic and contactless payments. Despite potential risks from geopolitical and trade-related uncertainties, the expanding acceptance networks and the steady migration away from cash are expected to sustain healthy growth in card transaction values through 2029.
Even with the expansion of real-time account-to-account transfers and QR payment schemes across Southeast Asia, cards are expected to remain the ‘default’ for everyday retail in Singapore, particularly where features like rewards, chargeback protections, and installment options influence consumer choice. The primary competitive battleground is now shifting towards winning over smaller merchants, hawker-style outlets, and micro-SMEs, where the ease of acceptance and simple onboarding processes are key determinants of whether spending occurs via cards or alternative digital rails.
The increasing adoption of card payments by Singapore’s hawker centres underscores a significant cultural and economic shift, demonstrating the effectiveness of government initiatives in driving digital transformation from the grassroots level up. This integration not only modernizes traditional commerce but also solidifies Singapore’s position as a leader in digital financial services, ensuring that even the smallest businesses can participate in the growing digital economy.