SINGAPORE - Media
OutReach - 24 October 2018 - UNPay and Tencent Research Institute have jointly published
the first of a series of white papers on the payment landscape focusing on Southeast
Asia. Dubbed "The Venturing Out" series, the first paper centred on the Singapore
market, was developed to help Chinese payment companies looking to venture
overseas, have a better understanding of the local regulations and policies.
As the fourth largest
international financial hub after New York, London and Hong Kong, Singapore has
an established payment infrastructure and a comprehensive payment regulatory
framework. To gain a deeper understanding of Singapore's payment market, the
research teams from UNPay and Tencent, put together a detailed outline of the country's
regulatory framework, structure and policies.
While the use of
e-payments has been rising steadily over the past few years, interoperability
among the myriad of e-payments methods has been a growing concern in Singapore.
To overcome this issue, a taskforce was set up to develop a common QR code for the
nation. In the country's push for a cashless society, the inclusion of
electronic payment was even set as one of the five strategic pillars in its Smart
Nation initiative. The common QR code, also known as the SGQR code was
officially launched on 17 September this year, becoming the world's first
unified universal payment QR code.
mobile internet infrastructure is well developed, with a high digital literacy,
this digital awareness has not translated into actual usage of e-payment
methods. According to the white paper, it has been found that traditional
payment methods such as cash and checks are still common in small transactions
in Singapore. Among the commonly used payment methods, cash is ranked second
only to the stored value instrument (SVF). However, with strong support from
the government and the industry players, there is a lot of room for development
in Singapore's emerging payment market.
Based on statistics
from market research and business intelligence portal, Statista, the number
of e-payment users in Singapore will reach 4.6 million in 2018, which accounts
for more than 80% of Singapore's total population. The total transaction volume
will reach 11.777 billion US dollars, with a total transaction volume of 12.4%.
The average annual compound growth rate is expected to increase to a total of
18.796 billion US dollars in 2022.
With these data, it is
clear that the global payment market is developing rapidly; innovations in payment
are also emerging in droves. China's payment companies which have been been
spearheading the fintech revolution, are now actively looking to bring their
payment solutions overseas. "Venturing Out" has thus become the new normal, paving the way
for these Chinese payment companies to maintain their lead globally.
China's payment industry has become one of the most active payment forces in
the world, and is more capable than ever to lead in international arenas,"
expressed Mr Zhang Zhenghua, Founder and CEO of UNPay, who was also the research
"As a fintech open service
platform, UNPay aims to make advanced payment technology available globally. We
strive to open up payment capabilities, the global payment industry chain, as
well as empower finanical institutions. In the coming months, we will be
releasing our white paper on the payment industry in another country. Please
stay tuned for that!" added Mr Zhang.
refer to this link for a copy of the white paper: http://www.tisi.org/Public/Uploads/file/20181018/20181018123839_80459.pdf