Seven in 10 consumers in Singapore said that since the onset of the Covid-19 virus, they have increased their use of digital or cashless payment methods.
Changes to shopping behavior during the pandemic have given digital payments such as credit or debit cards, mobile banking apps and e-wallets a boost, according to UOB's «ASEAN Consumer Sentiment Study,» published this week.
According to the study, online shoppers formed 86 percent of those using digital payments during the pandemic, with 73 percent of this group reporting an increase in their use of digital payment methods. Those who did not shop online also reported a rise in digital payments, with 53 percent saying they use digital payments more than they did before the pandemic.
Sticky Behaviors Changing
«One of the biggest hurdles to a truly cashless society has been the ingrained behaviors of consumers, which are formed over many years and tend to shift only gradually. Digital payments went from being a convenience to an essential service following the swift and sudden impact of COVID-19 on our lives,» Jacquelyn Tan, head of group personal financial services, UOB, said.
These trends were also reflected among the five ASEAN countries covered in the study – Indonesia had highest share of consumers who said their use of digital or cashless payments had gone up (74 percent), followed by Singapore (70 percent), Vietnam (67 percent), Malaysia (63 percent) and Thailand (50 percent).
Complete Shift Possible
Almost 9 in 10 respondents said they are willing to go cashless entirely if the conditions are right. The top three conditions cited by respondents were digital payment methods becoming easier and more convenient to use, improvements to the security of such payments and a wider acceptance of cashless payment methods by retailers.
