According to a recent study by Visa, Singaporeans have shown a strong preference for using app-based digital remittance platforms, making it the most popular method for sending (72%) and receiving (76%) money internationally. This is higher than the global average, where more than half of consumers (53%) are using digital apps to send money.
The study, entitled “Money Travels: 2023 Digital Remittances Adoption,” revealed that 43 percent of Singaporeans send money via digital apps at least once a month. The main reasons for this preference in Singapore include speed and ease of use compared to cash and other payment methods. Over half (51%) of users are likely to use digital apps more frequently in the future.
The remittance market in Singapore is expected to reach more than USD12 billion in transaction volume by 2030. The study found that more than four in five (83%) consumers are sending or receiving money at least once a year, and more than 70 percent of them have either sent or received remittances within the last six months. The top reasons why consumers are making money transfers include having to remit money regularly (47%), using remittances for accounts or investments (38%), and for unexpected needs (33%).
Visa Country Manager for Singapore & Brunei, Adeline Kim, said, “Remittance is an essential financial service for people in Singapore, such as parents who send money to their children overseas, and they need assurance that their money arrives securely and quickly to wherever they are sending it. Our survey showed that more than a third (34%) of consumers who are sending digital remittances and close to a third who are receiving them (28%) said they had the seamless experience they expected. By contrast, only seven percent of those sending and 11 percent receiving cash remittances were satisfied with the experience.”
Kim also noted that consumers in Singapore embrace digital payments and expect the same standards for making international money transfers. Visa Direct, a global real-time money movement network between card accounts, makes it possible for banks and fintechs to enable instantaneous cross-border payments in a convenient and secure manner. Today, Visa is seeing more than 50 percent growth in terms of monetary value for Visa Direct transactions in Singapore and continues to work with more partners to introduce convenient and secure money movement transfers.
The study also identified several key insights, including:
- Ease of use, speed, and privacy are key to Singapore users. The majority of both senders (60%) and receivers (61%) of remittances in Singapore cite ease of use as the main benefit of using digital apps to send money internationally. This is followed by speed and privacy (agreed by 53% of senders, 57% of receivers).
- Digital remittance methods deliver rapid transfer speeds. Compared to other remittance methods, both Singaporean senders (64%) and receivers (62%) believe that international transfers made via digital apps are quick and usually received within a day.
- Digital security ensures peace of mind. App-based digital remittances are perceived as the most secure method for sending money (42%). This sentiment is also shared by those in Singapore receiving remittance payments (43%). Both senders and receivers of remittances agree that cash remittances via mail or courier (45%) are the least secure option.
Overall, the study highlights the strong preference for app-based digital remittance platforms among Singaporeans, driven by the convenience, speed, and security that they offer. This trend is expected to continue, with more consumers likely to use digital apps for international money transfers in the future.
