A recent edition of the Visa Consumer Payment Attitudes Study has unveiled that nearly 90% of Singapore consumers perceive cashless payment methods, such as cards, mobile wallets, and mobile banking, as the most eco-friendly option. The study highlights the increasing significance of sustainability, environmental values, and societal causes among Singaporeans, with a significant proportion actively seeking knowledge on responsible consumption or planning to do so.
The study reveals that 61% of consumers are eager to see physical cards made from sustainable materials, considering it a more environmentally friendly choice. Additionally, 45% of Singapore consumers are willing to contribute a portion of their loyalty rewards points, earned through credit card usage or similar services, towards sustainability causes. When it comes to environmental causes, respondents displayed the highest interest in organizations involved in climate change (43%), sustainability (38%), and waste management (34%). Regarding societal causes, loyalty points are most likely to be directed towards efforts supporting food for all (30%), disaster recovery (22%), and public health (20%).
Furthermore, over half of Singapore consumers (53%) express a desire to receive on-demand tips and education on sustainable consumption through apps provided by financial service providers and banks. The study emphasizes that sustainability, environmental values, and societal causes significantly impact consumers’ support for specific brands, with 34% of Singaporeans willing to switch to brands prioritizing sustainability, as long as price and quality remain consistent.
Adeline Kim, Visa Country Manager for Singapore & Brunei, notes the growing interest in sustainability among consumers and the opportunity for payments networks to facilitate the transition to net zero. Visa, for instance, introduced its Eco Benefits solution, allowing cardholders to calculate the carbon footprint generated by their Visa transactions and access options for carbon offsetting or charitable donations through their bank’s website or app.
The post-pandemic environment has also influenced consumer behavior, with more than half of Singaporeans (52%) indicating a preference for avoiding cash payments. Additionally, close to 40% plan to spend the most on groceries and personal care items in the coming year compared to other categories. The study further reveals that nearly 70% of Singaporeans have increased their household savings for essential goods as a result of the pandemic. Moreover, 60% are actively saving for the future and closely tracking their monthly expenses.
As consumer habits continue to evolve, embracing cashless payments and prioritizing sustainable options has become a prevailing trend in Singapore, with Visa playing a crucial role in meeting consumers’ demands for transparency and understanding of their environmental impact.