Holiday shopping has triggered a big jump in e-payments across Singapore, with PayNow seeing record usage as consumers increasingly tap, scan and pay digitally.
As shopping lists grow during the festive season, wallets are opening digitally. Across Singapore, consumers are choosing PayNow over cash or cards, using instant transfers backed by bank-grade security to simplify holiday spending.
PayNow enables instant, everyday payments
The Association of Banks in Singapore and participating banks launched PayNow in 2017 as a near- instant, real-time funds transfer system. People can easily transfer money using a mobile number, unique identity number, or virtual payment address, without needing a bank account number.
Available 24/7 throughout the year, PayNow supports person-to-person and person-to-merchant payments, including QR code transactions for small businesses. Its speed and simplicity make it especially useful for last-minute holiday payments and weekend transfers.
Holiday spending accelerates digital payment adoption
Holiday seasons naturally lead to more buying gifts, festive meals, decorations, travel and family expenses. The increased spending drives demand for payment methods that are fast and convenient, cashless and contactless, and flexible.
In Singapore, merchants from cafes to online shops increasingly accept digital payments and QR codes. Consumers often prefer sending money via phone or QR rather than handling cash or waiting for bank transfers. Small business owners selling holiday gifts or services benefit from instant payments and simpler cash flow.
During the holiday season, PayNow usage increases as people seek convenience, avoid queues and prefer digital wallets over cash.
Digital payments outperform traditional methods during holidays
Figure 1. Traditional versus holiday era e-payments
| Payment Scenario | Traditional Payment Method | Holiday-Era E-Payment (PayNow / Digital Wallet) |
|---|---|---|
| Buying gifts / shopping | Cash, cards, slow bank transfers, ATM withdrawals | Instant PayNow transfer or QR payment, quick and contactless |
| Sending money to family / friends | Cheque, remittance services, bank-to-bank transfers (delays) | Instant bank-to-bank transfer using mobile number / NRIC / VPA |
| Paying small merchants, hawkers, and food stalls | Cash or card (some stalls may not accept cards) | PayNow QR or a supported wallet works even for small vendors |
| Last-minute payments (gifts, bills, utilities) | Risk of delays, branch closed | Works 24/7, send money any time, even late at night |
| Budget / record-keeping | Manual cash notes, receipts | Digital record of transfer, easier to track spending |
Source: BankQuality
Risks and inclusion remain key considerations
Higher transaction volumes increase the importance of strong security and verification. Banks and payment providers must remain vigilant against fraud and payment errors, particularly during peak seasons.
Accessibility also remains an issue. Not all users own smartphones or feel comfortable with mobile payment apps, meaning cash still plays a role in some segments of society.
Digital payments move from convenience to default
The surge in PayNow usage during holiday shopping reflects more than a seasonal trend. It signals a broader shift in how people pay and transact in Singapore.
With infrastructure, regulation and adoption aligning, digital payments are becoming the default rather than a convenience. Systems like PayNow are creating a future where cash is optional, payments are instant, and interbank transfers are fully digital.
If you want to stay informed about how payment systems are changing the world of money, shopping and business, and what it means for you, visit BankQuality.