Singapore is strengthening its position as a global payments hub as digital wallets, real-time payment systems and regulated stablecoins move closer to mainstream use, according to a new report by PwC Singapore and the Singapore FinTech Association.

The report, Payments’ State of Play 2026, outlines how Singapore’s payments ecosystem has evolved from building domestic infrastructure to supporting cross-border scale. Regulatory clarity and coordination between the public and private sectors are identified as key factors in this shift.

Domestic Digital Payments Near Saturation

The report shows that Singapore’s domestic payments market is already highly digitised. About 92% of Singaporeans used a digital payment method in the year through November 2025. Adoption has been supported by high smartphone penetration and the rollout of national payment systems such as FAST and PayNow.

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Retail point-of-sale transactions are now largely cashless. Digital wallets continue to gain share in both e-commerce and in-store payments. Millennials and Generation Z account for the majority of wallet usage. PayNow and GrabPay are among the most commonly used options for younger consumers.

With domestic adoption close to saturation, the report suggests future growth will come from areas beyond cash replacement. These include cross-border payments, embedded finance and new payment instruments.

“Over the past decade, Singapore has transformed its payments ecosystem,” said Wong Wanyi, FinTech Leader at PwC Singapore. She pointed to innovation and a strong regulatory framework as drivers of this development.

Cross-Border Payments Take Priority

Cross-border connectivity is identified as a central focus of the next phase of payments development. Singapore has already linked PayNow with Thailand’s PromptPay and Malaysia’s DuitNow. These links allow low-cost, real-time transfers using mobile numbers.

Singapore is also participating in Project Nexus. The initiative aims to connect fast payment systems across Southeast Asia and India. According to the report, these linkages are intended to reduce friction in regional payments and support local currency settlement.

As cross-border infrastructure expands, Singapore’s remittance market is expected to grow. The report projects that total remittance volumes will increase from USD 8.05 billion in 2022 to USD 13.34 billion by 2032. Growth is linked to mobile-based payment channels and Singapore’s role as a regional business, tourism and education centre.

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The report also identifies gaps. Consumer awareness remains lower than merchant readiness. As of mid-2025, only 56% of consumers were familiar with cross-border digital wallet capabilities.

Stablecoins Move Toward Payments Use

Stablecoins are a central theme of the report. Under the Monetary Authority of Singapore’s framework, stablecoins are increasingly positioned as payment and settlement tools rather than speculative instruments.

“In Singapore, MAS’s regulatory framework for stablecoins remains a global benchmark,” the report states. It highlights requirements covering reserve backing, redemption rights and transparency.

The report points to recent initiatives that link stablecoins to consumer payments. These include GrabPay’s integration with OKX Pay and StraitsX. The setup allows users to pay with USDC or USDT at participating merchants. Transactions are settled in Singapore dollars, reducing volatility exposure for merchants.

Institutional developments are also noted. These include Paxos’ banking partnership with DBS for stablecoin reserve custody and cash management. The report also references merchant pilots involving licensed payment providers accepting stablecoin payments.

Together, these cases reflect what the report describes as a “layered utility approach.” Under this model, stablecoins are tested across retail payments, treasury functions and tokenised financial products at the same time.

FX and Payments Infrastructure Intersect

Singapore’s payments role is closely tied to its foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term market. Average daily FX trading volumes reached USD 1.485 trillion in April 2025. This represented a 60% increase from April 2022. Singapore ranks as the world’s third-largest FX trading centre, after London and New York.

The report notes that traditional money changers continue to operate alongside newer digital platforms. FinTech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term firms are increasingly offering digital remittance and FX services, especially for higher-value or cross-border transactions. As cash usage declines, hybrid models combining physical and digital services are expected to expand.

Fraud, Interoperability and Oversight

The report identifies fraud and scams as a growing challenge alongside digital adoption. Scam-related losses in Singapore reached SGD 1.1 billion in 2024. Cryptocurrency-related scams accounted for a notable share of these losses.

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Authorities and financial institutions have responded with tighter controls. Measures include stronger authentication, real-time transaction monitoring and public education campaigns. The report frames fraud prevention as a shared responsibility among regulators, payment firms and consumers.

Holly Fang, President of the Singapore FinTech Association, said cooperation across the ecosystem will remain important. “Safeguarding trust requires a shared responsibility framework,” she said, referring to the need for coordinated action against fraud and scams.

Programmable Money Drives Singapore Payments Growth

According to the report, the next phase of Singapore’s payments development will be shaped by AI-driven fraud detection, programmable money, embedded finance and wider use of real-time cross-border payment systems.

By combining regulatory oversight with continued system development, Singapore aims to strengthen its role as a payments and settlement hub. The report also positions interoperability and consumer protection as ongoing priorities as regional payment links expand.