Contactless card payments in Singapore have tripled over the past year, according to United Overseas Bank's (UOB) statement today (7 July 2014).
The bank found that on average, more than 500 contactless card payments were made daily from April last year to April this year, which is three times more than that from April 2013 to April 2014.
Since contactless card payments are limited to S$100 (US$80) per transaction, nine out 10 of such payments were found to be for groceries and dining.
UOB also revealed that professionals and executives between 30 and 45 years of age were more inclined to use contactless card payment services.
Contactless cards are credit and debit cards enabled with the Visa payWave or MasterCard PayPass that enable users to make payments by waving the cards before a reader.
Singaporeans seem to be embracing contactless payment services well as the number of such transactions is growing at an average monthly rate of 18 percent, said Ooi Huey Tyng, Visa country manager for Singapore, in a statement. She added that about 20 percent of all in-store transactions made on Visa cards are currently done via contactless payment.
To tap on the high adoption rate of such transactions, UOB plans to have all of its approximately 20,000 merchants to accept contactless card payments over the next three years. Currently, such payments are accepted at 1,500 locations.
Sign up for MIS Asia eNewsletters.