Nearly 90 percent of Singaporeans Consider Cashless Payments to be Most Eco-Friendly: Visa Study
Nearly nine in 10 Singapore consumers consider cashless payment methods, including cards, mobile wallets and mobile banking, to be the most eco-friendly, according to the latest edition of the Visa Consumer Payment Attitudes Study1. The study highlighted the increased importance consumers in Singapore place on sustainability, environmental values and societal causes, with a significant proportion of them actively taking steps (33%) or planning to take steps (41%) to expand their knowledge on responsible consumption.
Six in 10 consumers (61%) are keen to see physical cards made from sustainable materials given it is a more eco-friendly option. Nearly half of Singapore consumers (45%) are also willing to donate some part of their loyalty rewards points, accrued through the usage of their credit cards or other similar services, to sustainability causes. In terms of environmental causes, consumers were most interested in organisations involved in climate change (43%), sustainability (38%) and waste management (34%). As for societal causes, they are most likely to put their loyalty points towards efforts that support food for all (30%), disaster recovery (22%) and public health (20%).
More than half of Singapore consumers (53%) are also keen on receiving on-demand tips and education on sustainable consumption through apps that they use provided by financial service providers and their banks. The study highlighted that sustainability, environmental values and societal causes are influencing consumers’ support for certain brands. More than a third of Singaporeans (34%) are willing to switch to brands that focus more on sustainability, as long as the price and quality remain the same.
“For many years now, ESG has been a key focus for corporations globally, but we are seeing more consumers in Singapore becoming more interested in sustainability,” said Adeline Kim, Visa Country Manager for Singapore & Brunei. “From supporting low carbon urban mobility to helping banks develop their sustainability approach, payments networks have an opportunity to play a crucial role in facilitating the transition to net zero. As the network working for everyone, Visa is well-positioned to meet consumers’ needs and demands for greater transparency and understanding of their environmental impact. For example, Visa launched our Eco Benefits solution last year where we work with our issuing banks to enable 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.”
Consumer habits continue to evolve post-pandemic
The post-COVID environment has solidified new consumer behaviours too, with more than half of Singaporeans (52%) saying that they will avoid making cash payments, a shift in behaviour since the pandemic. Close to 40 percent also highlighted that they are likely to spend most on groceries and personal care items in the next one year compared to other categories. Nearly seven in 10 Singaporeans have started setting aside more household savings for essential goods as a result of the pandemic. Based on the study, 60 percent of Singaporeans are also saving money for the future and tracking their expenses closely every month.
1 The Visa Consumer Payment Attitudes Study was conducted in October 2022 by CLEAR with 1,000 Singaporeans aged 18-65 years of age. This is part of a regional research project conducted in Southeast Asia on 6,550 consumers across 7 markets.
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at www.visa.com.sg