Credit card holders in Singapore lead the way globally in mobile payments usage according to a J.D. Power 2017 Singapore Credit Card Satisfaction Study. The study is based on responses from 2,903 credit card customers, covering 11 major credit card issuers in the market, was fielded in September-October 2017.
The study notes that usage of mobile payments linked to credit cards grew by 53% since last year to 40 percent-approximately the same levels as Hong Kong at 41 percent-in spite of rising security concerns associated with using mobile wallets. The republic's current usage is significantly higher than in the United States (23%) and Australia (14%) even as Singapore strives to become a cashless economy.
"Singapore cardholders are increasingly moving toward mobile payment platforms," said Anthony Chiam, Service Industry Practice Lead at J.D. Power. "However, in order for cardholders to fully embrace the adoption of these services, trust is paramount and security concerns must be first addressed."
Among those who declined to use mobile wallets, the lack of rewards and loyalty points (42 percent) as well as low merchant acceptance (20 percent) at retail stores/ restaurants were cited as reasons.
Additional findings include:
Most popular payment mode: With so many payment options available, credit card remains the most popular mode when paying for purchases in stores/ restaurants and online payments.
Online channels still popular: Interaction via websites has also grown to 83% this year from 76% last year. In contrast, usage of traditional channels is lower, with automated phone usage growing to 31% from 21% year over year and live phone interaction growing to 45% from 40%. Satisfaction among cardholders who use the online channel is lower than among those who use a mobile app (736 vs. 753, respectively).
American Express ranks highest in credit card satisfaction with an overall score of 781 and performs well across five of six factors. Standard Chartered ranks second with a score of 748, while DBS ranks third with a score of 737.