Singapore's mobile commerce (m-commerce) market is expected to grow by 33 percent in the next five years, according to Worldpay's annual Global Payments Report.
Cross-border shopping is also becoming increasingly popular, with more than half of online consumers in the republic buying from international merchants.
This is despite the fact that the growth of Singapore's e-commerce market is set slow as 73 percent of its internet users are currently shopping online. Worldpay predicts the Singapore's online commerce market will grow by 9 percent, while that sector in China and India are expected to expand by 11 percent and 24 percent respectively.
In terms of payments, two-thirds (66 percent) of Singapore shoppers still prefer paying with credit cards. However, bank transfers (11 percent) and e-wallets (13 percent) are gaining traction, and the use of those two alternative payment methods is forecasted to nearly double in share by 2021 to 21 percent each.
"Retailers looking for a foothold in the future must prepare to deliver on a new set of demands in Singapore," says Phil Pomford, general manager for Asia Pacific at Worldpay.
"Merchants must create mobile-friendly payments so that shoppers always get a simple and secure checkout experience. To capture more cross-border trade, merchants should offer a variety of currencies and payment options to help online shoppers feel comfortable and confident during the checkout process. Our report also uncovered that 70 percent of Singaporean internet users would shop online more if offered loyalty benefits - a great tip for e-commerce businesses looking to gain a competitive edge in the fight for share-of-wallet amongst Singaporean shoppers," he adds.
In addition to Pomford's advice, the report also provides other tips for merchants looking to capitalise on the e-commerce and m-commerce markets in Singapore and the region.
For instance, Worldpay suggests offering one-click ordering to make online checkout as seamless as possible.
Merchants should also consider the most popular payments methods in each territory, and prioritise those that complement their business model as there is no one-size-fits-all model in the Asia Pacific region.
Besides that, retailers should ensure they have local acquiring capabilities wherever they have a legal entity and offer local language customer support in their customers' time zone when offering cross-border trade.