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Singapore to become a cashless society

Anuradha Shukla | Oct. 18, 2012
Seventy-one percent of Singaporeans aged 18-28 believe one day electronic payments will displace cash.

Seventy-one percent of Singaporeans 18-28 years of age believe one day electronic payments will displace cash and Singapore will become a cashless society.

This finding is evident from Visa's 'Connecting with the Millennials' survey, Gen Y (18 to 28 year olds) in Asia Pacific, Central Europe, Middle East and Africa.

Apparently, the young adults in the nation have become very financially savvy and on average they save up to 32 percent of their income with annual savings valued at US$300 billion.

The annual disposable income of Gen Y in the Asia Pacific region has been identified to be around US$900 billion and this figure is expected to grow steadily over the next 20 years.

Rajiv Biswas, Asia Pacific chief economist of IHS Global Insight says this increase in disposable income means Asian middle class household incomes are set to rise dramatically soon.

Making payments through mobile phones

Seventy-four percent of Singaporeans 18-28 years of age believe one day they will be able to make all payments through their mobile phones and 79 percent said one day they will be able to make all their purchases and bill payments online.

Over the last six months, 72 percent of Gen Y signed/ entered PIN at the store sales counter and 64 percent made direct online payment to a merchant website.

Thirty-eight percent of Singaporeans made contactless payment with a card over the last six months.

Also, 17 percent made mobile bill payments, air-time top up and purchases through mobile app and 12 percent made mobile contactless payment during the same period.

Currently six in 10 young adults are living debt free and 41 percent prefer debit cards so they can spend within their means.

 

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