Payment failures cost Singapore merchants $12b annually

APAC merchants lose an estimated $75b in transaction value due to payment inefficiencies.

Payment inefficiencies are impacting Singapore merchants’ competitiveness and costing them billions each year, warned Payoneer.

An estimated US$12b (S$15.25b) in annual value exposure is tied to payment inefficiencies impacting Singapore merchants, the report said. This includes payment failures, costs escalating, or funds being delayed.

Across Asia Pacific, an estimated US$72b (S$91.49b) in transaction value is lost each year due to breakdowns at checkout.

For Singapore, where many companies operate across multiple regional markets, these factors will play a growing role in determining competitiveness, Payoneer said.

“The ability to reduce friction at checkout and improve the flow of funds is likely to influence not just conversion rates, but overall business resilience in an increasingly cross-border digital economy,” it said.

Singapore-based businesses operate at the centre of regional trade flows and are increasingly built for cross-border scale, Payoneer said. Companies operating out of Singapore include regional online sellers targeting Southeast Asian customers and independent direct-to-consumer (DTC) brands shipping globally.

Cost transparency is one reason for payment inefficiencies. In Southeast Asia, 57% of consumers say they would increase cross-border purchases if fees were more transparent.

(US$1 = S$1.27)