Singapore’s Six Digital Megatrends: How to meet consumer expectations

We at Wirecard are always exploring the latest payment and consumer trends. Hot on the heels of our recent Retail 2020 report which took a closer look at emerging technologies that create exciting new shopping experiences, the latest of our APAC Megatrends Reports has identified six key areas that Singaporean businesses need to be aware of in the coming year.

We’ve highlighted some of the research’s most interesting findings here and if you want more details click on the link at the bottom of the article to sign up for the full report.

Megatrend 1: Super Apps

Embrace the Super Apps

Super Apps are stand-alone, multi-service mobile applications that enable users to perform several functions on a single platform. Some of the popular Super Apps are WeChat, Alipay, Grab, and Gojek. All Super Apps started with a single function but they’ve rapidly grown to serve multiple use cases. And consumers want more from them.

88% of users are willing to do more through Super Apps, driven by the practical desire to save time (72%) and reduce costs (69%). Loyalty benefits (66%) are another key driver.

And while they’re starting to re-shape some markets already, with such a positive response from users, it’s clear Super Apps have great potential to disrupt markets further.

Our research shows people are currently using mostly basic functions right now – transport (82%), food (69%), etc. – but they actively want to broaden their use over the coming year to do things like buy tickets (40%) and book hotels (37%).

Despite this enthusiasm, though, security concerns still hold people back from using Super Apps, especially older users. On that basis businesses have to ensure they are not just implementing comprehensive security measures, but they’re communicating their security credentials effectively to build consumer trust.

Megatrend 2: Voice Assistants & AI

Listen out for interactive voice assistants

Not a brand-new technology, per se, but awareness, adoption and satisfaction with the growing array of intelligent virtual assistants (IVAs) in Singapore can’t be ignored.

IVAs like Siri, Bixby, Alexa, etc, are already known to 41% of the population, and of those we explained them to in our interviews, 62% expressed an interest in buying one.

90% of IVA users are really pleased with their experience, paving the way for the technology to revolutionize home automation. Developing a proactive IVA strategy could soon become an essential requirement for businesses.

Megatrend 3: Consumer Experience

Stand out from the competition with a positive customer experience

You won’t be surprised to read that people expect a great experience, but you might be shocked to learn 78% of Singaporeans would abandon a brand after a bad experience. Conversely, 60% are willing to pay more for a high-quality experience.

Businesses are not keeping pace with consumer expectations, resulting in a notable gap between expectation and reality. In healthcare the gap is 20%, in banking it’s 19% and for insurance it’s 18%, but none of the sectors we surveyed had managed to match or exceed consumer expectations.

There’s an opportunity to differentiate on service and drive positive word of mouth recommendations, but there’s also a real risk for those businesses continuing to overlook customer experience in favour of the bottom line.

Megatrend 4: Omnichannel

Focus on frictionless experiences

Singaporean consumers expect to shop seamlessly across channels and expect retailers to provide a frictionless, unified commerce experience.

78% of consumer purchases in Singapore start with online research. 58% of purchases are online. 74% of Singaporeans prefer to have their purchases delivered to their homes. 54% prefer to return things to a store.

But this desire for omnichannel usage is not reflected in the way businesses set themselves up and it’s frustrating for their customers. There’s a pressing need for businesses to narrow the gap between physical and digital touchpoints, especially as frictionless experiences become increasingly commonplace.

Banking (46%) is the sector in which Singaporeans most want a seamless experience, but it’s by no means the only market facing this demand. Harnessing big data to understand and create the optimum experience must be a key concern for businesses over the coming year.

Megatrend 5: Data & Personalization

Be transparent in order to build trust and confidence

Singaporean consumers are willing to provide their personal data to businesses, provided they get something relevant and useful in return.

This could include discounts (45%) or reward-based incentives (39%), and access to priority services (32%).

But just as importantly, they expect businesses to act responsibly with their personal data – from gathering transparently through to managing it securely. Key concerns for consumers around their data include third party access (74%), data storage and management (70%) and becoming subjected to more marketing activity (60%).

And security concerns surrounding digital payments have a major influence on consumer adoption of new payment methods, with 49% citing it as a deterrent.

Building trust and confidence amongst consumers is key here. Businesses should leverage on their safeguarding of data as a competitive differentiator, instead of treating it as another regulation to follow.

Megatrend 6: Future of Digital Payments

Enable new ways to pay

Singaporean’s willingness to explore new tech sets them apart from other markets.

For example, current adoption of voice-activated payments, such as Amazon Pay via Alexa, stands at 14% in our survey. However, 34% of respondents stated that they intend to adopt this technology in the future. Similarly, social commerce adoption is set to grow throughout 2020 from 28% to 32%.

Clearly, these new methods are likely to pose challenges for payment providers, but as the demand for a seamless, unified commerce experiences continue to grow there’s a real need to evaluate security against user experience and find ways to make both work.

The Six Digital Megatrends Report is based on the results of Consumer Digital Outlook Survey carried out by Blackbox Research on behalf of Wirecard in February 2020. A total of 1,007 Singaporeans across all demographic groups were surveyed. For further insight and more information about Singaporean consumers’ attitudes, preferences and perceptions towards digitalization in various aspects of their everyday lives, download the Six Digital Megatrends Report.

Wirecard is constantly exploring new and emerging trends affecting the payments industry. The recent Singapore report complements Wirecard’s Retail 2020 survey which explains why technology is such an important part of new shopping experiences. In the new age of retail, retailers need to rethink their usage of new technologies and payment solutions to create a seamless, simplified, and secure experience for consumers. For more information about the digital future of retail, visit our landing page.