Jun 30, 2022
More than 5.9 million people live in Singapore, a globalised city serving as a strategic business development centre because of its corporate environment and internal connections. This city-state has excellent infrastructure, connectivity, outstanding logistics performance, and a cosmopolitan economy, making it an ideal spot for the development of e-commerce today as one of Southeast Asia's largest markets with more than 3 million users.
Singapore's young and hyperconnected population demonstrates how, over time, the mobile phone has grown into the preferred device for both work and leisure, especially after the pandemic. Online shoppers migrated beyond desktops and across national borders, increasingly adopting mobile as their shopping device. As of 2022, 92% of the Singapore population are internet users with a mobile connection of 147%, about 8.7 million active mobile subscriptions.
Through m-commerce and the technology savviness of its population, Singapore has blossomed into a mobile-first economy. According to Statista, mobile e-commerce revenues are expected to reach 6 billion in 2024, as a result of a rise in consumption, government support and a growing tendency to prefer online shopping. As part of the growth strategy, the government plans to launch two 5G networks by 2025, as it is believed to be the next generation of mobile internet connectivity, promising faster speeds.
Along with these trends, consumer behaviour also changed. Voice search, such as Google Assistant and Alexa, began to be used to make purchases, and payment alternatives beyond credit cards were chosen, such as transfers, e-wallets, contactless and QR codes, among others. These payment methods are gaining more popularity and simplify buying via mobile.
These technological changes and new consumer purchasing habits give companies reasons to look for innovations and strategies that provide a satisfactory experience designed mainly from a smartphone device. According to Statista, in 2021, there were already more than 1,390 fintechs operating in Singapore, the highest number among Southeast Asian countries due to its favourable environment for development, being one of the main financial centres worldwide. Among the main segments, cryptocurrencies lead the sector, followed by digital payments. Therefore, it is evident that m-commerce is only in its infancy and has room for growth alongside fintech development.
Due to the soaring frequency of use of these devices for m-commerce, more data is available to analyse. Companies like credolab use state-of-the-art proprietary technology to process metadata of mobile fingerprints, for example, and analyse user behaviour, respecting and protecting their privacy, to predict their probability of repaying a loan or detecting fraud. Credolab’s digital features allow it to understand its consumers better and adapt the company's strategies to provide the best user experience and facilitate consumer analysis.