7 minute read
Local shoppers slow down on digital
Singapore is not yet “all in” on non-cash payments
Local shoppers slow down on digital payments, as others accelerate
The pandemic has seen Singaporeans reduce their reliance on cash, but not by as much as the fintech community would have predicted.
Singaporeans still love their cash, Corona cash aversion should have Among to online shopping for the first time. despite efforts to use digital killed it off? Perhaps one reason developed Consequently, all forms of payments over the course of could be that Singapore’s main economies, electronic peer-to-peer and the pandemic, a survey by McKinsey non-cash mobile payment option, Singapore has consumer-to-business payments has shown. In fact, far from being a GrabPay, has yet to see widespread been relatively have been expanded. In many digital trailblazer, the move towards use in the city-state. slow to reduce regions, this has mostly benefited a cashless society seems to have Globally in retail, the impact its dependence debit cards, which typically align hit some relative roadblocks in of Corona was not a sustained, on cash with lower-value transactions and Singapore, as evidenced by a slower decline but much more a shift in transactions. are a logical cash substitute for adoption rate for digital payments consumer buying behaviour. In contact-averse consumers. In Asia, compared to global peers and even the first six months of the year, however, alternative payments, neighbouring Malaysia. McKlnsey noted consumers spent such as instant and mobile
In 2010, 41% of transactions in $347 billion online with US retailers, payments, have grown, while credit Singapore were already digital or up 30% from the same period in cards have retained their strong non-cash, and by 2020 this had risen 2019—corresponding to six times incumbent position. to 61%, which on the face of it looks the annualised 2019 growth rate Perhaps another reason why like an impressive transition. Yet, the of online retail. Amazon, which cash has not been as impacted in United States moved from 49% to operates in Singapore, showed its Singapore as other parts of the world, 78% over the same period, and even second quarter global sales grew is that the banks have kept ther neighbouring Malaysia moved its 40% boosted in particular by the branches open and ATM’s working. low base of 7% to 28%. tripling of grocery sales. And In In contrast, may other countries have
So why is cash so sticky in Europe, differences between age seen branches shut “temporarily” Singapore, when the technology groups eroded as many consumers due to COVID-19. ATM usage fell exists to circumvent its use and the (in particular, older shoppers) turned by 47% in April, 2020 in India, while
Growth rate of electronic transactions
Source: BCA, McKinsey
the United Kingdom experienced 46% declines per month on average from March to July, 2020.
In Australia, the top four banks have removed 2,150 ATM terminals and closed 175 bank branches since June 4. McKinsey expects that by the end of 2020, there will be a shift of four to five percentage points in the share of global payment transactions executed via cash. “This is equivalent to four to five times the annual decrease in cash usage observed over the last few years”.
Reet Chaudhuri, leader of McKinsey’s Asia Payments Practice and report author said: “COVID-19 has led to changes in payment preference and patterns in Asia at an unimaginable speed. Players in
Singaporean banks have maintained their branch and ATM networks in the face of the pandemic
the industry need to recognise these changes and adapt quickly to stay relevant, as well as to capture growth opportunities. Digitalisation is going to play a huge role in this process and support from governments in Asia is going to be vital in ensuring a smooth transition.”
The firm’s analysis of 2020 paints a contrast between the first and second halves of the year—namely, an estimated 22% payments revenue decline in the first half will be softened somewhat by stronger performance in the second half. “Still, we expect full-year 2020 global payments revenue to be roughly 7% lower than it was in 2019—a $140-billion decline roughly equal to recent years’ annual gains, and 11% to 13%t below our pre- pandemic projection.
We believe a connected future is a sustainable future
Create a hyperconnected healthcare system with ISPPC hospital group Transform Las Vegas into a smart city Revolutionize the fan experience at the Tour de France
Protect rhinos with Connected Conservation Modernize omnichannel CX platform with Tele-centre Services
Together we do great things
SP Jain launches proprietary ELO technology at its Singapore campus With the pandemic bringing everything to a standstill, universities all over the world are racing to adapt their programs and classes to online alternatives.
grow, while being confined in the safety of their homes.
SP Jain’s ELO technology was launched in late 2018, with the objective of making its internationally recognised MBA program accessible to working professionals who wouldn’t have the flexibility of pursuing an on-campus course.
The technology makes it possible for students to follow a customised learning path, which can include flexibility to interchange between face-to-face and online modes of learning. Many students strongly prefer pursuing the course via a more traditional face-to-face learning
ELO revolutionizes online learning by bringing the dynamism and engagement of a virtual classroom online module, while others may prefer the fully online EMBA, and yet others who may prefer a combination of both. High-end online learning ELO is a high-end online learning system that replicates a live classroom down to In this landscape, SP Jain School of Global Management, an Australian business school, has emerged as ELO is a high-end online learning system that replicates a live classroom down to its last detail The ELO technology is advantageous to students as they do not necessarily have to visit the campus to attend; they can log in from any corner of the world and get all the benefits of an on-campus education, including one-on-one discussions and a game-changer, by implementing a its last detail. The ELO studio is set up group engagement with faculty and unique proprietary Engaged Learning with a robotic tracking camera for the peers. The student’s response to this Online (ELO) technology, developed in faculty, allowing them to move freely, technology has also been very positive. anticipation of the need for high quality maintain eye contact with students, Following its success with the EMBA and customized online education. respond to their visual cues, moderate program, SP Jain plans to expand its ELO
ELO is a one-of-a-kind virtual learning discussions and more, all in real-time. offering to include executive education platform that revolutionizes online Faculty and students are able to engage programs, as well as short courses for learning by bringing the dynamism and in one-on-one conversations as if they working professionals across the globe. engagement of a virtual classroom online, were sitting side-by-side. This produces The school also aims for its students from and in real time. The platform is currently a great opportunity for students even in all over the world to be able to utilise this used by the Executive MBA (EMBA) the midst of the pandemic, to learn and technology. students of the school, and is also being accessed in its Singapore campus.
Currently, only a handful of top business schools in the world offer such immersive online experiences to their students, with SP Jain being the only business school within the Asia Pacific to do so.
The ELO platform adopts a more proactive approach to addressing the wide gaps left by online education in student engagement and motivation. Using some of today’s most cutting-edge learning technologies, ELO has been able to bring to life an actual classroom-like experience to the homes and workspaces of the students. SP Jain is the only business school in APAC to provide immersive online learning to students
