PayPal survey shows online spend rising
A new PayPal survey shows that about 38 per cent of consumers in Singapore intend to spend more online this year, further fuelling a cross-border industry estimated to be worth S$1.2 billion (US$846.43 million) last year.
Mobile purchases also also expected to climb 42 per cent this year to generate more than $1.2 billion, accounting for almost a third of the overall online spend of $3.5 billion.
Total cross-border spending in Singapore is projected to climb 23 per cent year-on-year, according to the payment service’s survey which polled 800 respondents in Singapore as part of a global study covering 32 countries, including China and India.
Across the five Asia-Pacific markets, including Japan and Thailand, 68 per cent of respondents say they made a cross-border purchase on their smartphone in the past year. This was the highest among all regions in the survey.
Among Singapore shoppers who expect to spend more online this year, 78 per cent cite convenience as the main reason for doing so. About 500,000 consumers are estimated to have spent $1.2 billion in cross-border transactions last year, acquiring purchases worth $361 million from the US, $267 million from China, and $138 million from Japan.
Half of Singapore respondents say they trust online stores from other countries equally to local ones, making them the most confident shoppers in the region.
About 76 per cent of Singapore shoppers search overseas for better prices, while 61 per cent say they do so to acquire “hard-to-find” items. The top product categories this year are expected to be household goods with 21 per cent growth, as well as groceries, food and beverage, and alcohol, with a 15 per cent increase.