The fintech firm Adyen has launched its 2024 Retail Report, featuring insights from over 38,000 shoppers and 13,000 merchants across 26 markets. It provides a detailed understanding of the latest consumer and retailer behaviours, preferences and trends. Key insights from the report highlight interesting shifts in Singapore's retail landscape in response to evolving shopping and payment trends.
Findings reveal that nearly half (47%) of Singapore's respondents are comfortable using QR codes, which is notably higher than the global average of 27%. Almost a third (31%) reported that they no longer carry a wallet, reflecting the country's fast-paced move towards cashless transactions. Simultaneously, 40% of retailers express difficulty in categorizing customer behaviours and needs, indicative of the growing demand for personalized shopping experiences.
Adding to these trends is the concerning rise in fraud attempts, with more than half (52%) of Singaporean businesses reporting an increase over the past year. This is a significant climb from the global average reported at 41%, underscoring the urgent need for improved security measures in the digital payment sector.
Warren Hayashi, Asia-Pacific President at Adyen emphasized the core importance of diversifying payment methods for businesses to remain competitive in current market conditions. He suggested that technologies enabling such digital transformation would offer businesses improved insights into consumer behaviour. This, in turn, can aid in optimising strategies across both online and offline channels.
Hayashi further highlighted how evolving trends and developments within the payment industry can influence retail growth. These trends will not only shape Singapore's retail landscape but extend impact across the Asia-Pacific region. Furthermore, he encouraged businesses to respond proactively to the ever-evolving demands of consumers for personalized experiences across all retail channels.
On a global scale, Adyen's Retail Report exposes the dramatic loss reported by the retail sector due to fraud in 2023, totalling at an alarming US$429 billion. Luxury fashion retailers felt the hit significantly with losses amounting to US$3.97 million each and health and beauty brands lost US$3.94 million each. This trend coincides with the rise of new technologies to help combat fraud, such as network tokenization, which one in five Singapore businesses are now leveraging to facilitate seamless payments while boosting security.
Hayashi concluded that the rapidly evolving payment landscape brings both opportunities and challenges. He stated that businesses which successfully keep pace with consumer expectations – such as offering a personalised shopping experience and convenient, secure payment methods – would reap substantial rewards in terms of top-line revenue growth.
In its essence, the Adyen Retail Index emphasizes that providers should brace themselves for the continuous wave of digital transformations, by aligning their strategies to the changing consumer behaviours.