1.Mobile Payment Players: Banks & FIs: PayLah, Dash, UOB Mighty, OCBC Pay Anyone Digital Giants: Apple Pay, Android Pay, Samsung Pay, AliPay, Wechat Pay, etc. Others: GrabPay, Uber, Starbucks, AirPay, etc. 2. Formula of Successful Mobile Payments: Learned from PayPal, AliPay, Wechat Pay etc., successful payment products need to bring relevance (strong user scenarios) and convenience (smooth user journey). Strong user scenarios: Offline, online, in-app; Restaurants, taxi, fast-food, stores, café, markets, e-commerce market places, app stores / google play, games, etc. Smooth user journey: DO NOT complicate payment flows w/ Counter Code, physical token 3. Some open discussions: Card schemes vs. direct bank connections; NFC vs. QR Code; Merchant QR Code vs. Customer QR Code;

1. Mobile Payment
Analysis of
Mobile Payments in
Singapore
Jerry CHI
jerrychixin@gmail.com
Jan 2018

2. Mobile Payment
Executive Summary
1. Mobile Payment Players:
• Banks & FIs: PayLah, Dash, UOB Mighty, OCBC Pay Anyone
• Digital Giants: Apple Pay, Android Pay, Samsung Pay, AliPay,
Wechat Pay, etc.
• Others: GrabPay, Uber, Starbucks, AirPay, etc.
2. Formula of Successful Mobile Payments:
Learned from PayPal, AliPay, Wechat Pay etc., successful payment products
need to bring relevance (strong user scenarios) and convenience (smooth
user journey).
• Strong user scenarios:
Offline, online, in-app;
Restaurants, taxi, fast-food, stores, café, markets, e-commerce market
places, app stores / google play, games, etc.
• Smooth user journey:
DO NOT complicate payment flows w/ Counter Code, physical token
3. Some open discussions:
• Card schemes vs. direct bank connections;
• NFC vs. QR Code;
• Merchant QR Code vs. Customer QR Code;

3. Mobile Payment
Banks & FIs Digital Giants Others
Dash by SCB
& SingTel
DBS PayLah! Apple Pay
Android Pay
Samsung
Pay
By SEA (Garena)
Merged into AliPay
Major Mobile Payments in Singapore
UOB Mighty
OCBC
Pay Anyone
Citi Pay Starbucks

4. Mobile Payment
Some global, regional and local players
Apple Pay Android Pay
Samsung
Pay
AliPay GrabPay
DBS
PayLah*
Dash*
User Base
(Global)
86m MAU
24m MAU,
50m+
downloads
34m MAU,
10m+
downloads
395m MAU
(mainly in
CN)
50m+
Android
downloads
500k+
Android
downloads
100k+
Android
downloads
App rating 4.2 4.7 3.4 4.5 3.4 3.2
NFC NFC NFC NFC & MST NFC
QR Code Y Y
SG QR
(NETS QR)
SG QR
P2P AliPay acct Mobile # Mobile # Mobile #
Scenarios
In-store,
online, in-app
In-store,
online, in-app
In-store,
online, in-app
In-store,
online, in-app
Mainly for
Grab
Mainly in-
store, online
Mainly in-
store, online
Funding
Source
/ Top Up
Credit Card,
Debit Card,
Prepaid,
Member
Card
Credit Card,
Debit Card,
Prepaid,
Member card
Credit Card,
Debit Card,
Prepaid,
Member card
Credit Card,
Debit Card,
Bank Acct
Credit Card,
Debit Card,
Android Pay,
AliPay
Credit Card,
Debit Card,
Bank Acct
Credit Card,
Debit Card,
Bank Acct,
Telco Billing
Notes
Touch ID,
SE,
Tokenization
Fingerprint,
HCE,
Tokenization
Fingerprint,
TrustZone,
Tokenization
Fingerprint,
Tokenization
Fingerprint Fingerprint
Notes:
Android downloads of UOB Mighty, OCBC Pay Anyone and Citi Pay: 100k+, 10k+, 1k+
PayLah, Dash, GrabPay haven’t specified whether they support tokenization in tech docs

5. Mobile Payment
Customer value to boom the two-sided markets:
Customers and Merchants
Mobile Payments
Learned from PayPal, AliPay, Wechat Pay etc., customer value is the
key driving force to enlarge customer base + merchant base and
increase transaction volume, successful payment products need to bring
strong user scenarios + smooth user journey.
Payment Gateways /
Processors

6. Mobile Payment
Formula of mobile payments:
Strong user scenarios + smooth user journeys
Relevance – Strong User Scenarios Convenience – Smooth Use Journeys
Can I use this mobile payment in the
following user scenarios?
Can I enjoy smooth user journeys
with this mobile payment?
Restaurants
Taxi
Fast-food
Stores
Café
Markets
Offline
Qoo10
Lazada
Amazon
AliExpress
Expedia
AirBnB
Online
App Store
Google Play
Gaming
Delivery
…
In-App Pay smoothly with:
DON’T complicate payment flows with:
Mobile #
Email
Social Network
…QR Code
Physical
Token
Counter Code
/ Merchant ID
Mobile payments bring customer value through relevance (strong user
scenarios) and convenience (smooth user journeys)

7. Mobile Payment
Major payment scenarios in Singapore
- Huge potential for mobile payments
Breakdown of how consumers make payments in select use cases
Consumer payments at-a-glance
The choice of payment instrument preferred by consumers varies
greatly according to circumstance. However, payments can be
broadly grouped into paper-based and electronic zones. The chart
below shows that consumers use cash in a wide variety of situations,
helping make Singapore unique among highly developed economies.
0% 20% 40% 60% 80% 100%
Wet market/ hawker centre
Small shops and neighbourhood
stores
Parents' allowance
Domestic helper salary
Taxis and car hire
Household repairs
24-hour convenience store
Private tuition
Paying friends
Fast food
Supermarket
Shopping mall
Dine-in restaurants
Medical bills
School fees
Local online shops
Government bills
Credit card bills
Household utilities
Recurring monthly lifestyle bills
Overseas online shops
Cash Cheque Kiosk
Credit & debit cards NETS cards eNETS and funds transfer
Electronic / mobile wallet Other (SVF, vouchers etc.)Others (SVF*, vouchers etc.)
*Stored value facility
E-payment
zone
Paper-
based
payment
zone
Will NFC
acquire
larger
share of
wallet in
card-
dominant
Scenarios?
Can QR Code boom in hawker centers, stores, among others?

8. Mobile Payment
Industry data from China mobile payment market
- High frequency scenarios
Currently, China has the largest mobile payment market. Chinese
consumers spent US$5.5 trillion via mobile payment platforms in 2016,
about 50 times more than their American counterparts
Mobile payments are largely driven by high frequency scenarios such as
Restaurant / fast food, taxi / transportation, shopping, Café, etc.
By end 2016

9. Mobile Payment
Industry success story
- What scenarios has Wechat Pay supported?
Leveraging Wechat’s 1
billion+ users, Wechat
Pay is the 2nd largest
mobile payment in China,
also the 2nd globally.

10. Mobile Payment
Local mobile payment leaders
- DBS PayLah’s Payment UI
1. Tap “Scan QR” after logging in PayLah;
2. Scan merchant’s QR code (NETS QR code);
Also support merchant to scan customer’s QR code
Bill Payment and Request for Funds are parallel to Scan QR;
3. Enter amount, review transactions, and confirm;
4. Complete payment;
1 2 3 4

11. Mobile Payment
Local mobile payment leaders
- GrabPay’s Payment UI
1. Launch Grab App, select GrabPay at the top-right corner;
2. Tap “Pay” on the top;
3. Scan merchant’s QR code, or select mobile #;
4. Enter intended amount;
5. Pay instantly;
1 2 3 4 5

12. Mobile Payment
Local mobile payment leaders
- Dash’s updated payment UI
Visa virtual
account
Visa PayWave
(NFC)
Scan QR to
Pay Legacy Counter
Code for non-
NFC phones
Taxi Payment Top up thru
SingTel Bill,
Bank Acct,
Credit/Debit
Dash’s current NFC-based and QR Code-based user journey is
much smoother than initial Counter Code-based version

13. Mobile Payment
Some open discussions
1. card schemes vs. direct bank connections
Issuing banks Issuing Banks
• AliPay & Wechat Pay directly linked to issuing banks (bypassed UnionPay), and AliPay
& Wechat replaced card schemes, and in many cases, gateways / processors as well.
• In Singapore though, mobile wallets / gateways by banks, digital giants and other
FinTechs are still largely partnering with card schemes by far.

14. Mobile Payment
Some open discussions
2. NFC vs. QR Code
Issuing banks Issuing Banks
• NFC currently leads in market penetration in Singapore, especially franchised retailers
• QR Code has huge potential in non-franchised segments such as hawker centers
QR Code NFC QR Code

15. Mobile Payment
QR Code is quickly catching up in Singapore
QR code to roll out to 120 hawker centres by 2018
Straits Times: Single QR code system at hawker
centres soon
Major banks in Singapore to use NETS QR code for cashless payments

16. Mobile Payment
Some open discussions
3. Merchant QR Code vs. Customer QR Code
Dash DBS PayLah GrabPay AliPay
Merchant QR
Code
Support? Yes Yes Yes Yes
UI entry
name
QR Code Scan QR Pay Scan
Customer QR
Code
Support? Yes Yes Yes
UI entry
name
My QR Request Pay
• Most mobile wallets using QR code support to scan merchants’ QR code
• Some mobile payment products also support customer QR code to be scanned by
merchants.
• Most mobile wallets using QR code avoid further complexity of user journey such as
requiring customers to enter Counter Code / merchant ID (which approved to be a bad
customer experience by Dash in earlier version)