Singaporeans lead in digital wallet adoption but AI commerce trust lags

Mobile wallets are now the preferred way to pay when travelling.

Singaporeans are amongst the most enthusiastic adopters of integrated digital wallet experiences globally, but privacy concerns and a preference for human control are holding back full adoption of AI-powered commerce, according to a study by Ant International in partnership with S&P Global.

The study, which surveyed 6,000 consumers across nine markets in Asia, Europe and the United States, found that consumers from Singapore, China, Thailand and Malaysia show stronger demand for integrated experiences within a single app than counterparts in Japan, Germany and Western markets.

The findings point to a growing gap between consumer expectations for seamless mobile payments and the infrastructure available to support them.

Mobile payments are now the preferred method for everyday in-destination spending, with 63% of consumers already using them for most transactions whilst travelling. 

Yet friction persists. More than half cite concerns around transaction security at 62%, exchange rates and fees at 56% and merchant acceptance at 53%. One in four still carry cash as a fallback.

Spending patterns are shifting toward local experiences. Food and beverage and local attractions now see the largest increase in traveller spending at 67% and 66% respectively, with more than half spending more at local shops and eateries than at malls or chain restaurants.

Some 81% of consumers use AI tools for travel discovery and planning, but only 26% expressed interest in using AI for payments and autonomous decision-making. 

Privacy concerns remain high at 43%, whilst two in five say they prefer planning travel themselves and a third cite a preference for human advice.