Compare the top 5 payment processing companies & services in Singapore 2024

Payment processing software is essential for businesses looking to accept all sorts of digital payments securely. With 93% of Singaporeans using electronic payments¹ and 70% of consumers in Asia-Pacific paying by e-wallets today², it’s important to choose a system that caters to consumers’ preferred payment methods, especially if you sell to international customers. 

Read on to find out the top payment processing companies in Singapore and how to choose the one that’s right for your business. We’ll also share why Airwallex’s global reach and support for 160+ local payment methods can be useful to businesses who want to enter new markets quickly.

What are payment processing companies and services? 

Payment processing companies and services are systems that allow businesses to accept digital payments from customers. Also known as payment gateway companies, these tech firms allow businesses to offer a wide range of payment methods like cards, mobile wallets, buy-now-pay-later (BNPL), and more. They also facilitate the transfer of funds from customer accounts into your business bank account.

Most payment processing companies offer credit and debit card payments such as Visa or Mastercard, while only a few support alternative payment methods like GrabPay or AliPay. With digital wallet payments estimated to grow by 14.9% worldwide in 2027 and credit card use projected to decline³, it’s more important than ever to have a payment gateway that offers a wide variety of local payment methods. Not only can it boost your revenue, but it can also help you convert the 77% of customers who would abandon their cart⁴ if their preferred payment method is unavailable. 

How does payment processing work?

Payment processing involves facilitating financial transactions between businesses and their customers. 

When your customer pays for a product or service, the payment processing company transmits the customer’s payment information to your business account. They do this through a product called a payment gateway. The payment processing company will then forward the payment to the customer’s issuing bank for authorisation. 

Once your customer’s funds have been verified and approved, the payment is processed. Your business will notify the customer that their payment was successful.

Top 5 payment processing software in 2024

Businesses in Singapore have several payment processing software to choose from. In this analysis, we’ll take you through the 5 most prominent options. 

Adyen

Adyen Singapore is a payments platform that allows businesses to accept payments online and in store. They have been operating in Singapore since 2015 and offer businesses a payment gateway and point-of-sale (POS) terminals. Adyen also has a solution for omnichannel sales, which means you can see your online and in-store payments in one platform. 

Airwallex

Airwallex is an end-to-end financial platform that helps businesses of all sizes streamline global payments and financial operations. Our comprehensive payment solutions include cross-border transfers, corporate cards, and more. Airwallex’s payment gateway solution helps you enter new markets faster by enabling payment acceptance from 180+ countries and 160+ local payment methods, such as AliPay in China or ACH direct debit in the USA. We’re also the only payment gateway in Singapore that offers like-for-like settlement in 11 currencies. When you get paid by customers in these 11 currencies, these are held in your Airwallex account without unnecessary conversion to SGD.  This means you can accept payments from USA customers in USD, hold it in your Airwallex account, and use these funds to pay suppliers in USD. In the process, you eliminate unwanted conversion fees and maximise your profits. 

Airwallex’s payments platform integrates via no-code payment links and plugins for eCommerce platforms such as Shopify, WooCommerce, and Magento to fully customizable checkout experiences with native APIs, enabling teams to operate seamlessly across borders. 

PayPal

PayPal is one of the oldest and most-recognised digital payment platforms. Unlike the other payment processing companies, PayPal offers digital wallets to consumers, allowing them to pay directly using their PayPal balance.  Businesses can also use PayPal to process payments through credit cards, debit cards, and bank transfers. 

Shopify Payments

Shopify Payments is the built-in payment service for Shopify merchants. They allow Shopify businesses to accept payments without the fees and complexity involved with integrating third party payment processing companies. However, Shopify for retail is not supported in markets like Malaysia or Indonesia.⁵ There is also limited support for local payment methods; in Singapore for example, third-party integrations with platforms like Airwallex are needed to support merchants with methods such as PayNow.⁶ Airwallex supports 160+ local payment methods worldwide.

Stripe

Stripe Singapore is a payment processing service that lets businesses collect payments online and in-store. Like Adyen, Stripe offers a payment gateway and POS terminals. They also have custom analytics tools and an A/B testing feature that lets you test different payment methods on a subsection of your customers. 

Top features to look for in payment processing software

Choosing the right payment processing software can be a business-critical decision. The best providers are easy to use, secure and flexible. Here’s a quick overview of the features to look out for: 

Global coverage. If you’re planning to grow your global customer base, look for a service that supports payment systems in different countries and processes payments from a wide range of currencies. It’s especially important to use a payment processor that supports the markets you’re planning to expand into. 

Integration capabilities. No-code plugins, hosted payment pages, or pre-built UIs help you integrate the payment gateway with minimal developer resources. For a full checkout experience, find a provider with APIs that let you build in the back-end or help you accept payments via your mobile app. 

Security and fraud protection. Avoid costly chargeback fees with features like 3DS and machine-learning risk engines. This helps you minimise fraudulent transactions and maximise your global acceptance rates.  

 Multi-currency support and like-for-like settlement. Many payment processing companies let you display prices in local currencies. However, they automatically convert the currency into your home currency. Look for a provider that offers like-for-like settlement, so you can minimise unwanted conversion to SGD and save on fees.

Payment processing fees. The fee structure differs between providers and payment methods. Don’t forget about hidden fees when collecting money in multiple currencies; this can really affect the profit margins from international revenue.

Compare the top 5 payment processing companies in Singapore

Now that we’ve covered the important features to evaluate in a payment processing company, let’s take a look at how the top 5 options in Singapore compare against each other.

How can you reduce payment processing fees? 

Reducing payment processing fees is essential for businesses looking to protect their operating profit.

The good news is there are lots of ways you can reduce your processing fees, from choosing the right pricing model to avoiding hidden international fees and using ACH direct debit for automated payments.

Even small reductions in fees can result in significant savings when processing a high volume of transactions. Here are some ways you can keep costs down:

• Understand your needs. Begin by assessing the volume and type of transactions your business processes. Providers offer several pricing models, including fixed-rate, interchange-plus and subscription-based models. For smaller transactions, a provider that charges a small fixed rate might be better. For larger volumes, you might get more cost savings with interchange-plus pricing - a combination of basic fees set by card networks (like Visa or Mastercard) with a small fee from the payment processor.

• Minimise international fees. If you're operating internationally, look for providers like Airwallex that offer like-for-like settlement. Avoiding unnecessary conversion fees can lead to significant savings.

• Be wary of long-term contracts. Look for providers with a pay-per-transaction model, so you only pay for transactions you process. Some payment gateways even can offer custom rates depending on your volume, region or business model.

• Get clear on chargebacks. Chargebacks can be tricky to manage because customers can initiate them whenever they feel they are entitled to a refund. They not only result in lost revenue but also incur additional fees. Find a partner with a good chargeback facilitation process, and implement clear communication with customers, transparent refund policies and robust fraud detection measures to minimise chargebacks.

• Regularly review your payment processing costs. Payment processing fees can change and new offers or providers may emerge. Regularly review your options and stay informed about industry rates to ensure you're always getting the best deal.

What questions should you ask when onboarding a payment processing company?

It’s important you understand the payment processing system you’re considering, and whether it’s right for your business’ operational needs, budget and growth plans.

Asking the right questions will help you build a clear picture of what to expect. Here are 10 common questions, which should provide the information to help you make an informed decision:

• What are your transaction fees? Ask your potential new provider about all possible fees, including transaction fees, monthly fees, setup fees, conversion fees and any hidden charges. Knowing exactly what you’ll be paying for each transaction and any additional costs can help you budget more effectively. For example, at Airwallex, businesses often ask us to forecast costs.

• Are there any long-term contracts or early termination fees? Some providers may require you to commit to a long-term contract, which could include early termination fees if you decide to switch providers.

• What local payment methods do you support? Ensure the provider has the global coverage to accept payments in all markets you sell to and support the local payment methods your customers prefer, such as WeChat Pay, Alipay and more.

• How long does it take for funds to be settled? The settlement period can impact your cash flow, so ask how long it typically takes for funds from transactions to be deposited into your account.

• What security measures and compliance standards do you have in place? Every time you take a credit card payment, you’re handling sensitive financial information. Ask about the provider’s security policies, protocols, fraud prevention measures, authorisation rates and compliance with standards to protect your customers' data. After all, a poor payment experience may damage your brand's reputation.

• Is your system compatible with our current business software? Seamless integrations with your existing eCommerce platform is essential for efficient payment and streamlined operations. You also want a provider that integrates seamlessly with your accounting software for easier bookkeeping and reconciliation.

• Can you handle multi-currency transactions? If you accept payments from customers in different countries, you’ll need to know if the provider supports multi-currency transactions and what the fees are for currency conversion.

• What is your policy on chargebacks? Understanding the provider’s process for dealing with chargebacks and whether they offer any support or protection can save you money in the future.

• Do you offer other services? Some providers like Airwallex offer additional services like multi-currency accounts and corporate cards. Knowing what’s available can help you get the most out of your payment processing solution.

• Do you have a customer support team based in Singapore? Many providers have overseas-based support teams. A Singapore-based support team can provide faster response times and have a better understanding of local regulations to address issues like chargebacks. 

Why choose Airwallex for your payment processing? 

If you’re looking for a better way to manage payments from local and international customers,Airwallex is hard to beat. We’re an end-to-end payments solution built to support businesses with their financial operations, through services like our Global Accounts, FX and transfers, expense management, and corporate cards.  

Airwallex offers the only payment gateway in Singapore that lets you collect and settle payments in 11 leading currencies, including USD, EUR, and HKD.  You can hold these funds in your Airwallex multi-currency account, and pay out to suppliers in the same currencies without unwanted conversions into SGD. This saves you unnecessary currency conversions and maximise the value of every dollar you earn.   

As a global company, we have the infrastructure that allows you to accept payments from 180+ countries and offer 160+ local payment methods your customers trust. Examples include  WeChat Pay and Alipay in China (APAC), Pay by Bank app (PbBa) in the UK, and ACH direct debit in the USA.

If you’re already using Shopify, Magento, or WooCommerce, we have no-code plugins that let you instantly accept payments. We also have APIs that allow you to create a fully customised checkout experience.

Airwallex is more than a payment gateway too. We have 60+ payment licences worldwide, which makes us well-positioned to help you with your financial operations globally. With the Airwallex Business Account, you can instantly open 23+ local currency accounts with local bank details, make low-fee international transfers, or instantly issue debit cards to your teams.

Singapore businesses like Wine Kin, Dreamcore, and Igloohome have used Airwallex to process payments. Open a free Airwallex Business Account today and start accepting payments globally.

FAQs

What is payment processing software?

A payment processing software is a programme that helps businesses accept online payments. These tools are usually cloud-based and send financial information from your customer’s card to your bank and the customer’s bank. 

What important factors to choose when selecting a payment processing solution?

When selecting a payment processing solution, prioritise factors like ease of integration, supported payment methods, and competitive fees. Also look at fraud protection, compliance with local regulations, and scalability to grow with your business. 

How much does it cost to onboard a payment processing software?

Pricing varies between providers and the type of transaction. Some offer subscription plans, while others operate on a flat-rate model. Don’t forget there are often hidden fees for international payments. 

How safe are payment processing services?

Secure payment processing software should include fraud prevention systems, end-to-end data encryption and be compliant with PCI DSS (the global security standard for organisations that store and process sensitive data).

Sources

1) https://www.statista.com/topics/9794/digital-payments-in-singapore/#topicOverview

2) https://fintechnews.sg/96605/payments/e-wallets-set-to-dominate-singapores-online-payments-by-2027-says-worldpay/

3) https://www.statista.com/statistics/1111233/payment-method-usage-transaction-volume-share-worldwide/)

4) https://www.airwallex.com/newsroom/cross-border-ecommerce-2024-report

5) https://help.shopify.com/en/manual/payments/shopify-payments/supported-countries

6) https://help.shopify.com/en/manual/payments/shopify-payments/supported-countries/singapore

7) https://docs.adyen.com/online-payments/

8) https://www.paypal.com/sg/business

9) https://help.shopify.com/en/manual/payments/shopify-payments/supported-countries/singapore

10) https://stripe.com/en-sg

11) https://www.adyen.com/payment-methods?country=Singapore

12) https://help.shopify.com/en/manual/payments/shopify-payments/local-payment-methods

13) https://stripe.com/sg/payments/payment-methods#search