Consumer payment behaviour and preferences among tertiary students in Singapore

• Main Authors: DSouza, Charisse Ann, Ren, Jie, Wong, Lilian Gui Chin
• Other Authors: Tan Khye Chong
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Social sciences::Statistics; DRNTU::Social sciences::Economic theory; DRNTU::Social sciences::Economic development::Singapore
• Online Access: http://hdl.handle.net/10356/51408
• Institution: Nanyang Technological University

Many developed societies are experiencing trends in declining cash usage. The objective of this study is to examine whether there has been a decline in cash usage, an increase in non-cash payments and reasons behind payment method choices in Singapore. No such comprehensive study about consumer payment behaviour has been conducted in Singapore. This study uses primary research data to examine trends in consumer payment behaviour among tertiary students in Singapore. As no time series data is available for comparison, this study uses a sample of recent graduates as a proxy for observation of trends. This report assumes that once rational students graduate and start earning, they investigate all the payment methods available to optimize payment decisions. While cash remains the most preferred payment method among tertiary students and recent graduates, this report has observed a trend toward increased card payments such as ATM, credit and debit cards. There has also been a trend toward increased credit card usage after tertiary students, graduate and enter the workforce. This change in behaviour has many policy implications. Increased credit card usage is known to have inflationary consequences. In order to regulate and influence payment behaviour, this report also examines the consumer motivations drive this behaviour. This study shows that the choice of payment method is influenced by goods or services purchased, the transaction amount and lastly, other motivating factors such as convenience, security etc. This paper also reveals a trend toward increased preferences for online and smartphone-based payment methods. Government regulation must evolve in line with evolving internet-based payment methods.