Making a case for a Unified POS
The October 2015 DBS Asian Insights Report “E-Commerce In Asia: Bracing for Digital Disruption” noted that AT Kearney estimates 47% of online retail sales in Singapore coming from players outside Singapore and ASEAN. The report attributes this to several factors including the high convenience of shopping in the many malls, the fact that tourist spending is mostly done in offline locations and the absence of a strong local e-commerce player.
Statistics portal, Statista, estimates that Singapore domestic revenue from e-Commerce will reach US$2.9 billion in 2016, and predicts that market will experience compound annual growth rate (CAGR 2016-2021) of 11.4% nearly doubling 2016 figures to reach US$5.1 billion by 2021. The portal also estimates that user penetration in 2016 stood at 61.4 % and predicts this to rise to hit 80.9% in 2021. Average revenue per user (ARPU) is currently pegged at US$1,021.59.
In this exclusive interview with Fintech Innovation, Anthony Koh, CEO, Mobile Credit Payment Pte Ltd, believes that as the consumers adopt different payment methods this will constraint merchants looking to contain rising operating costs, borderless competition from e-Commerce players, regulation, and the need to stay connected and relevant to customers.
He observes that merchants are slow in adapting to these changes. He also believed that these merchants are looking for economies of scale for such technology to be deployed into the market generally so that it makes sense for the businesses to adopt such technology.
He believed that a Unified Point of Sale (POS) is a practical solution that consumers and merchants will welcome as it reduces the costs for merchants.