Adyen, a leading financial technology platform, has unveiled Chapter 2 of its Adyen Index 2026 Singapore Retail Report, highlighting a paradox in AI adoption among Singaporean consumers and merchants. Whilst 72% of Singaporeans use AI assistants for shopping, only 29% are comfortable allowing AI to complete purchases, revealing a significant trust gap at the payment stage.
The report, titled “The Agentic Paradox,” underscores the tension in Singapore’s retail sector, where AI adoption is high, yet trust remains low. Despite AI-referred visitors generating 53% more revenue per visit, 36% of merchants hesitate to adopt AI broadly due to fears of losing direct customer relationships and brand control. Ben Wong, Adyen’s General Manager for Southeast Asia and Hong Kong, noted, “Adoption is not the same as trust. Hesitation takes over the moment money changes hands.”
AI adoption is notably higher among younger, higher-income males, with Gen Z and Millennials leading usage. Parents with children under 18 are identified as power users, spending more on social media purchases and being more open to AI-completed transactions.
As AI reliance grows, Singaporeans are cautious, with 49% using biometrics for transaction authentication. The report suggests that whilst AI integration will continue to accelerate, merchants must focus on building trust to succeed in the evolving retail landscape.
