2024 Payments Megatrends for Asia-Pacific

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    Thanks to embedded experiences and super-apps, digital wallets are now driving e-commerce payment experiences in Asia:

    • Digital wallets had 23% share of POS payments in Thailand in 2022 and 25% share of e-commerce payments

    • Digital wallets had 23% share of POS payments in China in 2022 and 81% share of e-commerce payments

    • Digital wallets had 56% share of POS payments in the Philippines in 2022 and 81% share of e-commerce payments

    Overall, digital wallets have a 73% share of e-commerce payments in Asia, compared to just 15% for cards, 6% for A2A (account to account) and 6% for others.

    This digital wallet dominance was part of the stage-setting for PCMI’s recent webinar on megatrends in Asia-Pacific payments, which in turn was part of a series that also covered the Americas and EMEA (Europe, Middle East and Africa).

    After showing how wallets are the top choice for e-commerce and POS payments, PCMI’s expert panel deepened their discussion by offering profiles of 5 key country clusters in APAC, such as:

    • The Giants (India and China)

    • The Treasury Centers (Hong Kong and Singapore)

    • The Mature Markets (Korea and Japan)

    • SEA Block (Malaysia, Indonesia, The Philippines, Vietnam and Thailand)

    • The Pacific (Australia and New Zealand)

    For each of these markets, PCMI’s panel revealed a breakdown of top payment methods, such as this one for Singapore, which shows them for both POS and e-commerce:

    Singapore: payment methods for e-commerce purchases and for POS purchases, 2022 vs. 2017. Source: Worldpay by FIS.

    Broadening Horizons

    After this granular analysis of payments in each of these APAC markets, PCMI’s expert panel shifted focus to the broader trends affecting them in general. Here’s a quick breakdown of what it covered:

    Projections for RTP’s growth in APAC, with a projected 563 billion transactions in the region by 2027

    • The roles that regulation and KYC compliance will play as A2A dominance deepens

    • Why Project Nexus may be the solution going forward when it comes to cross-border remittances

    • What drove Vietnam propel itself from cash-based to wallet-based, as QR code payments have grown by 471% since 2018, RTP transactions grew from 700m (2019) to 7 billion (2023) and POS terminals in use went from 261K in 2019 to 471K in 2023

    • Which are the best Asia Pacific payments markets for industry opportunities like embedded payments, innovative B2B solutions, cross-border ecommerce via alternative payment methods, small-business digitalization and loyalty-driven card issuance, among others

    And much more.

    Click below to download the presentation with the data

    Download the presentation: 2024 Payments Megatrends in APAC

    Click below to watch highlights of the webinar:

    Next steps

    Contact us to leverage our deep understanding of Asia payments to your advantage. Our team can help yours identify new opportunities, prepare for these megatrends, anticipate other marketplace shifts and generally strengthen your results in these markets.

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    Payments and Commerce Market Intelligence (PCMI) is a strategy consultancy specializing in the global payments industry.