Key payment lessons for APAC
This is a very exciting time for payments in Asia Pacific as the region is at the forefront of the race towards a cashless world. Every country in the region has consumers who have adapted to a certain way of buying and making payments. Organizations that successfully identify and implement these preferences are destined for long-term growth. The deep penetration of mobile devices has driven consumers away from traditional modes of commerce, creating trends such as digital wallets and QR payments to keep moving forward.
Source: BPC Guide to Digital Banking in Asia
While banks and other financial institutions work simultaneously to deliver the best to their customers, what is certain is that the digital transformation of payments is an open-ended process. Among the many trends that will arise, here is what we can definitely expect:
Super darling apps: The rise of tech giants has changed the way consumers like to receive their financial services. The region is seeing a massive migration to “super apps” lifestyle platforms, which provides them with the opportunity to have access to multiple products under one roof. Apart from shopping, it also allows them to chat with friends on social media, order food and take out loans. A leading super app such as WeBank, for example, currently serves over 200 million users, just five years after its launch. Alibaba’s MYBank is also in the running, with 20 million SME customers.
The cryptocurrency boom: As mobile adoption and cryptocurrencies become more widespread in the region, many Asian countries are creating their own central bank digital currencies (CBDCs). China’s digital yuan is already exchanged for cash at more than 3,000 ATMs across the country, while Vietnamese citizens use cryptocurrencies for payments and rank second in the world in the use of crypto. The Bank of Thailand is also ready to start testing its digital baht after listing the services of Giesecke & Devrient. Additionally, while Singapore may not have disclosed an official go-live time for its digital currencies, the Central Bank has been gathering suggestions from financial institutions, fintech companies, and other industry players. the ecosystem.
Payments by QR code and electronic wallets: In Asia-Pacific, consumers are very excited about the idea of e-wallets because they are attracted to the concept of being able to make quick payments to merchants. Tech giants such as WeChat Pay, Alipay, PhonePe, Paytm, Go-pay and RuPay are active members who are constantly increasing the trend of e-wallets by introducing new offers. With seamless experiences, QR codes are also handy for making payments, placing orders, and tipping employees. Looking at the opportunity pool, Mastercard has also created QR codes that provide global interoperability.
Credit cards will change forever: As payment trends continue to evolve, older models must progress in order to keep up with the opportunities. Financial institutions continue to shape the future of credit cards by adding rewards and loyalty programs as part of the everyday user experience, adding cash back to something as simple as their grocery store. Various card offerings by issuers will continue as they tap into the most basic needs of a consumer’s life.
Integrated financing: when we talk about speed, convenience and customization – which sums up everything mentioned above – integrated finance cannot be left behind. The rise of integrated finance by non-financial third parties is proof that several players are involved in creating a unique experience for users. A great example of a growing APAC platform is Grab – a company that started as a ride-sharing service and then moved on to food delivery services. Currently, the application provides integrated services such as loans, insurance and investment options.
The road ahead
As customer preferences continue to evolve, financial institutions are constantly looking for the right partner who understands pain points and helps them accelerate this digital transformation journey. Many banks and other financial institutions in APAC are moving to a payment-as-a-service (PaaS) model using API-based platforms. Many experts consider PaaS to be the “end game” for payment services, as its cloud-based capability provides state-of-the-art technology on a pay-as-you-go basis.
Those who have understood the path ahead have jumped on the bandwagon and are now delivering personalized experiences to customers. For a rather notable reason, there are currently no dead ends in digital transformation in the Asia-Pacific region.
About Terry Paleologos
Terry Paleologos is BPC’s Chief Operating Officer in APAC and is an experienced technology executive and start-up entrepreneur specializing in mobile commerce and fintech. He is an accomplished payment expert in launching and managing successful multinational divisions and service lines in various stages of development, from start to finish.
Created 25 years ago, CPC has transformed over the years to provide innovative and proven, best-in-class solutions that fit today’s consumer lifestyles when banking, shopping or moving in urban areas and rural, connecting real life to digital. With 350 customers in 100 countries around the world, BPC collaborates with all players in the ecosystem, from top-tier banks to neo-banks, payment service providers (PSPs) to large processors, from e-commerce giants to startups. , from government agencies to local hail transport companies.