The embrace of mobile money, e-wallets, and QR codes by consumers, businesses, and regulators alike means the region will be exploring newer payments trends in-depth in 2023 and beyond.
Vietnam are spurred on by regulator support. In November 2021, the Vietnamese government approved a project on the development of cashless payment in the 2021-2025 period. To help promote cashless payments in public services, The National Payment Corporation of Vietnam (NAPAS) has connected payment infrastructure between 45 localities and 15 ministries, departments, and agencies that provide public services.
With expected slower global growth forecasted in the coming years, picking the right verticals that align with payments providers’ business goals is vital to success and survival. Here are four key trends that will shape the Asia Pacific payments space in 2023 and 2024: cross-border payments, digital currencies, buy now, pay later (BNPL), and the rise of neobanks.
Regulators and payments players alike in Asia Pacific are reinventing cross-border payments, driven by consumers’ demand for instant, low-cost payments.
Fintechs and apps themselves are tying up with infrastructure providers to support their cross-border ambitions. In September 2022, Vietnamese e-commerce platform player Buy2Sell partnered with Mastercard to enable multiple payment types via single connection. Tinkoff, one of the world’s largest digital-only banks serving 18.5 million customers, selected Finastra Fusion Essence Cloud core banking solution to power its planned expansion into the Philippines.
China became the world’s first major economy to pilot a digital currency (e-yuan or e-CNY) in the middle of the pandemic in April 2020. As of September 2022, e-CNY boasts over 1.2 billion users.
Meanwhile, the Reserve Bank of India (RBI) is set to pilot the e-rupee digital currency. In an October 2022 concept note, the e-rupee CBDC will be released in two forms: wholesale for interbank settlements and retail for the public.
More Asia Pacific super apps are wading into the neobanking and digital banking space.
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