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Asia Pacific digital payment market gaining momentum

1/10/2015 by Dominic Da Costa


Alipay and WeChat Wallet are proof of how non-bank-led financial services are able to break into Asia Pacific's digital payment market, reports Digital News Asia.

The publication cited the two as examples after a survey commissioned by ACI Worldwide and conducted by IDC Financial Insights painted the region as an early adopter of digital payment technology, which non-financial organisations have sought to capitalise on.

"The region is rapidly moving toward real-time or immediate payments, driven by customers' demand for faster and more efficient payments," said Rachel Hunt, marketing director, Asia Pacific & Japan, ACI Worldwide.

"Non-financial services have added to the dynamic competition, extending payments from online and mobile ecosystems into peer-to-peer payments within social apps such as WeChat and Line."

Hunt added that Asia Pacific's financial services industries, processors and retailers will need to overhaul their payment infrastructures in order to compete.

The incentive to do so is illustrated in the eight-country study by ACI Worldwide, with 82% of respondents saying they had used new digital payments.

The impressive penetration rate is said to have been driven by sophisticated Generation Y consumers aged 25-34 years old, who don't think twice about using newer methods of payments with mobile platforms, such as smartphone wallets and online payment tools.

Of those consumers that use online payment services, 47% said they do so to enjoy faster and more efficient payments, while 21% said they had trust in online payments.

Meanwhile, the Shared Economy, which is built around the sharing of resources, is thought to be a major market driver in the Asia Pacific region, with one of the top three 'shared economy' services, taxi hire, placing a value on speedy and seamless transactions.



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