Cashless payments in Asia Pacific projected to reach 45 pc of global payment volume by 2030
Jul 16, 2024
New Delhi [India], July 16 : Total cashless payments in the entire Asia Pacific region are projected to reach almost 45 per cent of global payment volume by the end of this decade - 2030, said S&P Global Market Intelligence.
Asia-Pacific's cashless payment volumes, both online and offline, are projected to reach a staggering USD 26.7 trillion by 2030, accounting for nearly 45 per cent of the projected USD 60.1 trillion in global payments volume, according to 451 Research, part of S&P Global Market Intelligence.
In 2023, the region saw USD 14 billion in cashless payments, representing 39 per cent of the USD 36 billion in global payment volume.
Asia-Pacific offers significant growth opportunities for payment fintechs, fueled by the rise of cashless payments and alternative methods.
To succeed, fintechs should adopt local payment preferences, integrate e-wallets and account-to-account transfers, and support QR codes and mobile payments, said the financial information and analytics firm.
"Investing in local expertise and forming partnerships is crucial for navigating the diverse market, including securing domestic licenses and complying with varied local regulations," said Sampath Sharma Nariyanuri, Senior Fintech Research Analyst at S&P Global Market Intelligence.
"Innovations in affordable payment solutions like sound boxes and software point of sale (softPOS) are essential for small and micro merchants. Fintechs should capitalize on cross-border payment opportunities, especially with the resurgence of travel."
Additionally, there's significant potential for fintechs to generate lucrative nonpayment revenue from value-added services, such as financial products, and vertical and horizontal software integrations, it suggested.
Going ahead, S&P Global Market Intelligence expects more fintech consolidation in the region, partly driven by the growing focus on enabling medium and large merchants to sell through both online and offline channels (omnichannel).
In India, a key market in the Asia Pacific, digital payments are rising at never seen before speed. The UPI payment system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
UPI is India's mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
