Asia-Pacific to Lead Global Cashless Payments by 2030
By the end of 2030, the Asia-Pacific region is expected to account for almost 45% of global cashless payment volume, reaching USD 26.7 trillion, according to S&P Global Market Intelligence. In 2023, the region saw USD 14 billion in cashless payments, representing 39% of the global volume.
Opportunities for Fintechs
Asia-Pacific offers significant growth opportunities for payment fintechs, driven by the rise of cashless payments and alternative methods. Fintechs should adopt local payment preferences, integrate e-wallets and account-to-account transfers, and support QR codes and mobile payments. Investing in local expertise and forming partnerships is crucial for navigating the diverse market, including securing domestic licenses and complying with varied local regulations.
Innovations and Revenue Opportunities
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.
India’s Rapid Digital Payment Growth
In India, a key market in the Asia-Pacific, digital payments are rising at unprecedented speeds. The UPI payment system has become hugely popular for retail digital payments in India, and its adoption is increasing rapidly. 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.
