According to the findings published by Euromonitor International, Asia-Pacific recorded the highest overall paperless payment transaction value in 2023, which was worth the amount of USD 29.063 billion and accounted for 52% of the worldwide total.
As cards represent the most popular payment methods in the region of Asia-Pacific as a whole, credit and debit cards are set to generate the overall bulk of new sales over the 2023-2028 period. In addition, credit cards are expected to record a slightly stronger compound annual growth rate (CAGR) than electronic direct transactions, as personal electronic direct payments are forecasted to overtake personal cash transactions in 2028.
While paper transactions still remain important in some countries around the region, the convenience of digital wallets continues to drive up the adoption in the Asia-Pacific area. This is gaining popularity, especially in emerging countries such as Thailand, Indonesia, China, and India.
With this in mind, almost 70% of customers in the region of China leverage WeChat Pay on a daily basis, and over half of Indian clients use PhonePe every day. At the same time, Indonesia also shows a fast-growing mode of personal payment transactions, with a CAGR of 67% during 2018-2022. This development was driven by the popularity of smartphones, as well as the increased usage of digital wallets, mobile banking, and the Quick Response Code Indonesia Standard (QRIS) which was designed for cashless transactions. In development markets, there also remains potential for growth, as countries such as Singapore and Hong Kong saw a CAGR of 31% and 19% respectively for mobile proximity payments during 2018-2023.
Among card transactions, debit cards remain the most popular payment type for personal card payments in China, its popularity being boosted by its state-backed inclusive finance programme that encourages bank account openings in several rural areas in the region. The highest growth of credit card payment transactions in APAC was recorded in India, as the shift to UPI has drawn local clients to faster and more convenient transactions, while also contributing to the exponential development of personal electronic transactions at the same time. Cash payments are set to continue to lose their share, as credit cards will outperform debit cards in terms of transaction value by 2028 and cards in circulation remain dominated by debit cards.
Japan has the second highest growth in personal card payment transactions, which is attributed to the region’s 'Cashless Vision' initiative. At the same time, debit card transactions are at the forefront of the country’s strategy, developing a CAGR increase of 19% in 2018-2023.
Japan and South Korea also witnessed a rapid decline of paper transactions, as a result of digital conversion to electronic and card payments. In the same period, Japan saw negative growth, the second highest decline in terms of retail value after China, while South Korea recorded the highest decline percentage in paper transactions by negative 39% during 2018-2023. At the same time, mobile proximity payments have grown by 29%.
In Asia-Pacific, Embedded Finance partnerships have accelerated the development of digital IDs and remote verifications. Advanced credit decisioning and government initiatives (including payment standardisation such as fast payments and QR, or subsidies) have also accelerated financial inclusion, payment diversification, and cashless payment development.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now