Voice of the Industry

Payment technology predictions for Asia Pacific – what to expect of 2024

Friday 24 November 2023 12:25 CET | Editor: Claudia Pincovski | Voice of the industry

Jonathan Bautista, BPC, analyses Asia-Pacific's payment landscape rapid shift from traditional methods to digital solutions, driven by fintech innovation.

We observe a swift shift from traditional cash and cheque methods to a diverse landscape encompassing digital wallets, cryptocurrencies, and innovative fintech solutions. Fintech startups lead this disruption, prioritising convenience, security, and efficiency for optimised payment speed and accessibility. Projections for the Asia-Pacific Payments Market signal substantial growth, from USD 12.29 trillion in 2023 to USD 22.97 trillion by 2028, driven by the increasing adoption of contactless payments expected to surge over 50% from 2023 to 2025. This trend reflects a significant move away from cash, driven by rapid advancements in payment technology throughout the region.

What is characterising payment industry in Asia

The surge in the Asian market can be attributed significantly to the impetus provided by the COVID-19 pandemic, underscoring the inherent benefits of digital transactions and robust digital payments infrastructure. This momentum has propelled the growth of non-cash transactions, witnessing a continuous uptrend. This shift has given rise to innovative payment methodologies gaining favour among consumers, such as instant payments, cross-border transactions, e-wallets, and QR-code-based solutions. Projections from the Asian Development Bank indicate that by 2030, the digital economies of the Asia-Pacific region are anticipated to reach a valuation ranging from USD600 billion to USD1 trillion.

What FIs and fintechs should expect next?

As consumers shift towards cashless transactions, financial institutions and fintech firms must adopt modern solutions to meet evolving demand. Traditional payment methods are being replaced by businesses undergoing digital transformations, involving front and back-end system overhauls, new features, and modifications. In 2024, six key trends will be focal points as organisations navigate this transformative landscape.

Greater collaboration between finance and technology

In the face of heightened competition from challenger entities, fostering collaborations becomes imperative for fintech firms striving not only to survive but to flourish and broaden their digital financial service offerings. In the Asia-Pacific region, financial institutions have exhibited a mounting interest in partnering with fintech companies, with major players already committing investments to more than 50 fintech equity funds. This strategic alignment underscores the industry's recognition of the symbiotic relationship between traditional financial entities and agile fintech innovators in the pursuit of sustained growth and innovation in the digital financial landscape.

Cross-border instant payments

The Asia-Pacific (APAC) payments sector is witnessing a significant transformation, driven by the rising trend of instant payments. Rapid developments in cross-border transactions, led by Indonesia, Singapore, Thailand, China, India, Australia, and Japan, are seamlessly integrating diverse payment systems into a unified network. This initiative not only enhances convenience but also facilitates peer-to-peer (P2P), account-to-account (A2A), and e-wallet instant transactions, amplifying the efficiency and accessibility of financial transactions for both ecommerce and consumers.


Reiterating the earlier point, Buy Now, Pay Later (BNPL) has asserted its dominance in the Asia Pacific region, with a projected value set to soar to USD782.9 billion by 2028. The allure of a flexible approach to interest-free purchases has garnered significant attention, especially propelling the service to remarkable success in Australia and New Zealand. In Australia, BNPL constitutes a substantial 20% of all ecommerce transactions, while in New Zealand, it captures 12.5% of the market share. The trend is gaining traction in other Asian markets as well, with notable growth observed in countries such as Singapore, Japan, and India.

SaaS will prime

Anticipate a significant metamorphosis in the fintech sector come 2024, propelled primarily by the burgeoning Software-as-a-Service (SaaS) industry. The prevalence of cloud-based applications within the SaaS framework provides unparalleled convenience, negating the need for in-house deployment and its associated costs. This shift empowers businesses to redirect their focus toward refining the customer journey. Projections indicate that the SaaS market is poised for substantial expansion, with revenue forecasted to exceed USD 60 billion by 2028. This evolution underscores the pivotal role of technological advancements in reshaping the landscape of financial technology.

Digital wallets

Mobile commerce's rise signals a shift to digital wallets as the primary choice for online payments, which are projected to account for 65.4% of APAC ecommerce payment methods up from just over 60% in 2020. This trend, led by prominent digital wallets like Alipay, GCash, Gojek, GoTo, Grab, MoMo, and PhonePe in the Asia-Pacific region, is fueled by the convenience and security of mobile payments. Notably, Grab is expanding its footprint in the digital payments sphere, enabling users to seamlessly make cashless payments not only for ride-hailing and food delivery services but also across numerous online and in-person establishments, with projections indicating that digital wallets will constitute 73% of online transactions in the region by 2026, emphasizing their increasing significance in shaping the future of online financial transactions.


QR code payments, facilitating touch-free transactions, have gained broad consumer acceptance, mitigating contact with shared surfaces. Beyond consumer convenience, QR codes are crucial for businesses targeting tech-savvy audiences, particularly in high smartphone penetration countries. In the Asia-Pacific (APAC) region, QR codes are integral to daily ecommerce, crossing borders seamlessly. Collaborations between Vietnam, Philippines, and Brunei, along with Indonesia, Thailand, Malaysia, and Singapore, showcase a unified payment method's emergence across Asia. Financial institutions in the region actively seek efficient solutions to integrate QR payments for merchants, recognising its pivotal role in shaping the modern financial transaction landscape.


The evolving digital payments scene in Asia is driven by various factors impacting consumers, businesses, and the economy. Smartphone advancements facilitate ecommerce, instant payments, and cross-border transfers, fostering global market growth. To harness the burgeoning digital opportunities in the APAC market in 2024, banks and fintechs should invest in strategic technological partnerships, prioritise collaboration over competition, and explore cloud-native solutions for enhanced flexibility and adaptability to market changes. This sets the stage for a transformative shift in the Asia-Pacific financial landscape, with mobile commerce driving digital wallets as the premier choice for online payments and widespread QR code adoption signalling a unified and efficient payment ecosystem.

About Jonathan Bautista


Jonathan is a Commercial Director and Head of the Pre-Sales Group for the APAC region.Jonathan is a Commercial Director and Head of the Pre-Sales Group for the APAC region. Based in Singapore, Jonathan's dedication and proficiency have consistently contributed to the company's achievements. In his current role Jonathan has been steering the organisation towards success. His responsibilities encompass overseeing sales processes and leading a dynamic team to drive growth and deliver innovative solutions to clients. Prior to his current role, Jonathan served as a Regional Solutions Consultant for over a decade, playing a pivotal role in BPC's success story. During this time, he specialised in pre-sales and solutions consultancy, focusing on critical areas such as ATM Switch, Card Management System (Debit Card, Credit Card, Prepaid Card), Fraud Prevention and Management System, ATM and POS Management Solution, Mobile Banking System, E-Commerce Payment Gateway, and 3-D Secure. 

About BPC


Through its cutting-edge SmartVista platform, BPC offers an innovative core processing solution that is cloud-native and equipped with a highly flexible integration and orchestration layer. The solution seamlessly integrates with an expanding network of industry-leading third-party providers, including BIN Sponsors, Banking-as-a-Service (BaaS) providers, eKYC solutions, card manufacturers, and others, empowering to deliver unique and innovative digital solutions that cater to market demands.

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Keywords: payments , e-wallet, cryptocurrency, fintech, startup, contactless payments, COVID-19, transactions , digital payments, cross-border payments
Categories: Payments & Commerce
Companies: BPC
Countries: Asia
This article is part of category

Payments & Commerce


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