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In the Asia Pacific region, consumers are increasingly moving to contactless and electronic payments. They continue to move away from using cash. The main reason for this change is the incredible speed at which payment technology is evolving in the Asia Pacific region. The market is expected to grow at a CAGR of 22.4% during the forecast period (2022 - 2027).
- In emerging and developing regions such as Asia-Pacific, mobile payments have grown tremendously due to the ease of transactions, the widespread use of smartphones, and the financial inclusion capabilities provided by technology.
- Still, a significant share of individuals worldwide do not have access to banking systems; but the mobile payment system has enabled financial inclusion for such individuals. For instance, India's Payments Banks (PBs) are primarily used for mobile payments. In India, PBs saw the potential of serving 190 million unbanked adults as supported by the Reserve Bank of India.
- With the spread of smartphones and the Internet, the adoption of mobile wallets has been accelerating over the years. China and India now make up more than 50% of the world's smartphone population, making e-Wallet use the mainstream. They provide convenience and security for payment processing and are currently at the forefront of payment changes.
- With the spread of smartphones and the Internet, the adoption of mobile wallets is accelerating year by year. Further, they provide the convenience and security of payment processing and are currently at the forefront of payment changes. Additionally, the unique characteristics of the payment environment in the Asia-Pacific region are that the government is actively pursuing policies that encourage cashless payments.
- During the 2020 COVID-19 pandemic, digital payments accelerated in the Asia Pacific region. Physical or contactless cards and digital wallets were the most common payment methods during the health crisis, but in 2020 cash remained the primary payment method in some countries. Acceptance of mobile payments also increased during 2020 and is still trending in the region.
Scope of the Report
The Asia Pacific payments market includes various types of payments, including point-of-sale, e-commerce, card payments, and contactless payments. E-commerce payments include online purchases of goods and services. Shop from e-commerce sites and book travel and accommodation online. In the case of POS, all transactions made in physical sales are made in the market area of credit or debit card payments. This includes all face-to-face transactions, not just traditional in-store transactions, regardless of location. The studied market also includes innovations or trends of the major players in the region.
|By Mode of Payment|
|By End-user Industry|
|Other End-user Industries|
Key Market Trends
The retail sector is expected to grow significantly with the increased demand for e-commerce
- The Asia-Pacific region is anticipated to witness significant growth in the market studied as countries like China and India adopt the digital mode of payment using digital and mobile wallets, especially in the retail businesses.
- The ubiquitous mobile devices, advanced digital infrastructure, and the growing usage of apps drive digital/mobile wallets, increasing in the Asia-Pacific region. According to the Global Payment Report 2020, digital and mobile wallets account for 58% of regional e-commerce payments and are expected to reach 68.2% by 2023.
- Further, the e-commerce sector in retail businesses is witnessing a spike in demand as consumers order essential items such as food and clothes, among others, through e-commerce websites, where most consumers prefer the digital mode of payment.
- According to the Reserve Bank of India’s (RBI) digital payments index (DPI), which was launched in January 2021 to indicate the extent of digitization of payments in India, the index for September 2021 stood at 304.06 against 270.59 in March. This shows the rapid adoption and deepening of digital payments across the country.
- Today's consumers have countless shopping and payment options in the APAC region. Consumers can browse the store and complete their purchases online. They can also participate in live sales sessions as social commerce grows in popularity and promises to be an essential driver of new and repeat sales. In addition to card payments and bank transfers, consumers can also choose from various mobile payment methods and electronic wallets.
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Growing Investments in POS and Digitalization are expected to boost the market growth
- The digitalization of payment as the standard mode of transaction move, from cash to digital methods, is driving the growth of the studied market. APAC region can be identified with heavy usage of card payments, including debit and credit cards. The rise in demand for contactless card payments is also a significant driver. Contactless payments have been around for a while, even before the pandemic. The COVID-19 pandemic has just pushed the trend forward.
- According to Visa’s Consumer Payment Attitudes Study, the COVID-19 pandemic formed new digital payment habits amongst Singaporean customers. The study reports that contactless card payment became the most preferred payment method, with 31% of Singaporeans opting for it. The study also outlined that 15% of Singaporean consumers prefer using cash, highlighting the rise of digitalization of payment modes.
- In February 2022, Siam Commercial Bank (SCB) invested USD 100 million in Indonesian banking and digital finance platform Akulaku as part of its strategy to expand across Southeast Asia. With this investment, SCB joins Ant Group as the second strategic investor in Akulaku.
- MoMo, a Vietnamese e-wallet business, announced in December 2021 that it had raised USD 200 million in its most recent funding round, aiming to close the gap on dozens of other digital payment startups in a tightly contested competition awash in investor money. MoMo plans to invest in other Vietnamese businesses, expand its service to millions of sellers, and expand its user base into rural areas with the funds.
- As investments grow in introducing various channels of payment across the studied region, the need for advanced POS terminal systems, including software and hardware solutions that can easily accept payment from consumers, is elevated, thereby driving the growth of the studied market.
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The Asia Pacific payments market is moderately competitive as crucial players in the region are developing new solutions in the e-commerce market for various end-user applications. Companies are also investing and forming partnerships to grow their businesses in the region and provide the country's e-commerce platform.
- March 2022 - PhonePe acquired GigIndia to enhance the services of corporate and enterprise partners. With this acquisition, the company will be able to deploy freelancers on GigIndia's platform to provide enterprises and corporate blue-collar talent for acquiring, selling, and distributing onsite clients.
- April 2022 - Rakuten Group, Inc. and UberEats Japan Inc. announced the launch of a new collaboration that integrates UberEats with Rakuten Pay's online payment service using the Rakuten ID system. Rakuten Pay will be available as a formal payment method for groceries and grocery orders on UberEats from April 1st.
- June 2021 - Worline and Toshiba strengthen relationships with longtime partner Toshiba Global Commerce Solutions, launch ProX hybrid kiosk to process payments on Worldline LANE / 3000 devices, retailers customize store design increase throughput capacities. Using convertible POS technology offers the retailer the flexibility to instantly react to customer flow while consistently delivering an easy to use, secure, and seamless shopping experience for consumers.
- March 2022 - Mastercard, DBS Bank, and Pine Labs have partnered to launch Mastercard Installation Payments with Pine Labs. This is a new program that allows DBS/POSB credit cardholders to pay interest-free installments with merchants by simply presenting the DBS / POSB and using a later pay identifier card at checkout.
Table of Contents
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the payments landscape in the region
4.5 Key market trends pertaining to the growth of cashless transaction in the region
4.6 Impact of COVID-19 on the payments market in the region
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 QR code scan payments are on rise in the region
5.1.2 Growing Investments in POS and Digitalization are expected to boost the market growth
5.2 Market Challenges
5.2.1 Cross-border payments to challenges and lack of access to digital banking and payment services
5.3 Market Opportunities
5.3.1 Move towards Cashless Society
5.3.2 New Entrants to Drive Innovation Leading to Higher Adoption
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of major case studies and use-cases
5.6 Analysis of key demographic trends and patterns related to payments industry in the region (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)
5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in the region
5.8 Analysis of cash displacement and rise of contactless payment modes in the region
6. Market Segmentation
6.1 By Mode of Payment
6.1.1 Point of Sale
126.96.36.199 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
188.8.131.52 Digital Wallet (includes Mobile Wallets)
6.1.2 Online Sale
184.108.40.206 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
220.127.116.11 Digital Wallet (includes Mobile Wallets)
18.104.22.168 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
6.2 By End-user Industry
6.2.5 Other End-user Industries
7. Competitive Landscape
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Pine Labds
7.1.2 Toshiba Corporation
7.1.3 Rakuten Group, Inc.
7.1.4 Ant Group Co., Ltd.
7.1.5 Razorpay Software Pvt. Ltd.
7.1.8 JD Digits
8. Investment Analysis
9. Future Outlook of the Market
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Frequently Asked Questions
What is the study period of this market?
The Asia Pacific Payments Market market is studied from 2020 - 2027.
What is the growth rate of Asia Pacific Payments Market?
The Asia Pacific Payments Market is growing at a CAGR of 22.4% over the next 5 years.
Who are the key players in Asia Pacific Payments Market?
Ant Group Co., Ltd., Rakuten Group, Inc., Pine Labs, Toshiba Corporation, Razorpay Software Private Limited are the major companies operating in Asia Pacific Payments Market.