Overview
The APAC payments industry has undergone remarkable transformations in recent years, serving two-thirds of the global population. Innovations in real-time payments, cross-border remittances, e-commerce, and central bank digital currencies (CBDCs) have modernized traditionally cash-dominated markets into digital ecosystems.
Key Highlights:
- Digital payments transactions in APAC grew at a 6% CAGR, reaching USD 427 billion by 2030.
- 88% of APAC consumers used digital payments at least once in the past year—a 69% YoY increase.
- Credit card penetration surged from 13% (2021) to 29% (2022).
Drivers of Digital Adoption:
- Smartphone penetration (62% of APAC population).
- Internet access (64% adoption).
- Banking services (76% inclusion rate).
Key Trends Shaping APAC Payments
1. Real-Time Payments Expansion
APAC leads globally in real-time payments (RTP) adoption, driven by QR codes, mobile wallets, and interoperable platforms like India’s UPI (89 billion transactions in 2022) and China’s IBPS (17 billion transactions).
Why RTP Thrives:
- Instant settlements: 24/7 accessibility.
- Transparency: Trackable transactions reduce fraud.
- Cost efficiency: Lower operational costs vs. cash handling.
Regional Integrations:
- Singapore’s PayNow linked with Malaysia’s DuitNow and Thailand’s PromptPay.
- India’s UPI expanding to Bhutan, Nepal, and Saudi Arabia.
👉 Explore how UPI is revolutionizing payments
2. Cross-Border Remittances Innovation
APAC accounts for 63% of global remittance growth, with India receiving USD 100+ billion in 2022.
Solutions Enhancing Efficiency:
- Distributed Ledger Technology (DLT): Faster, secure transactions.
- API integrations: Real-time forex visibility.
- Automation: Reduces delays in reconciliations.
Example: Project M-bridge (multi-CBDC platform) connects Thailand, Hong Kong, China, and UAE.
3. CBDC Implementation Accelerates
APAC is a pioneer in retail CBDCs, with Cambodia’s Bakong (8 million users) and pilot programs in China, India, and Singapore.
Wholesale CBDC Use Cases:
- Cross-border trade settlements (Project Dunbar).
- G-sec and DVP settlements.
Motivations:
- Financial inclusion: Government disbursements via digital wallets.
- Cost reduction: Eliminates currency printing/spoilage.
4. Rise of Digital Banks
APAC’s digital banks—like Hong Kong’s ZA Bank (56% active customers in Year 1)—leverage mobile-first models to offer low-cost, seamless services.
Advantages:
- Unified platforms: Integrate multiple accounts.
- 24/7 chatbots: Enhanced customer support.
Challenges:
- Limited physical services.
- Regulatory compliance hurdles.
👉 Digital banking’s future in APAC
Emerging Lending Models
B2B Lending for MSMEs
- Account aggregators streamline data sharing, reducing loan processing costs.
- Blockchain-based platforms tokenize receivables for flexible credit.
B2C Trends: BNPL & Co-Branded Cards
- BNPL hit USD 100+ billion in APAC e-commerce (2022).
- Co-branded cards (e.g., Grab-Citi) grew 48% YoY in India.
Regulatory Focus:
Australia and NZ now enforce KYC mandates for BNPL providers.
Conclusion
APAC’s payments ecosystem sets a global benchmark with its scalable, interoperable innovations. Future priorities include:
- Flexible RTP systems to integrate CBDCs.
- Wholesale CBDCs for cross-border trade.
- FinTech partnerships to drive financial inclusion.
FAQs
Q1: Which APAC country leads in real-time payments?
A: India’s UPI processed 89 billion transactions in 2022—the highest globally.
Q2: How do CBDCs benefit consumers?
A: They offer risk-free digital currency, faster remittances, and lower transaction costs.
Q3: What’s the growth outlook for digital banks?
A: By 2025, APAC’s digital banking revenue will exceed USD 500 billion (PwC analysis).
For inquiries, contact:
Vivek Belgavi (FinTech Leader, PwC India) | Mihir Gandhi (Payments Transformation Lead, PwC India).
👉 Learn more about APAC payment trends