Banks of the Asian region enjoy a particular advantage when it comes to digital payments. As a result of customers’ familiarity with app-based services, uptake is likely to remain strong in the coming years
FREMONT, CA: Based on The future of digital banking in Asia 2022 report, experts remark that in the Asia Pacific region, the digital payments revolution continues to lead the way. Advances in technology, progressive legislation, a diverse set of competitive competitors, including established providers and new fintech entrants, increasing customer needs, and rapid digitisation as a result of the pandemic are all hastening the pace of transformation.
Furthermore, real-time payments, both domestic and cross-border, are becoming more common. Digital banking in Asia will be defined by frictionless, global, and ubiquitous transactions, with capabilities agnostic to payment methods or forms of storage spanning cards, digital wallets, bank accounts, and open banking.
Asia is likely to remain at the forefront of electronic, mobile, and social commerce as a result of these rapid advancements in the region's digital payments. The ongoing penetration of the internet in Asia, due to the rollout of 5G in South Korea, Taiwan, Japan, China, and Thailand, will catalyse this phenomenon. Meanwhile, countries like India, Indonesia, Vietnam, the Philippines, Malaysia, Sri Lanka, and Pakistan will soon implement their regulations.
Smartphones are expanding the scope of internet connection, and their penetration has a lot of potential, particularly in China. Consumers may now connect with internet retailers more easily than ever before using social media apps. These reasons, together with increasingly efficient last-mile delivery infrastructures - such as drones in more rural areas - would play a significant part in strengthening Asia's e-commerce, m-commerce, and s-commerce domains' popularity. In 2020, 2.15 billion people in Asia utilised e-commerce, according to Statista. By 2025, the number of individuals using e-commerce in the region is likely to hit the 3 billion mark.
Technological innovation is the key to continued success of e-commerce in Asia. Better mobile internet connection and broad smartphone ownership, as well as the deployment of cloud native-enabled technology architecture, would accelerate Asia's use of QR codes. These machine-readable matrix barcodes streamline transactions by sending data between mobile phones and other devices in real-time.