Asia-Pacific – Cashless payments in Asia-Pacific are anticipated to reach US$26.7t, indicating nearly 45% of the US$60.1t global payment volume by 2030. This is according to a recent study conducted by financial services firm S&P Global Market Intelligence.
Data from the report found that the region experienced US$14b in cashless payments in 2023, accounting for 39% of the US$36b in global payment volume.
In terms of payment processing revenue, the region also maintained a distant third, following North America, Europe, the Middle East, and Africa (EMEA). However, revenue growth in Asia-Pacific is expected to be higher than that in North America and EMEA, with a compound annual growth rate of 12% from 2023 to 2030, reaching US$35.4b.
Additionally, North America and EMEA are expected to grow their revenue at a compound annual growth rate of 5% and 7%, respectively, during the same period.
Meanwhile, the report also showed a significant potential for fintechs to create lucrative nonpayment revenue from value-added services, including financial products and vertical and horizontal software integrations. At least 18 major payment companies are further expanding their geographical presence to support domestic and international merchants in the region.
Commenting about the report, Sampath Sharma Nariyanuri, senior fintech research analyst at S&P Global Market Intelligence, said, “Asia-Pacific offers significant growth opportunities for payment fintechs, fueled by the rise of cashless payments and alternative methods. To succeed, fintechs should adopt local payment preferences, integrate e-wallets and account-to-account transfers, and support QR codes and mobile payments.”
“Innovations in affordable payment solutions like sound boxes and software point of sale (softPOS) are essential for small and micro merchants. Fintechs should capitalise on cross-border payment opportunities, especially with the resurgence of travel,” explained Sampath.
