Asia-Pacific cashless payments projected to reach almost 45% of global payment volume by 2030, S&P Global Market Intelligence said Tuesday.
The research house said in a note that Asia-Pacific’s cashless payment volumes at checkout, both online and offline, are projected to reach a staggering $26.7 trillion by 2030, accounting for nearly 45 percent of the projected $60.1 trillion in global payments volume.
In 2023, the region saw $14 billion in cashless payments, representing 39 percent of the $36 billion in global payment volume.
The region remains a distant third in terms of payment processing revenue, following North America, and Europe, the Middle East and Africa (EMEA).
However, revenue growth in Asia-Pacific is expected to outpace that in North America and EMEA, with a forecast compound annual growth rate (CAGR) of 12 percent from 2023 to 2030, to reach $35.4 billion.
North America and EMEA are projected to grow revenue at a CAGR of 5 percent and 7 percent, respectively, during that period.
Additionally, there’s significant potential for fintechs to generate lucrative nonpayment revenue from value-added services, such as financial products, and vertical and horizontal software integrations.
At least 18 large payment companies have a growing geographical footprint that support domestic and international merchants in the region.
The list includes global fintechs, such as the Netherlands-headquartered Adyen and the US-based Stripe, and homegrown startups, such as Singapore’s 2C2P.
S&P Global Market Intelligence expects more fintech consolidation in the region, partly driven by the growing focus on enabling medium and large merchants to sell through both online and offline channels (omnichannel).
Both strategic and tuck-in deals could offer opportunities to swiftly enable multiple channels and capabilities.
The omnichannel focus accounted for at least 19 acquisitions in the past decade.
“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,” said Sampath Sharma Nariyanuri, Senior Fintech Research Analyst at S&P Global Market Intelligence.
According to him, investing in local expertise and forming partnerships is crucial for navigating the diverse market, including securing domestic licenses and complying with varied local regulations.
He also noted developing omnichannel capabilities will enable fintechs to provide seamless experiences for businesses selling through multiple channels.
He also said expanding value-added services such as financial products and software integrations can create new revenue streams and attract merchants.
“Innovations in affordable payment solutions like sound boxes and software point of sale (softPOS) are essential for small and micro merchants,
“Fintechs should capitalize on cross-border payment opportunities, especially with the resurgence of travel,” he added.
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