Asia Pacific payscape 2021

The Asia Pacific region had many of the fastest growing markets globally by card payment value from 2011 to 2016, and this is projected to continue to 2021, according to Euromonitor International. All international companies involved in the payment process are looking to better position themselves in the region to benefit from the sustained growth throughout the region. The region, similar to the global payments landscape, has a variety of challenges and opportunities that will determine which payment players will benefit the most going forward.

Growth drivers to 2021

Credit cards are becoming popular in the largest market in the region, China. Previously, access to credit was limited by the inability to accurately assess creditworthiness. A policy allowing the communication of consumer information, greater competition and financial education has widely increased the proportion of the population that now has access. With more recently banked consumers expanding their card portfolios, credit will continue to drive card payments in the region going forward.

Although cash on delivery is still commonly used in markets throughout Asia, it is far more convenient for the merchant, the consumer and the government to conduct the transaction online with a card or electronic transfer. With more retailing shifting online in the region, this will continue to be a fundamental driver of paper payment alternatives. Additional adoption of smartphones throughout the region ensures that more consumers will gain access to online marketplaces.

Mobile payments allow merchants to expand their relationships with consumers and advertise more effectively. For consumers, there are more relevant offers that can directly impact choice. This brings the most important actors in a transaction closer and encourages card and electronic payment acceptance and use. This technology has also increased the competition by providing a channel for technology companies to compete with traditional card networks.

Most markets throughout the region have declared a series of policies aimed at reducing the total cash in circulation and supporting card or electronic alternatives. Given the effort and cost to transition an entire payments system, how this process is implemented has taken a variety of forms and has experienced varying degrees of success, that have largely resulted from the degree of coordination between merchants, consumers, issuers and networks.

Asia Pacific is expected to generate two thirds of the world’s additional card payment value from 2016 to 2021. This presents a significant opportunity for payment companies in the region, as well as those currently investing in expanding their Asian presence. Supporting this growth will be the regulatory framework established by governments in the region, the extension of financial services to wider segments of the population, and the transition of the modern retail format online.

Learn more about these insights in Euromonitor International’s Asia Pacific Payscape 2021: Payment Policy Developments report.

About Kendrick Sands

Kendrick Sands is a Senior Consumer Finance analyst at Euromonitor International, which he joined in 2010. In his current position, Kendrick coordinates the consumer finance research, which provides strategic analysis and in-depth coverage of the consumer finance market in 46 countries worldwide. He also works closely with the international client base of Euromonitor. Prior to joining Euromonitor International, Kendrick worked as a company analyst with a Chicago-based hedge fund focusing on financial institutions. He received his master of policy and economics from the University of Chicago in 2009.

About Euromonitor International

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis.