Last week, we started a series of articles focusing on APMs (Alternative Payment Methods) around the world. APMs and their usage trends vary vastly between different regions. Selecting the right payment methods for your target markets is crucial when building your payments strategy and making sure you provide your potential clients with their preferred payment methods. Today, we are going to look at the Asian markets, and the key things you should know if you are planning to grow your business in this bustling region.
In Asia, APMs have taken center stage, transforming the way businesses and consumers handle transactions. Already in the early 2010s, Asian markets were distinguished by high smartphone usage, which propelled the growth of mobile-first eCommerce and, naturally, the growth in demand for mobile wallets. In this article, we will delve deep into the trends, types, and most popular brands shaping the APM scene in Asia. To sum up, the two trends defining the Asian APMs scene are Mobile Wallet Dominance and QR Code payments.
Mobile Wallet Dominance:
Asian countries, particularly China and India are defined by the widespread adoption of smartphones, which has propelled mobile wallets like Alipay, WeChat Pay, Line Pay and Paytm to becoming indispensable in consumers’ daily lives.
QR Code Payments:
QR code-based payments have become ubiquitous in Asia. Small businesses, street vendors, and large retailers alike have adopted QR codes, enabling seamless transactions. This trend is notably prominent in China and Southeast Asian countries.
Asia’s Top APMs
If you are planning to grow your business in Asia, here are some of the popular APMs. It is worth keeping in mind that the perfect fit of the right payment method depends on a number of factors. Praxis’ team of Payment Optimization experts will be happy to advise on the best options for your industry and needs.
China:
In 2021, mobile payments in China reached a staggering $59.5 trillion in transaction value, reflecting the country's mobile payment dominance.
Interested in these solutions? It’s important to remember that while WeChat Pay and Alipay lead the market, it is worth pointing out that they may be limiting to a number of businesses / industries. Talk to our Payments team to find the solution that can be a better alternative and fit for your business needs.
India:
India's digital payments market is expected to reach $1 trillion by the end of 2023, with mobile wallets and UPI transactions driving this growth.
Southeast Asia:
Southeast Asia's digital payments market is projected to grow at a compound annual rate of 14.2% from 2020 to 2025, indicating the region's increasing reliance on digital transactions.