In a fragmented market where the payments landscape and consumer needs are so diverse, it is crucial for financial institutions to remain innovative in developed markets and promote financial inclusion in less developed countries.
In Southeast Asia’s fast-paced financial services sector, payments present a compelling avenue for revenue and inclusion, fueled by the growth of e-commerce, improved trade flows and a strengthening regional regulatory agenda. The transition from traditional payment methods to online, fuelled by the progress of technology, telecommunication and financial inclusion, is greatly reshaping the region’s payment landscape.
However, there has been uneven adoption of real-time payments. Mature economies like Singapore and Malaysia are moving towards becoming truly cashless and doubling down on cross-border payments. Meanwhile, markets like Vietnam and Indonesia, which currently has the world’s third-largest unbanked population, continue to heavily rely on cash.
