As we step into 2025, the APAC region stands at the forefront of a global financial transformation, with digital wallets and real-time payments reshaping the very fabric of commerce. Exploring the state of digital payments across six key APAC markets — Australia, metro China, Hong Kong, Singapore, Malaysia, and Indonesia — our latest report, The State Of Digital Retail Payments In Asia Pacific, 2024, offers valuable insights and trends that are shaping the industry. We found that:

  • Buy now, pay later (BNPL) has bounced back. Although strict regulations initially damped its growth, BNPL has surged in popularity among Gen Zers and Millennials. Younger consumers are particularly attracted by its flexible repayment terms and lack of interest charges. The BNPL market in APAC still has room for growth.
  • Cryptocurrency and stablecoin usage have increased. The use of crypto for payments increased notably in 2024, especially in high-growth economies such as India and Indonesia. Consumers are becoming more familiar with cryptocurrency and stablecoin, which will lead to increased trust and use in the coming years.
  • Central bank digital currencies (CBDCs) are still fresh and have room to grow. CBDCs are emerging as a promising digital payment method, with several APAC countries exploring or implementing these initiatives. The introduction of CBDCs represents a significant step toward digital currency adoption, backed by the security and trust associated with central banks.
  • Digital payments are popular in both high-growth and mature economies. This surge in digital payments is largely driven by the convenience that digital payments offer over traditional methods like cash or cards. Consumers also appreciate the ease of transaction tracking and financial management that digital options provide.
  • Cash is resilient despite the booming digital payment landscape. During the pandemic, concerns about hygiene caused cash’s popularity to plummet, with digital payment usage growing significantly, but our more recent findings show that cash remains a popular payment method for both online and offline transactions.

Keeping pace with the dynamic changes in the digital payments sector is essential for businesses aiming to succeed. With the landscape continually shifting, a deep understanding of consumer preferences and behaviors across APAC’s varied markets becomes indispensable. This knowledge allows banks, payment services, fintech companies, and merchants to refine their payment solutions to better serve their clientele. Read the full report for deeper insights into APAC’s latest digital payments landscape.

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