Thanks to a ‘top down’ regulatory push towards cashless societies in the Asia-Pacific (APAC region – excluding India and China in this context), there will be growth of nearly $200bn by 2021 according to research carried out by Frost & Sullivan, a US research firm.
Htet Tayza comments on the developments, reported by TelecomAsia.net
Very high growth
According to Frost & Sullivan, the number of active customers will double to 130.8 million by 2021, also – this is a very high projection which implies growth is almost rampant.
The article states that as attitudes towards the Fintech industry in the region open up, competition is, in turn, increasing as more start-ups and established companies attempt to capitalise on the growing sector.
The article also states that as mobile payments grow in usage, providers need to gain a better understanding of the region in order to gain an edge – this is true and is happening in real-time, meaning payments companies must act now.
Leading the world in payments
I’ve written previously and quite extensively about the growth of the Fintech industry in the APAC / ASEAN region, so it’s not a surprise that growth is projected to be strong in the future as regional economies grow and develop further and further.
Returning to the article, it appears that regional differences are apparent when it comes to which mobile payment systems are utilised. Frost & Sullivan Digital Transformation Industry Principal Analyst Quah Mei Lee says:
“For instance, in Indonesia and the Philippines, telcos lead with their e-money products whereas in Japan, South Korea and Australia, credit card is the key payment method. Understanding these dynamics is critical for mobile payments solution providers to succeed.”
To summarise, mobile payment usage, along with Fintech as a whole, is growing fast in the APAC region – companies must capitalise as soon as possible.