The Asian payment market: a look from the inside

    The Asian payment market: a look from the inside

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    Among the states that make up the huge business conglomerate of the Asia-Pacific region, the most famous is the Chinese payment industry. However, it would be rash to judge the entire region by China alone - the markets of Southeast Asia alone are very diverse and have a lot of specific features.

    The Asia-Pacific region is more than half the world's population and is home to more than 4.1 billion people. The region includes 47 countries, among which we can distinguish the states with the highest degree of economic development - China, Hong Kong and Japan, representing East Asia. The APAC also includes Southeast Asia, including Singapore, Malaysia, Indonesia, Thailand, the Philippines and Vietnam. The level of digitalization of a number of Asian countries has increased significantly in recent years, primarily due to the increased availability of the Internet and the penetration of payment technologies and e-commerce. It is not a secret that the world is increasingly interested in China, everyone is interested in what is happening in this country, but the key trends in the region are not limited to China. The development of the payment industry in many Asian countries is related to the behavior of consumers who use smartphones as a payment instrument and simultaneously as a device with which to access the Internet and use mobile commerce services. In this case, one of the most acute problems of the Asian payment market is related to the lack of credit cards for a large part of the population. So, very often the only means of payment here is a cell phone and a mobile wallet tied to a number.

    Thanks to such solutions, China has become one of the leaders in the world payment industry. For example, you know how Alipay and WeChat work. These services are used by the majority of people in the country, for them it is the most popular method of payment for purchases. And if your company plans to work successfully with Chinese clients, you need to provide them with such opportunities as payment via mobile application and transfer to mobile wallet.

    Southeast Asia is in stark contrast to neighboring regions. For example, in a country like Singapore, credit card penetration is extremely high. This explains the activity of local users of Samsung Pay, Google Pay and Apple Pay. The reason for the high popularity of the latter is the government's desire for credit cards.

    In contrast, in Indonesia, credit card penetration is less than 10%, so most people use local payment solutions, mainly mobile wallets.

    It is worth noting that e-wallets are the fastest growing payment instrument in Asian countries. First of all, this is due to the active growth in sales of mobile devices. Wallets can be linked to credit cards or a bank account.

    That is why Omniunit LTD sees the Asia-Pacific market as an ideal ecosystem for the introduction and development of blockchain payments.

    By PLUS Magazine

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