Over the last decade, the Asian banking market has been on the cusp of a financial revolution. Being one of the most economically dynamic regions in the world, there is enormous potential for digital platforms to thrive here, including internet banking and digital wallet solutions.
Market research has shown that in the wake of this ongoing COVID-19 crisis, there has been an ever-increasing rise in the number of transactions taking place online, across the various e-wallet digital solutions. Since STICPAY inception in 2018, we’ve garnered a vast customer base in the Southeast Asian countries and attracted users, particularly in Singapore, China, Malaysia, Indonesia, and the Philippines.
Surveys conducted over the last year showed that as many as 54% of merchants and businesses cited that they are willing to accept e-wallet payment options. Not only this, but over one-third of Asian consumers also said that they were willing to shift their traditional banking activities, such as using credit cards and money transfer, to various e-wallet solutions available in the market today. In fact, in countries like Thailand, China, Malaysia, India, Vietnam, Singapore, and Indonesia, more than 12% of consumers have already moved on to the non-banking e-wallet solutions.
E-Wallet Market Size and Growth in Asia
Asia is a mobile-first region. The continent has witnessed an explosive rise in the adoption of mobile users making it a leading choice for global businesses. Several factors such as affordable devices, enhanced network reachability and a progressive middle class have all made steered 90% of South East Asia’s internet users to the mobile. These assertions from Google’s e-Conomy SEA Spotlight 2017 Report have caught the interest of digital wallet products in the west. It is safe to believe that by the end of 2023 the global digital wallet market will value 2.1 trillion and Asia will be at the helm of it.
Countries like China and India that are home to more than 50% of global mobile users have been instrumental in putting the APAC region on the top of the pyramid.
E-Wallet Usage
To better understand e-wallet usage in Asian countries and uncover crucial market information, we recently survey Asian users of our e-wallet solution. Asian users consider fast withdrawals (32.2%) and low transaction fees (18.4%) as the main criteria for choosing e-wallet services. The survey also uncovered that the respondents mainly use e-wallet solutions for trading (54%) and online gaming (30.6%). To discover the above findings, we surveyed 400 Asian e-wallet users with respondent countries, including Indonesia, the Philippines, Thailand, Indonesia, Malaysia, Singapore, and Hong Kong.
While trading (54%) and online gaming (30.6%) lead as the main use-cases of e-wallet services, 9.6% of the respondents utilize digital wallets for online shopping. The remaining respondents specified transfers to family and friends (3.6%) and receiving a salary (1.6%) as the primary use of the solutions. In addition to fast withdrawals (32.2%) and low transaction fees (18.4%), Asian users ranked prepaid cards (12.7%), local bank wire options (11.9%), diverse deposit methods (9.6%), safety and security (8.6%), cryptocurrency support (5.4%), and multi-currency features (1%) as the most important criteria for choosing an e-wallet solution.
How Can Businesses Ace to Become Leader in Asia?
Given the growing awareness and competition in the global e-wallet solution market, it has become inevitable for businesses as well as consumers to become a part of this digitalization wave. For beginners, businesses should be open to the idea of adopting multiple e-wallet solutions, which would give consumers the option to make payments conveniently, hence expanding their customer base. For instance, new users can find the wallet QR code scanning system a little intimidating as compared to seasoned consumers. Hence, adopting multiple e-wallet solutions for their business will make it easier for businesses to cater to a wider audience.
Also, with the rising stream of new and improved e-wallet solutions in the Asian market, merchants and businesses must integrate multiple payment options of checkout. With the inclusion of an easy-to-use e-wallet solution, businesses can help remove digital friction from their consumer’s shopping experience.
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Originally published at https://www.sticpay.com on September 3, 2020.
