The access to banking services and related app usage across Asia-Pacific is greater than often thought.
So says new research from Rapyd which concluded that 80% of respondents in all countries have a savings account, or debit card, with most people using it regularly.
What’s more, the use of fintech applications like eWallets has exploded. Some 77.6% of Indians, 77.4% of Malaysians, and 70.2% of Indonesians have used an eWallet in the last month. The exception was Japan where, despite recent growth, just 24% of respondents did the same.
The Rapyd 2020 State of Disbursements: Asia Pacific Outlook report claims to provide a first-of-its-kind look at how consumers across Asia prefer to be paid, allowing digital businesses worldwide to grow their market share in the region.
The research looked at existing and preferred methods for getting paid across several transaction scenarios such as Person-to-Person (“P2P”, for example remittances or loans), Business-to-Consumer (“B2C”, salaries, wages, commissions, and rebates), Business-to-Business (“B2B”, cross-border invoice payments) and Government-to-Consumer (“G2C”, government support or subsidies).
The report also found that depending on the use case, preferred payment methods vary country-by-country:
- averaging 70%, Direct Bank transfers are the most popular method
for regular salary transfer across most countries and 80%+ in markets like Malaysia and Singapore;
- eWallets are growing in popularity for personal transactions, such as personal repayment from family, or friends (33.5% of Indians and 24% of Singaporeans chose it as their preferred option), rebates (38% of Indonesians), and sale of personal goods, or services (28.5% Indonesians, and 30% Malaysians and Thais chose to receive rebates into their eWallet).
Security was also thrown up as a big concern, dominating consumer desires in four of the seven countries with 82% of Indians, 75% of Malaysians and Indonesians, and 68% of Singaporeans citing keeping personal information safe as the most important attribute of receiving payments.
Brendan Miller, Head of Global Product Marketing at Rapyd, chipped in with: “While data about how consumers prefer to make payments is widely available, businesses struggle to make payouts to gig-workers, online sellers, and B2B partners using the methods that these beneficiaries prefer and often require. Through this report, we are able to provide actionable information to global organizations as they make critical business decisions impacting both the short and long term health of their companies.”
Perhaps unsurprisingly, the report found that there is no one-size-fits-all approach to global payouts. Every country is unique in its preferences and digital leaders must be prepared to localize their payout experiences to drive beneficiary loyalty and engagement.