NTT DATA, a leading IT services company, has revealed five key macro trends which are set to impact Asia’s payments evolution.
First up is the shift from cash to cashless payments which is highly sought by regulators and governments to bring more transparency, accountability and efficiency as well as reduce cash-handling costs.
Second is the rise of digital ecosystems, such as ecommerce/ride-hailing players and their super apps. With a seamless payment as the lynchpin, these digital players are creating viable and sufficiently broad ecosystems that enable customers to exist in the “gated” walls.
Third is payments data which is not just a valuable source of information and revenue stream for merchants. Payments providers have their eye on payments data as their next big revenue stream in the face of declining merchant fees and further cement their value with their customers.
Fourth is cross-border commerce and the focus on the customer journey, and payments convergence to capture new opportunities. The push here is for more interoperability between payment systems and acceptance of domestic wallets in international markets.
And finally financial inclusion. Using payments such as wallets as alternatives for formal bank accounts, especially in markets in which the unbanked population remains high. Wallets used as the catalyst to bring people into the financial system for the first time and offer them a variety of financial products.
Akihiro Ishizuka, Head of Global Payments & Services Division, NTT DATA, said: “Growth rates for mobile wallets and other electronic payments in Asia will remain strong amid the emergence of new digital currencies and new forms of payments. This research makes clear, payments is an area of full of opportunities not only for merchants, as well for payment processing companies within the broader global payment ecosystem. ”