Asia is the Undisputed World Leader in Payment Innovation
Yet another report shows how Asia is teaching the world how to do payments!
This massive payment report by Edgar, Dunn & Company is a great read and shows how, once again, Asia is the undisputed innovation leader in payments.
This report has a lot to offer, there is literally something for everyone! I can’t recommend it enough, even though its take on CBDC is depressing.
The real stunner is that North America (the US) was second to last in the innovation ratings. When the Caribbean region beats you for last place that says a lot!
Whether it's CBDC or instant payments, the US is falling behind.
👉TAKEAWAYS
🔹APAC is the innovation leader: The Asia-Pacific (APAC) region is expected to lead payment innovations over the next 3-5 years, with 50% of respondents identifying it as the top region. APAC’s dynamic growth is fueled by advancements in mobile and instant payment
🔹 Europe takes second place in innovation with North America coming in last among major economies!
🔹 Instant payments and Mobile are on fire: A notable 68% of respondents identified the rising demand for instant payments as a key trend, while 61% highlighted the growing adoption of mobile payment solutions.
🔹 Transaction value through mobile wallets accounted for $15.5 trillion in 2024 and is expected to reach $23.0 trillion by 2028
🔹 AI’s role in revolutionizing payment can be viewed from two key perspectives. From a process-oriented perspective, AI enhances internal operations by improving efficiency, while on the client-oriented front, AI revolutionizes customer interactions.
🔹 Blockchain’s expanding influence: With around 300 million global users, the blockchain market has seen significant growth, drawing increased investor interest and substantial funding
🔹 IoT device adoption will soon reach ‘critical mass’: The IoT payments market is estimated to total $711 billion in 2024 and is forecast to sustain fast growth with large untapped potential to digitize and automate a significant volume of C2B and B2B transactions
🔹Alternative Payment Methods have been revolutionizing the way we pay: APMs refer to any means of making a payment other than cash or credit / debit / prepaid cards. APMs hold a dominant position in the global e-commerce landscape and are expected to reach 77% of global transaction value by 2028.
🔹 CBDCs: Central Bank Digital Currencies are being researched and piloted. The outcome has formed a divisive set of opinions. Wholesale CBDCs may offer greater long-term value
🔹 Open Banking, developed to drive competition and innovation, is now evolving into broader Open Finance and Open Data initiatives but progress has been hindered by insufficient adoption.
👊STRAIGHT TALK👊
Payments are changing every facet of our lives, and Asia is in the lead.
This shouldn’t come as a surprise to regular readers, as I state regularly that China and much of Asia is a decade ahead of the West.
Still, as the person making that claim, it’s great to see how the rest of the world is gradually acknowledging and catching on to Asia’s advances.
Instead of Asia copying the West, look for the West to copy Asia in the payment space in the coming years.
As I’ve said for some time, Asia is a crystal ball that can show the West the future of payments.
But you know that already because that’s likely why you subscribed!
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