SE Asia's QR Digital Payment Revolution: Transforming Cross-Border Trade & Inclusion

Real-time payments promote local currencies and reduce USD exposure

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The IMF has a MUST-READ report covering Southeast Asia’s (SEA’s) QR-based digital payment revolution that is transforming cross-border payments, promoting local currency usage, and boosting trade and inclusion.

Humble QR payments, born in China back in 2014, are now changing all of SEA and especially Thailand, a local leader in digital payments, including CBDC.

The IMF reports domestic QR payments are exploding throughout the region: 300% growth in Thailand, 550% in Malaysia, and 467% growth in the Philippines, all for 2023-24.

But what is happening now is even bolder as QR payments have just begun to go cross-border to reduce cost and time on Asia’s astounding 32% global share of cross-border transactions.

To do this, Asia is connecting QR payment systems to allow bilateral real-time transfers in a collaborative effort between governments, who built the real-time payment networks, and local private payment providers.

The drive for these connections is driven by tourism, with intra-ASEAN tourism accounting for 42% of all visits, and the region’s financial backbone, SME businesses.