Visa and Mastercard move over, in SE Asia cross border payments are going mobile!
SE Asia’s QR-based mobile payments are being linked to form a newly integrated payment network that will rival the West’s cards!
This is a big story but the WEF misses half of it! Let’s see what they left out.
👉TAKEAWAYS:
Asia is leading the world in payments, and cross-border payments over mobile is another example of its prowess.
The DNA of payments in Asia and SE Asia is different from the West’s, relying on mobile payments rather than credit cards.
Asia copied the tremendous success of WeChat and Alipay in China throughout the region to bring payments to populations that were NEVER serviced by cards.
Asia’s mobile payment systems use QR codes and are instant. These networks are called either “Retail Real Time Gross Settlements” or simply “Fast Payment Systems” (FPS).
These FPS systems are now united across borders thanks to critical research called “Project Nexus” conducted by the Bank for International Settlements (BIS).
One example of connectivity is SIngapore’s PayNow connecting with Thailand’s PromptPay.
Other national pairs with Singapore’s PayNow include India’s UPI and Malaysia’s DuitNow. More are coming, including Europe’s “target TIPS” system.
WHAT THE WEF IS MISSING
The WEF left out Alipay+ as a connector for Asia’s mobile payment networks.
Alipay+ allows cross-border QR code payments and is a real contender in this market.
Alipay+ offers the advantage of easier implementation for payment providers at the cost of razor-thin additional margins on transfer prices.
Alipay+’s advantage is that it acts as the bridge between nations and there is no need to “hard-wire” national FPS systems one pair at a time. This is big!
Alipay+ announced that it is now connecting 10 payments systems throughout Asia, these systems also connect to EU payment systems!
👊STRAIGHT TALK👊
The WEF’s report shows the tremendous potential of interlinking mobile payment systems throughout Asia.
That payment can flow across borders instantly and with razor-thin costs, benefits all nations and their people. This will allow remittance transfers and cross-border trade to flourish, which is simply good for everyone.
SE Asia is building the payment network of the future. Visa and Mastercard won’t be the only signs you see at the checkout counter for long!
As Alipay+ has already shown, by connecting Asia’s QR-based FPS systems to the European payment networks, this is a trend that won’t stop. WEF left them out of this report because it was sponsored by Thailand’s central bank. Alipay+ is the competition!
For those saying that Visa and MC work fine for cross-border payments, check out the fees for foreign exchange or add-ons next time you get your bill. All of these mobile payment systems work on margins that make cards look usurious.
Would you like to save on transfers?
I know I would!
This is a picture from a Japanese convenience store. Look at how many payment options are available. Note Alipay+ logo and how small the Visa and Mastercard symbols are by comparison!
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