Digital payment applications look strong in Asia-Pacific (APAC), media company, Global Data reveals.
Data and analytics company, GlobalData, anticipates that as the preference for digital payments goes up, they will soon become the standard. This has already taken place in various markets by certain players looking to enhance the level of trust and safety they offer via customer purchasing decisions, and the convenience e-payments provide.
Amid the demonetisation decision, India focused on exploring cashless options via e-wallet capabilities through platforms such as Paytm, MobiKwik and Oxigen.
In 2017, global intelligence company, Mintel, reported that daily transactions using these platforms rose from 1.7mn to 6.3mn, amounting to a 267% rise.
“As the Indian government launched a demonetization program, consumers were forced to use electronic payments, though cash did not completely disappear. As a result, all types of retailers understood the need to offer cashless payment methods to remain competitive," emphasised Andreas Olah, Lead Analyst for Digital Retail at GlobalData.
All-in-one payment solution
While cashless payments remain preferred throughout various APAC markets, trends do differ. In China, for example, consumers tend to lean towards using the all-encompassing WeChat platform for payments.
As m-commerce gathers pace in APAC, collaborations are occurring to leverage digital growth and consumer preferences. In January 2017, Amorepacific-owned beauty name Innisfree teamed up with the Bank of China to launch mobile-based payments.
Emerging options on the market
Along with Paytm and WeChat that offer contactless debit and credit card payments, brands such as iZettle are now entering the market. These act as an e-commerce platform to provide small retailers e-payment options with little effort.
There are applicable, resourceful and cost-effective for smaller retailers in the cosmetics and personal care space, enabling retailers to move away from relying on a cash economy.
“Safety and trust are important factors for the increased adoption of cashless payment solutions in addition to greater convenience including the speed of the transaction. They feature advanced encryption technology, and secret keys used in payment transactions do not reveal any passwords or other sensitive information such as credit card numbers,” Olah observed.
What should brands do?
Commenting on the realisation amongst brands for the need to appreciate and adopt other forms of payment, Olah added: “Retailers are recognising the need to accept the payment types that customers prefer if they do not want to lose out on business. Adoption rates are likely to rise for digital wallets, as well as for contactless card-based payments as they are becoming the standard in many countries.”
“The biggest disruption is occurring in developing countries across Asia, Latin America, and Africa where digital wallets are also opening up banking services to millions of low-income consumers who have previously relied entirely on cash and checks,” Olah concluded.