India has experienced the most significant rise in alternative remittance share for e-commerce payments in the Asia-Pacific (APAC) region, escalating from 20.4% in 2018 to 58.1% in 2023, according to a new report by GlobalData. This surge is largely attributed to the extensive use of mobile wallets, propelled by the Unified Payments Interface (UPI), which facilitates real-time mobile payments through QR code scanning.
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, noted that while most Asian markets have traditionally been cash-dominated, the shift towards alternative payment methods for both online and in-store transactions is accelerating across many APAC countries, surpassing trends seen in the West. The increased adoption of these methods is driven by enhanced smartphone and Internet access, along with the growing convenience of electronic payments and QR code-based solutions.
Countries with historically cash-intensive economies, such as the Philippines, Malaysia, and Indonesia, are also witnessing similar shifts towards digital payments. Gupta highlighted that the popularity of alternative payment solutions in the e-commerce sector is bolstered by rising Internet and smartphone penetration and greater acceptance of digital payments by merchants across the region.
The report further suggests that due to the convenience, speed, and security provided by these payment tools, coupled with anticipated growth in the overall e-commerce market, alternative payment methods are expected to continue gaining momentum, thereby transforming the consumer payment landscape in the APAC region.
Source: Latestly