Mobile Wallets Triumph Against Traditional Payments
The growth of digital online spending has popularized digital payments such as mobile wallets throughout APAC, overtaking traditional payment methods. Mobile wallers have overtaken classic payment methods.
The growth of digital online spending has popularized digital payments such as mobile wallets throughout APAC, overtaking traditional payment methods.
The latest Experian Global Insights Report shows mobile wallets have overtaken classic payment methods such as credit cards. Other markets also show significant use of mobile wallets and other digital payment methods.
Experian polled 6,000 consumers and 2,000 businesses in 20 countries – Australia, Brazil, Chile, China, Columbia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, Netherlands, Norway, Peru, Singapore, South Africa, Spain, United Kingdom, and the United States – on the significant shifts in consumer preferences and business strategy in the past seven years.
The study outlined that 62% of respondents are currently using mobile wallets, while 63% still rely on traditional payments. About 81% mentioned that a positive digital experience would help cement online payments. For business, more than half (53%) of users said their online spending had shot up in the past three months.
New payment methods such as mobile wallets, peer-to-peer (P2P), and Buy Now Pay Later (BNPL) give shoppers payment options for better financial inclusion in the APAC where the largest unbanked populations reside.
The study also revealed that BNPL services are gaining momentum in the region, and could exceed credit card usage in Australia (28%), China (28%), and Indonesia (32%) where it has surged in the last six months.
About 23% of consumers polled say their digital expectations have not at all been met, especially in Singapore, where only 20% are satisfied with their digital experiences.
Amid increasing concerns about data protection, the report found that APAC consumers are willing to share personal data with businesses in exchange for better services.
