Real-Time Payments Now as Popular as Cash in Southeast Asia as Pandemic Accelerates Digitization of Payments, New ACI Worldwide Research Reveals
Three in five (61%) consumers in
Southeast Asiaselect real-time payments – such as DuitNow ( Malaysia), PayNow ( Singapore) and PromptPay ( Thailand) – as a preferred way to pay in 2021, equal to cash (61%)
Strong consumer demand for real-time payments demonstrates urgent need for payments modernization across
Southeast Asiaand heralds the emergence of a regional cross-border, real-time payments ecosystem
This shift towards real-time payments has been dramatically accelerated by changing payment necessities and preferences caused by the COVID-19 pandemic. Almost a third (30%) of consumers in
Due to rapid technological change, consumers now expect mobile-first and real-time experiences — however, payments have often lagged. The development of real-time payment systems enables consumers, merchants and financial institutions to pay friends and customers, settle bills, and transfer money instantaneously. While cash has always represented an “immediate” mode of payment, the advent of real-time payment rails brings this concept into the digital age with faster settlement periods, notifications and consolidated reporting.
“This fundamental shift in consumer demand and payment expectations sets forth a challenge for Southeast Asia’s banks, financial institutions and merchants,” said
More than half (54%) of consumers in
Southeast Asiawho have travelled internationally in the past expect their usage of real-time payments to increase when they next travel.
- 70 percent say the ability to use their preferred payment methods while travelling will be more important now. As a result, a quarter (26%) expect their usage of traditional payment methods such as cash to reduce when they next travel.
- Three quarters (75%) say payment safety and fraud prevention are more important now, while more than two thirds (67%) say transparency of interchange rates is now of greater importance.
While the number of consumers in
Almost a quarter (23%) of consumers are shopping more at merchants based in other
Southeast Asiacountries since the start of the pandemic, while a similar number (22%) are shopping more in stores outside of Southeast Asia.
The most popular factors that encourage these shoppers to purchase products and services more regularly from international sellers are:
- Reassurance that payment and personal data are safely transmitted, secured and stored by international sellers (36%)
- Ability to pay with preferred domestic payment method (25%)
- Having a wider range of payment options than is available at present (21%)
“A focus on payments modernization is vital for financial institutions that want to ride the wave of the region’s biggest and most transformative payments trend — the emergence of a cross-border, real-time payments ecosystem,” added Choo. “Unencumbered by legacy payment systems that can impede innovation in mature markets, countries in
Find out more about consumer real-time payment preferences, and about how financial institutions and merchants in
The YouGov study was conducted during