The latest publication from Hamburg-based desk research company yStats.com titled “Snapshot: Asia-Pacific Digital Payment Forecasts 2022-2025” shares insights into the digital payment market development, latest trends, forecasts in Asia-Pacific, including the effects of the COVID-19 pandemic. The publication reveals that the volume of mobile wallets in use in APAC is predicted to surpass half a billion by 2025.
The number of cashless transactions in Asia-Pacific is forecasted to exceed one trillion by 2025
The digital payment industry in Asia-Pacific was substantially affected by the COVID-19 health crisis in 2020 and this resulted in major shifts in the development of the market. Although non-cash transactions were already commonly used in many regions before 2020, the adoption rate of such payments accelerated significantly in the Asia Pacific region and is projected to continue to increase. The region is expected to contribute the most in the number of cashless transactions globally in 2021. This area already had a mature non-cash payment market in 2020, however, during the next 5 years, the figures are projected to progressively increase.
Asia-Pacific is forecasted to remain the biggest regional market for mobile wallet payments in the world
Although mobile payment usage was extensive in some regions before the COVID-19 pandemic, the health crisis accelerated the trend globally in 2020. This is due to the enhanced security and cross-channel payment features of mobile contactless payments. In 2021, the leading country in the share of proximity mobile payment users is expected to be China, accounting for more than 4 in 5 of smartphone users, followed by South Korea. In fact, in China itself, the percentage of proximity mobile payment users out of the whole population is projected to exceed the 65% mark by 2025. Furthermore, in several economies in the region, mobile wallets have been a crucial way to make payments, as authorities in some markets intend to reduce the usage of cash. In the Asia-Pacific region, the number of mobile wallets in use is projected to more than double from 2021 to 2025 and the region is predicted to lead the world in the usage of the mobile wallet.