The pandemic has renewed the interest for a broader range of payment technologies with 94% of people in the APAC region saying they will consider using at least one emerging payment method – such as QR codes, digital or mobile wallets, instalment plans, cryptocurrencies, biometrics and others, in the coming year.
According to the Mastercard New Payments Index, 84% of consumers in APAC already have access to more ways to pay compared to one year ago while 74% of respondents said that they would shop at small businesses with greater frequency if additional payment options are offered.
“Mastercard’s study finds that people in the Asia Pacific region haven’t just adopted new payment technologies—they’ve made deliberate shifts based partly on necessity, but also on considerations around personal safety, security and convenience, at a time when these concerns were paramount,” said Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific, Mastercard.
“Consumers in Asia Pacific have already gained recognition globally for their openness to new technologies and innovation, and these findings confirm that this trend is only set to continue as more digital payment options rapidly become mainstream in this part of the world.”
In the long run, the use of a range of payment technologies is steadily in demand as people’s comfort with and understanding of them increases - while the use of cash steadily decreases.
Where cash is no longer king
For the coming year, 69% of respondents in APAC say they plan to use cash less frequently. Meanwhile, digital or mobile wallets have gained significant popularity amongst consumers in APAC, with 68% of respondents anticipating using this type of payment in the next year – higher than the global average of 62%.
“This behaviour shift is reinforced by people’s desire for choice – with 85% of consumers in APAC saying that they expect to make purchases when they want and how they want. Businesses that can provide multiple ways to shop and pay will be best positioned to meet the unique needs of this moment that are shaping the future of commerce for years to come,” added Malhotra.
Regardless, security is still a key concern, with 1 in 4 respondents in APAC (27%) reporting that they were victims of fraud in the last year.
79% indicated they would be willing to trying new payment technologies if they perceived them to be safe, while 85% want to be sure the payment options the merchant offers are secure. As such, consumers rely on issuers and networks to keep their financial information secure, with 45% agreeing that they would place their trust in their payment provider to follow security best practices, so they can be more hands-off.