The Impact of the Top 3 Strategic Imperatives on the APAC Payment Industry

Transformative Mega Trends

• Why: Embedded payment is changing payment and financial technology, and it is expanding into industries beyond the financial sector, where many organizations deploy it to modernize their legacy systems in a shift toward cloud-based technologies, unlocking the full potential of payments.
• Frost Perspective: The Asia-Pacific (APAC) market will become fully aware of the benefits of cloud-based technologies (e.g., open API and software point-of-sale) during the forecast period. Expanded use case applications, customer journey experience, savings in terms of transaction cost and processing time, and clear return on investment (ROI) will be essential for the wider adoption of white-label embedded payment solutions.

Innovative Business Models

• Why: Global companies such as Fidelity National Information Service (FIS), Fiserv, and Global Payments are investing billions of dollars in providing white-labeled embedded payment solutions and enhancing their payment product lines with incremental technology investment to cater to emerging use cases.
• Frost Perspective: White-label payment solutions will increasingly be used in the retail, e-commerce, travel, and public sectors. Cloud-based technologies will be necessary to create innovative business models (e.g., software-as-a-service, payment-as-a-service) since they transform how companies continuously innovate to address market needs or regulatory changes.

Industry Convergence

• Why: Successful white-label payment deployments involve the seamless integration of cross-industry solutions, including digital and network infrastructure, cloud and edge services, sensor devices, and software development kits (SDKs).
• Frost Perspective: Adoption of payment technologies is at a nascent stage due to the technology's limitations and merchant acceptance. In this context, payment providers need to focus on improving digital infrastructures, merchant networks, and cross-border payment corridors to accelerate adoption.

Scope of Analysis

• This analysis of APAC payment opportunities and market trends provides insights into emerging technologies and services in the payment space. More specifically, it focuses on the adoption of digital payments.
• Frost & Sullivan’s examination of the current market scenario provides predictions for 2024 segmented by region, highlights selected industry best practices, and identifies the trends that will determine the future of digital payments in the region.
• In this report, Frost & Sullivan examines the market landscape and the available modes of digital payments. Market segmentation covers card (e.g., credit and debit) payments, online payments, and digital wallets. Forecasts are also segmented according to those three spaces. The market size is calculated based on the total value transaction, providing industry stakeholders with an indicative figure of the potential total addressable market.
• This study examines growth opportunities in the payment market in detail and analyzes the key restraints and drivers to adopting digital payments.
• Finally, this report profiles selected payment service providers (PSP) and digital wallet providers, examining key companies based on their focus area, breadth of product offerings, and market segment orientation.

Segmentation

Digital Payments

Card Payments

• Card payments encompass credit and debit card payment transactions.
• Transactions require payment terminals or point-of-sale (PoS) system.
• The PoS system has evolved over the years to include technology trends such as mobile PoS and software PoS (SoftPOS) to cater to the increasing demand from merchants. This key emerging trend enables merchants to accept card payments using mobile phones or any connected devices without additional hardware.

Online Payments

• This segment focuses on online payments, where end-users transact through digital platforms such as websites or mobile applications. Payment terminals or card readers are not required to process this type of payment.
• The industry often defines online payment as card-not-present transactions, which means that physical card payments are not present at merchant checkout. These transactions are carried out remotely, such as phone orders, recurring payments, or invoice payments.

Digital Wallets

• Digital wallets, often known as electronic wallets, are a type of cashless payment that involves infrastructure connected to the user’s fund (credit or debit account). Several infrastructure types are available for digital wallets, including mobile apps and near-field communications (NFC) modules.
• Current key trends in digital wallets focus on emphasizing security. They involve features such as tokenization, biometric authentication, and distributed ledger technology that provide additional security elements to safeguard the user’s payment credentials.

Competitive Environment

Key Competitors

Card and Online Payments

• Adyen
• ACI Worldwide
• FIS
• Fiserv
• GHL
• GlobalPayments
• iPay88
• NCR
• NTT Data Payment Services
• Worldpay
• Razer Pay
• RazorPay

Digital Wallets

• Alipay (Ant Group)
• Applepay
• LINE Pay
• Google Pay
• GCash
• GrabPay
• Gopay
• Kakao Pay
• MoMo
• Toss
• Touch n Go
• True Money
• PayMaya
• Paytm
• PhonePe
• ZaloPay