Cash is gradually being replaced by QR code payments and other forms of electronic payments in consumer transactions across Asia, according to Nikkei Asia.
 |
| Electronic payment systems are growing rapidly in Asia, replacing cash transactions. (Source: Nikkei Asia) |
US-based payment processor Worldpay predicts that cash transactions will fall from 47% (in 2019) to 14% of total transactions by 2027.
Efforts to promote electronic payment systems from countries in the region have helped accelerate the transition, while reducing the reach of Western credit card brands.
In Mumbai, India, all transactions are done on smartphones, so tech drivers deliver goods and necessities quickly (usually within 10 minutes). In fact, many delivery services do not accept cash payments.
The value of cash payments in the country is expected to fall from 71% (in 2019) to 10% by 2027.
In 2016, the Indian government partnered with financial institutions to introduce the mobile digital payments system (UPI), which allows users to make real-time payments. The system is available on delivery and other business apps. According to PwC India, more than 131 billion transactions were made through UPI in fiscal 2023.
In mainland China, where more than 1 billion people use Alipay and other e-payment apps, the share of cash transactions is expected to fall to 3% by 2027.
Douglas Feagin, president of Ant International, which operates Alipay outside China, said the company plans to expand its network of stores using its payment service in Asia and other markets. The number of overseas stores accepting Alipay has already exceeded 10 million.
The trend towards going cashless is growing rapidly in Asia, with the share of cash transactions in 14 countries and territories expected to fall to 14% by 2027, higher than Europe’s 12%.
French consultancy Capgemini predicts that by 2028, there will be 1.46 trillion cashless transactions in the Asia-Pacific region, more than four times that of North America, where credit cards are widely used.
In Southeast Asia, a region that is accustomed to using cash and not using credit cards as much as the US and Europe, the growing use of smartphones has contributed to the promotion of digital transactions. With just a phone number and some relevant information, transactions have become more convenient.
 |
| Cash payment rates in 2019 and 2023 in selected countries and territories in Asia. (Source: Worldpay) |
Globally, the share of smartphone payments in stores is expected to reach 46% by 2027, more than double the 22% share of credit card payments.
In Vietnam, cashless payments have become familiar to people. In 2024, there will be about 200 million individual customer payment accounts, an increase of more than 50% over the same period last year. According to data from the State Bank, cashless payments in Vietnam in 2024 will reach 17 billion transactions.
Every day, the interbank payment system processes an average of VND 830,000 billion, of which 95% of transactions are processed on digital channels.
Nikkei Asia commented that nationalism is another factor driving cashless payments in Asia.
India and China are pushing to develop domestic payment networks, challenging international credit card giants like Visa and MasterCard, which charge fees for each transaction and collect data on both cardholders and merchants.
In Southeast Asia, countries are developing QR code payments. Users of Thailand's PromptPay and Singapore's PayNow can transfer money between the two countries quickly. Research is underway to create a cross-border real-time payment system in the region.
Southeast Asian countries are also trying to establish an “Asian settlement bloc” by creating a system independent of payment networks outside the region, according to Akira Yamagami, a researcher at NTT Data Management Consulting in Tokyo, Japan.
Source: https://baoquocte.vn/chau-a-bung-no-thanh-toan-khong-tien-mat-303409.html
Comment (0)