Key Factors Shaping the APAC Region’s Payment Landscape in 2024

In the first quarter of 2024, it has become evident that commerce in the Asia Pacific (APAC) region is gearing up for some major changes. This is mainly due to the emergence of new technologies and shifting consumer habits, which are making the payment scene in countries like Australia, Singapore, Japan, and Malaysia actively fill up with innovative solutions.

Therefore, businesses that have operations in the APAC or aim to expand their reach to this region need to stay up to date with local payment trends and adjust their strategies accordingly. Read ahead to find out which key tendencies will be driving transformation in local payments this year!

3 Top Payment Trends Taking Over APAC

The Asia-Pacific region is known for its fast pace of technological innovation, which is why it is often at the forefront of driving unique trends in various sectors, including commerce. Here are some of the most influential factors reshaping the local payments landscape nowadays:

1. Portable In-Person Payment Tools

One of the biggest APAC commerce trends is the rise of portable in-person payment terminals compatible with Android and iPhone operating systems. The demand for such devices has surged during the pandemic years and has not seen a decline ever since, making them a preferred checkout method for many.

With that in mind, it is crucial to note that 57% of APAC shoppers claim that they would abandon a store if they could complete their purchase using their preferred means of payment. This figure surpasses the global average of 55%, reaching as high as 66% in Hong Kong.

Aside from increasing consumer convenience, these tech solutions are reshaping the way brick-and-mortar store shopping is done. After all, they eliminate the need for traditional cashier counters, which results in dynamic and interactive spaces emerging. This shift from conventional physical stores to experience commerce centers is evident throughout APAC.

2. Platform Business Models With Embedded Payments

The rise of platform business models like marketplaces and SaaS has been revolutionary for the way business is done worldwide, with the APAC area being no exception to the rule. To meet the increasing demand for efficiency, such platforms are actively steering away from redirecting users to separate checkout pages and are integrating payment solutions directly into their services instead.

This approach significantly enhances customer satisfaction and loyalty while creating new revenue streams. In fact, nowadays, approximately 35% of SMBs use embedded finance, with leading platforms earning up to 80% of their revenue from this payment channel.

Overall, embracing the embedded finance trend guarantees increased payment efficiency, cost reduction, faster payouts, and a more seamless customer experience. Due to this, more and more businesses across the APAC region explore the opportunities it offers.

3. Effective Use of Payment Data

In the Asia-Pacific region, consumers have become increasingly price-conscious in response to persistent inflation. For instance, in Australia, 59% of businesses registered heightened customer expectations due to the pressure of rising living costs.

As a result, shoppers dedicate more time to seeking out the best deals and expect greater rewards for brand loyalty, which have to be delivered in the form of personalized experiences and promotional offers. Consequently, in 2023, 36% of APAC consumers opted to wait for major sale events such as Singles’ Day, Black Friday, or the year-end holiday shopping season.

To effectively cater to the evolving needs of modern consumers, businesses must adapt their strategies by leveraging the collection and analysis of relevant payment and shopping behavior data. This way, they can develop solutions tailored to individual consumer preferences, such as targeted promotional offers, customized experiences, and incentives aimed at fostering brand loyalty.

Summing Up: What’s the Next Step for APAC Merchants?

Now that you are aware of the key trends shaping APAC’s payment landscape, it’s essential to adapt your commerce strategy accordingly and capitalize on the opportunities presented by these shifts. By leveraging the trends listed in this overview, you will be able to position your business for long-term success and growth within the dynamic Asia-Pacific region.