A recent article from Finextra highlighted results from GlobalData research that alternative payments are really making inroads in the Asia Pacific market, with online shopping predicted to hit $1.6 trillion this year. Perhaps the most interesting statistics from the report demonstrate the huge market share of alternative payments in the region in terms of method channels. In the first quarter of 2018, alternative payment methods accounted for 51 per cent of the total ecommerce transaction value in APAC, up from 49 per cent in the last quarter of 2017. Meanwhile, payment cards accounted for 28 per cent of transaction value, bank transfers 15 per cent, and cash and cheques six per cent.
Considering the popularity of Alipay in China and the subsequent adoption other mobile payment providers in the surrounding countries, it is not surprising that mobile is high up on the list of preferred consumer payment methods. It is often easy for more developed regions to assume that they will be at the forefront of new technological trends, however, regions where financial services and behaviours aren’t as developed can often skip over more traditional banking habits and really drive innovation at a large scale. When it comes to alternative payments and the mobile device, Asia Pacific is the region to watch.