A MasterCard report has highlighted a considerable increase in the incorporation of new technology in payment systems across the Asia-Pacific. While there are still concerns, new technology plays a more significant role in online and offline payment systems than ever before.
Digital payments
Regarding digital payments, there are certainly signs that the general public and businesses are softening their concerns about new technology. The report shows that:-
• 69% have increased usage of at least one digital payment system in the last year
• 62% of those surveyed use QR codes
• 58% use digital wallets
• 58% use biometric payments
• 40% of APAC consumers have reduced cash transactions over the last year
The value of digital payment systems is there for all to see. If we look at the likes of Vietnam, a country which has been laying the foundations for digital payments and digital platforms for many years, this has created a more robust andnimble-footed economy.
Biometric payment systems
There is undoubtedly a growing acceptance of biometric payment systems, with many consumers highlighting convenience and security but expressing privacy concerns. Some of the telling feedback includes:-
• 70% of consumers believe that biometric payment systems are easier than traditional systems
• 69% agree that biometric payment systems are more secure
• 72% expressed concern about parties with access to their biometric data
• 53% had used biometric payment systems for at least one purchase in the last 12 months
While many people have genuine concerns about biometric payment systems, it is a technology which has shown significant improvement in recent times. Seen by many experts as the most secure form of identification, we expect further progress in the short, medium and longer term.
Buy Now Pay Later
There is no doubt that Buy Now Pay Later is the latest consumer trend sweeping Asia-Pacific, Europe, and the rest of the world. Some of the take out data from the survey includes:-
• 83% of those that use Buy Now Pay Later still have concerns
• At 55%, the top reason for using Buy Now Pay Later is low or no interest
• Second on the list at 51% is the ability to expedite big purchases
• Third on the list at 49% is emergency purchases
While consumers find Buy Now Pay Later services very useful, they have recently operated somewhat under the radar. However, this is set to change in the short term, which may give consumers more confidence.
Cryptocurrency
While there was a greater awareness of cryptocurrencies, there is still a lack of real understanding and concern about recent financial headlines. In the survey, we learnt that:-
• 55% of those questioned were pessimistic about the value of digital currencies/assets
• 60% were in favour of government regulations
• 55% would be more comfortable if cryptocurrencies were issued by recognised/reputable organisations
Digital/crypto has attracted some unwanted headlines recently, with several parties experiencing financial difficulties. However, deemed by many as "too big to fail", again, regulators will most likely get more involved in the short term.
Summary
While payment systems have developed over the centuries, we have seen giant steps forward in incorporating new technology over the last few years. However, whether consumers and businesses are moving forward at the same pace is debatable. Still, the report from MasterCard is in-depth and offers an interesting summary of the current situation.