REVEALED: Payments boom in South-East Asia
Analysts of Robocash Group have revealed that the total volume of payments in Southeast Asia will reach $53.9 tn by 2027. Vietnam and Indonesia will account for the largest shares in this figure. In Singapore, the payment volumes will rise by 68% and reach $1.7 tn.
Analysts considered payments by bank cards, bank transfers, electronic money, and cash. The total amount of payments made in the Philippines, Singapore, Malaysia, Indonesia, Vietnam, and Thailand in 2022 by physical and legal entities amounted to $29 trillion, which is 2 times more than in the previous decade. This value is higher than the GDP of the US or China and is also comparable to 29% of the total global GDP in 2022.
Analysts of the group explain: “One of the reasons for rapid growth in Southeast Asia’s payment transactions recently is the boost of digital technologies caused by the Covid-19 pandemic. From 2020 to 2022, the amount of payments in SEA increased by 45%. Secondly, there is strong support from the state. Each country in the region has its own national digitization programs, which include the digitization of payments. Thirdly, as of 2022, the total volume of private domestic and foreign investments in the fintech payment infrastructure of SEA amounted to about $60 billion. $26.5 billion of this amount was invested between 2021 and 2022.”
The biggest share in the volume of payments in 2022 was made by Vietnam and Indonesia – 29% and 39%, respectively. This can be explained by the amount of money in circulation and its value against the US dollar.
Based on historical changes and considering the development of the natural trend, analysts of the group made a forecast of payment transactions till 2027. It is expected that the total volume of payments across Southeast Asia will grow by 86% reaching $54 trillion by 2027. Vietnam promises to grow the most – by 152% to $21.5 trillion while surpassing Indonesia with its $18.3 trillion. Singapore will be the second fastest-growing country in these terms. Its payment volumes will rise by 68% and reach $1.7 tn in 2027.
This is a press release from Robocash Group. Asia Markets sometimes makes small edits for editorial reasons.