Covid-19 promotes the trend of ‘cashless payments’ in Asia-Pacific

Along with the worrying spread of the Covid-19 pandemic, digital payments are becoming a trend not only in the world, but also in Asia Pacific.
Consumers are increasingly actively using e-commerce platforms as well as quickly adopting mobile or digital payment methods. It is estimated that in many countries, the Covid-19 pandemic has shortened the digital transformation process by at least 5 years.

Now, instead of always worrying about carrying too much cash, consumers can go out with peace of mind with just a credit card or simply a phone and smart watch. In many countries, the Covid-19 pandemic has shortened the transition to cashless payments. Many central banks around the world are also planning to issue digital currencies, led by the People’s Bank of China. “Each country has its own development needs,” said Zhou Xiaochuan, former Governor of the Central Bank of China and vice-president of the Boao Forum for Asia. We can expect that in the long run, the world’s digital currencies can integrate and exchange rate problems can become less complicated. This is a development direction.” Illustration: KT Late last year, Google, Singapore’s Temasek, and venture capital firm Bain & Company jointly conducted a study on the adoption of digital platform technologies across Southeast Asia. The results show that, in the 6 largest economies of Southeast Asia (Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam), the number of people accessing the internet reached 40 million people for the first time last year, raising the number of internet users to 40 million people for the first time in 2020. the total number of internet users in the region to 400 million, about 70% of the population of these countries compared to 250 million in 2015. At the same time, the size of the region’s internet economy also surpassed the $100 billion threshold for the first time. If this trend is maintained, the report predicts, this number will likely triple to more than $300 billion by 2025. A newer Mastercard report released on May 4 adds more detail to the day-to-day impacts of the pandemic, particularly on consumers’ daily spending habits. The report shows that access to digital payment technologies has increased in the Asia-Pacific region. Specifically, 94% of the respondents said that they would consider using at least one emerging payment method in the next year such as QR code, e-wallet or mobile phone, installment plan, cryptocurrency, credit card, etc. biometrics… According to Mastercard’s Executive Vice President of Product and Innovation – Sandeep Malhotra, consumers in Asia Pacific have seen major changes in their payment habits and this is not only driven by demand, but also by demand. based on considerations of personal safety, security, and convenience, at a time when these concerns are paramount. However, economic experts also warn, whether digital currency or digital asset, all must integrate and serve the real economy and the global financial crisis of 2008 is money label lesson. Once the financial sector separates from the real economy, the risk of deviating is inevitable.