Asia outpaces West in terms of mobile wallet adoption

Mobile wallet adoption in Asian markets like China, India and Taiwan is much higher than their Western counterparts such as the US, the UK and Germany, finds leading data analytics company GlobalData.

According to a new survey published in GlobalData’s 2018 Mobile Wallet Analytics, increasing popularity of smart devices has enabled rapid adoption of mobile wallets in the region, with mobile wallets now gradually replacing cash payments.

Sowmya Kulkarni, Payments Analyst at GlobalData, says: “The availability of low-cost smartphones, rising Internet penetration, growing awareness of mobile payments and the proliferation of mobile wallets has resulted in Asian countries shifting from cash transactions to mobile wallet payments, skipping cards to a certain extent in the traditional payments value chain.”

Notably, this trend has not been seen in Western countries despite widespread smartphone and tablet adoption. This is because card-based payments are so familiar and common that there is no real reason or urgency to adopt mobile payments.

QR code payments, which avoid the higher charges associated with card payments and remove the need to set up point of sale terminals, have come to dominate in Asia Pacific. The low cost of accepting these payments and the high customer penetration of wallets such as Alipay and Paytm have driven merchants to increasingly adopt this form of payment instead of investing in card acceptance devices. For instance, the merchant service fee on QR code payments in India is around 0.3% – much lower than the 1.8% average fee on credit cards

“The seamless payment experience offered by mobile wallets has redefined the way consumers carry out their day-to-day activities. The convenience and comfort offered by mobile wallets will further evolve to include innovative and simplified services for consumers. Cryptocurrency-based wallets are just one example, with merchants in several Asian markets now accepting payment via this method,” concludes Sowmya.


Please enter your comment!
Please enter your name here

Latest News

Setel introduces Deliver2Me, nation’s first in-car shopping service

Setel, an e-payment solution that enables fuel purchases directly from mobile devices, is delivering on its promise to disrupt the retail-on-the-go scene...

Jeffrey Cheah Foundation to launch endowment fund

Malaysia’s largest education-focused social enterprise Jeffrey Cheah Foundation, has announced its plan to launch an endowment fund. The endowment fund targets to...

Ferrari Malaysia introduces the SF90 Stradale

Naza Italia, official importer and distributor of the Ferrari brand in Malaysia, has launched the highly anticipated SF90 Stradale, in conjunction with...

MARii signs MoU with Persona to develop human capital development programme

The Malaysia Automotive, Robotics and IoT Institute (MARii) and Persona Energy Sdn. Bhd. (Persona) has inked a Memorandum of Understanding (MoU) to...

Service sectors record 1,316 approved projects with investments of RM28.6 billion.

From January to June 2020, the nation's services sectors recorded 1,316 approved projects with investments of RM28.6 billion. These...

Must read

Empowering Malaysians to become informed investors one app at a time

With a goal to build 500 applications that focuses on enabling action, Reactive Labs, co-founded by George and Riza, aims to go...

Bigo Live: A growing sensation in an industry with a big appetite

The live-streaming industry has seen a massive growth in years. From the likes of Vimeo to Facebook Live, the industry has grown...

Embed a proper digital literacy lesson in the school curriculum

By Afifah Suhaimi Amidst the drastic growth of internet users this year – with almost one million additions compared...

How to hire talent in a post Covid-19 world

According to the Global Startup Ecosystem Report from Start-up Genome, 72 percent of startups saw an average of 32 percent fall in...