94% of consumers in Asia-Pacific considering using emerging payment methods this year

KUALA LUMPUR (May 17): 94% of consumers in the Asia-Pacific region are considering using emerging payment methods this year — according to Mastercard New Payments Index conducted across 18 markets globally.

In a statement, Mastercard found that 94% of the people surveyed in the Asia-Pacific region would consider using at least one emerging payment method, such as QR code, digital or mobile wallet, instalment plan, cryptocurrency, biometrics and others, in the coming year.

The survey also revealed that 84% of consumers in the region already had access to more ways to pay versus a year ago. 74% of respondents said that they would shop at small businesses with greater frequency if they were offered additional payment options.

“Mastercard’s study finds that people in the Asia-Pacific region haven’t just adopted new payment technologies — they’ve made deliberate shifts based partly on necessity, but also on considerations around personal safety, security and convenience, at a time when these concerns were paramount,” said Sandeep Malhotra, executive vice president, products & innovation, Asia-Pacific, Mastercard.

“Consumers in Asia-Pacific have already gained recognition globally for their openness to new technologies and innovation, and these findings confirm that this trend is only set to continue as more digital payment options rapidly become mainstream in this part of the world,” he added.

Looking forward, the use of a range of payment technologies is trending upwards as more people become comfortable with such technologies and understanding increases, while the use of cash declines.

About 69% of Asia-Pacific respondents in the survey said that they planned to use cash less frequently in the coming year. Also, digital or mobile wallets have gained significant popularity amongst consumers in Asia-Pacific, with 68% of respondents anticipating using this type of payment in the next year — higher than the global average of 62%.

“This behaviour shift is reinforced by people’s desire for choice — with 85% of consumers in APAC (Asia-Pacific) saying that they expect to make purchases when they want and how they want. Businesses that can provide multiple ways to shop and pay will be best positioned to meet the unique needs of this moment that are shaping the future of commerce for years to come,” Sandeep added.

Additionally, one in four respondents in Asia-Pacific (27%) reported that they were victims of fraud in the last year.

The survey showed that about 79% indicated they would be open to trying new payment technologies if they perceived the new methods to be safe, while 85% wanted to be sure the payment options the merchant offers were secure.

The top reasons given for not trying new payment methods included security concerns (47%) and data protection concerns (42%).

Source: The Edge Markets