All-in-One Cards are reshaping APAC’s digital finance landscape

Payments provider BPC, in collaboration with Visa, has rolled out a new service in Vietnam that allows cardholders to switch between credit, debit, installments, and rewards all on a single card. This launch is part of a broader strategy by both companies to bring Visa’s Flexible Credential platform to more markets across the Asia-Pacific region.

This marks a major step forward for multi-functional payment cards in APAC, a trend that began with the successful partnership between Japan’s Sumitomo Mitsui Banking Corporation (SMBC) and Visa on their Olive payment service. Since its launch in March 2023, SMBC’s Olive has been a remarkable success, attracting over five million users in just two years.

The continued growth of these services is fueled by several factors. A key driver is the convenience and simplicity they offer, which especially appeals to tech-savvy consumers who are used to managing everything on their smartphones. These platforms also often integrate other financial services and loyalty programs, allowing companies to create comprehensive “everything apps.” This approach builds strong user loyalty by making the app a central hub for a wide range of financial activities. For example, Olive seamlessly connects customer accounts with online securities (via a strategic partnership with SBI Securities), insurance, and the V-point loyalty program.

Beyond consumer appeal, the rise of these products is also supported by broader market trends. The Asia-Pacific region is a global leader in cashless transactions, accounting for over half of the world’s total in recent years. This shift is particularly evident in Southeast Asian countries, where the widespread use of mobile wallets is driven by high smartphone adoption and growing internet access. Governments across the region are also actively encouraging cashless payments through various national initiatives.

However, the expansion of these multi-functional cards faces significant challenges, especially in certain markets. In countries with mature cashless ecosystems like China, India, and South Korea, the market is already highly competitive. Local mobile wallets and national payment systems have created powerful network effects and are deeply ingrained in daily habits, meaning new players must offer a compelling reason for consumers to switch. Additionally, in emerging markets like Vietnam and the Philippines, many consumers find it difficult to get a traditional credit card and instead prefer digital wallets, which do not require a formal bank account or credit history. This contrast highlights why the Olive service was a perfect fit for Japan, a market with a population comfortable with traditional banking but slow to embrace cashless solutions.

Ultimately, while the flexible, all-in-one payment card is an innovative and consumer-friendly idea, its future success in the Asia-Pacific will depend on its ability to navigate these diverse market challenges. Olive’s success in Japan shows the potential for such services in a specific, high-trust environment, but widespread adoption will require providers to adapt to local regulations, compete with established local payment ecosystems, and address the unique financial needs of both banked and underbanked populations.