Worldpay GPR 2025 shows digital wallets continue to dominate in Asia

For example, in Singapore, digital wallets now lead eCommerce transactions and are the second most-used payment method for point-of-sale (POS) transactions, accounting for 39% of eCommerce transactions, and 29% of transaction value in 2024. Meanwhile, credit cards once the leading payment method, saw their share of eCommerce transactions fall from 70% in 2014 to 37% in 2024.

The report also underscores the importance of real-time payments in the region. Instant payment systems, such as India’s Unified Payments Interface (UPI), Malaysia’s DuitNow, and Singapore’s PayNow, are gaining traction among consumers and businesses alike. These systems offer immediate settlement of transactions, reducing the need for intermediaries and enhancing the efficiency of payment processes. The proliferation of real-time payment systems is expected to continue, driven by supportive regulatory frameworks and the growing demand for seamless and instantaneous transactions.

Another significant finding is the rise of mobile commerce in Asia. The report notes that mobile devices account for a substantial share of e-commerce transactions in the region, with consumers increasingly using their smartphones to browse, shop, and make payments. This shift towards mobile commerce necessitates that merchants optimize their websites and payment processes for mobile devices to cater to the evolving preferences of consumers.

In terms of cross-border payments, the report points to the increasing efforts by Asian countries to enhance interoperability between their domestic payment systems. Initiatives such as Project Nexus, which aims to link the fast payment systems of India, Singapore, Malaysia, Thailand, and the Philippines, are paving the way for more efficient and cost-effective cross-border transactions. These efforts are expected to reduce reliance on traditional payment networks and facilitate smoother international trade and remittance flows.

The implications of these findings for the payments industry are profound. The widespread adoption of digital wallets and real-time payment systems is reshaping the competitive landscape, compelling traditional financial institutions to innovate and adapt to the changing demands of consumers. The rise of mobile commerce and the influence of fintech companies further intensify the need for established players to enhance their digital capabilities and collaborate with emerging technologies.

For merchants, the emphasis on mobile and digital payments necessitates the adoption of integrated payment solutions that offer a seamless and secure checkout experience across various platforms. The ability to accept a wide range of payment methods, including digital wallets and real-time payment systems, will be crucial in attracting and retaining customers in an increasingly digital marketplace.

Regulatory bodies also play a pivotal role in shaping the future of payments in Asia. The development and implementation of policies that promote interoperability, ensure security, and foster innovation will be essential in creating a conducive environment for the growth of digital payments. Collaboration between regulators and industry stakeholders will be key to addressing challenges and harnessing the opportunities presented by the evolving payments landscape.

Overall, the rise of digital wallets, real-time payment systems, mobile commerce, and fintech innovation are collectively driving the region towards a more digital and inclusive payments ecosystem. For businesses and financial institutions, embracing these changes and staying attuned to consumer preferences will be vital in navigating the future of payments in Asia.