2024: Transformative Trends Reshaping Payments Across Asia Pacific
Over the past decade, the payments landscape in Asia Pacific (APAC) has witnessed significant transformation with the arrival of new technologies that have reshaped traditional, cash-centric systems. The evolving landscape in APAC for 2024 is driven by consumer demand for faster, seamless, and secure transactions. Visa highlights two key trends shaping this landscape:
- Embedded Finance: Digital payments are evolving to offer solutions seamlessly integrated into non-financial platforms, enhancing customer experiences. Examples include insurance offerings during eCommerce checkout and Buy-Now-Pay-Later services within apps. Embedded finance is projected to unlock significant market opportunities, particularly benefiting small and medium-sized businesses (SMBs).
- Consumerization of B2B Payments: With Gen Zs and Millennials expected to dominate the workforce, B2B payments are becoming more user-friendly and intuitive. Factors driving this shift include interoperability, enabling different payment systems to work together seamlessly, and the demand for all-in-one, multi-capability B2B payment solutions that streamline tasks like payment, lending, and invoice management.
There is also the importance of delivering timely and convenient payment solutions, adapting to changing consumer preferences and technological advancements in the APAC region.
Malaysia’s digital payments landscape
The evolving digital payments landscape in Malaysia and the corresponding increase in cyber threats, particularly data breaches and fraud. Cybercriminals are leveraging generative AI to create sophisticated scams, posing challenges for consumers in distinguishing between legitimate and fraudulent communications. To address these risks, new technologies like machine learning and AI-powered solutions, such as Visa’s Advanced Authorization (VAA), are emerging to enhance consumer protection.
Moreover, the article highlights the changing landscape for small and medium-sized businesses (SMBs) in Malaysia, who are facing rising costs amidst digitalization. While SMBs are optimistic about growth, they are seeking smarter, cost-efficient adoption of payment solutions to reach more customers. Additionally, they are prioritizing practical solutions and flexible access to capital.
This article is from VISA
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