Consumers in the Asia-Pacific (APAC) region are leading the charge in digital payment adoption. It is the only global region where digital wallets accounted for the majority of both in-store and e-commerce transactions in 2024. More striking still, emerging markets like Thailand are driving this innovation, developing breakthrough solutions that achieve remarkable scale while addressing financial inclusion. This entirely challenges the notion that payment innovation typically flows from advanced economies to emerging markets.
The rise of digital payments where cash is king
Cash usage across APAC has dropped sharply over the past decade as consumers, merchants and policymakers have sought to embrace digital payments. Leading this transformation are China (5% cash usage) and South Korea (7%), while emerging markets like the Philippines (41%) and Thailand (31%) remain more cash dependent. This matters because cash reliance disproportionately affects lower-income and unbanked populations – in Thailand, 63% of adults fall into these categories.
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Yet Thailand stands at a crucial turning point. While there continues to be a high reliance on cash, Thai consumers are rapidly adopting digital alternatives, with account-to-account (A2A) transactions now comprising 44% of spending, driven largely by the success of PromptPay. Although cash remains a key entry point into the financial ecosystem in Thailand, digital payments are playing an increasingly important role in driving access and inclusion.
Emerging markets are driving innovation in financial inclusion
Initiatives backed by public authorities across emerging markets are reshaping the global payments playbook. There is often the assumption that innovation in financial inclusion solely originates from advanced economies. In reality, emerging markets are often at the forefront of innovative payment solutions that meet local needs and, in turn, influence the global landscape.
In Thailand, policymakers are committed to accelerating digital payment adoption, with an ambitious target to halve cash circulation by next year through wallet-based payments and interoperable QR codes. Efforts are already underway to achieve this. In 2024, digital wallets started being used as a distribution mechanism for social benefits, targeting traditionally cash-reliant communities. Through state-owned Krungthai Bank’s Paotang super app, eligible citizens receive aid via the “g-wallet” feature. This move has directly introduced millions of users to digital payment infrastructure while delivering essential financial support.
Similar public-led innovations are transforming payments across other emerging markets. In India, the Unified Payments Interface (UPI) has transformed the country’s payment landscape by facilitating instant transactions. As of 2024, UPI dominated with 58% of point-of-sale and 64% of e-commerce transaction value, highlighting its pivotal role in expanding digital payment access for a wide range of Indian consumers. Similarly, Brazil’s Pix system has rapidly gained traction, with three in four Brazilians now using it to make payments.
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By GlobalDataThese examples demonstrate that public-led initiatives combined with the absence of entrenched credit card systems have allowed emerging markets to jump straight to innovative payment solutions and rewrite the global standard.
An opportunity for payment providers, merchants and end-consumers
The shift toward digital payments is creating new demands and opportunities for payment providers and merchants. Consumers now expect instant, seamless transactions across all channels. Now more than ever, those at the heart of global payments must have the right regional presence and market understanding to deliver optimal payment experiences.
In Thailand, merchants must be able to accommodate multiple payment methods, including local solutions like LINE Pay, TrueMoney, PromptPay and online banking. Success in this environment requires support from payment providers that can seamlessly handle these diverse payment types while maintaining high authorisation rates, strong fraud protection and domestic settlement capabilities in Thai Baht.
Ultimately, it is not about reinventing the wheel in emerging markets; it is about payment providers paying attention to local ecosystem, which in turn helps to broaden financial access and subsequently drive business growth in the region.
Payment systems will drive forward financial inclusion
The very fact that digital payments adoption can boost GDP-growth by 6-8% underscores the transformative role payments will play in economic development across emerging markets. Ultimately, when payment systems prioritise accessibility and local preferences, they become catalysts for broader economic participation, enabling entire communities to engage with the formal financial system.
Gabriel de Montessus, EVP and Group President, Global Enterprise Division, Worldpay
