Will modern FinTech change the way payments are made in Southeast Asians?
As investment in Financial Technology soars, FinTech is proliferating the world over with better ways to pay for things and so is the case in Southeast Asia, as well. Let’s go over a quick review of current regional state of affairs to assess transition readiness for a fully integrated online payment system; to a Cashless Society.
Southeast Asia currently has 133% of mobile phones online, which means that some owners use more than one phone or SIM card. According to data from the Asian Development Bank in 2017, however, only 27% of mobile phone owners use Online Banking. Such numbers present a challenge to overcome for the cashless transition.
It is estimated that the net worth of online transactions worldwide will top $95 billion by 2018 which will significantly reduce monetary management costs by 90%. FinTech investment reached $46.7 billion in 2015 due to the expansion of e-wallets and other e-platforms, however, it declined in 2016, to $24,700 million. In Southeast Asia, the FinTech investment champion is Singapore, with 490 startups and an overall investment of $141 million in the past calendar year, with other nations in the region such as the Philippines, Indonesia, Malaysia, Vietnam, Thailand and Cambodia are breathing down the neck in terms of development.
The challenge to regional cashfree remains public awareness, mainly of the benefits of online transactions, and incentives to switch from cash to online. Issues related to data management, cybersecurity, privacy and risk management as well as the basic operational procedures must also be clarified to accelerate the gradual transition of spending cultures along with, of course, comprehensive statecraft that guide online movement, effectively.
For Thailand itself, there has been a positive trend with respect to cashless development. According to statistics, Internet Banking transactions, as well as internet users in general, have continued to increase, which sends a positive message for future FinTech development and the growing number of online users.
Source: Bank of Thailand, ASEAN Today
Compiled by BLOG.SCGLogistics
References and photos sea-globe.com, aseantoday.com, pixabay.com