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Mobile Payments in Asia/Pacific: Where Do the Opportunities Lie?

Mobile Payments in Asia/Pacific: Where Do the Opportunities Lie?

This IDC study looks at the emerging trend of mobile payments (mpayments) within the Asia/Pacific context. While Asia has been the home of some of the most innovative new mpayments globally, the mixture of economies ranging from highly developed high-technology hubs to large emerging economies means that a one-size-fits-all solution to mpayments for this region will be highly unlikely to succeed. This study deep dives into the individual markets to see what role mpayments may play and in what form they may emerge, as well as what those operating in this space should be focused on to best seize these opportunities.

Michael Yeo, senior market analyst from IDC Financial Insights states, "mPayments have a lot to do with going cashless. However, it must be noted that in the evolution to a cashless society, the Asian experience does not necessarily have to mirror the Western 'efficiency' model and, instead, may act as a driver for focus on initiatives such as financial inclusion and boosting gross domestic product (GDP). With different markets at varying stages of development, we believe that mpayments represent only one of the possible options in the future and that this does not necessarily lead to mpayments being the dominant form of payment in a given market."

Shiv Putcha, associate research director in IDC goes on to state, "A society that already has high card usage and extensive point-of-sale (POS) infrastructure may seem to be well suited to mpayments, but in reality, extensive credit and debit card usage will make it difficult to displace these stalwarts and may retard the eventual growth of mpayments. On the flip side, a market with limited financial infrastructure at the POS has little incentive to make the heavy investments needed and may possibly then start to skew toward mpayments as the preferred transactional method."

Please Note: Extended description available upon request.


IDC Opinion
In this study
Situation Overview
Definitions
Proximity
Remote
mPayments Growing Fast Globally
Remote Payments Will Be the Key Growth Engine
Proximity Payments Are Small but Quickly Growing in Importance
The QR Code May Have an Unexpected Role to Play in Asia/Pacific
Predicting mPayment Uptake across Asia/Pacific
Low Credit Card Usage Paves the Way for Debit Cards to Gain Ground
Lack of Cards in Asia/Pacific Brings Bank Account–Linked Wallets to Fill the Gap
mPayment Growth Drivers
NFC Infrastructure and Uptake Are a Major Bottleneck
QR Code as the Surprise Winner
The Importance of mCommerce
Will mCommerce Leapfrog Past eCommerce?
Smartphones Are Causing Consumer Behavioral Shifts That Are Driving mCommerce
Measuring Readiness of Asia/Pacific for mPayments
A Different Payment Evolutionary Path in Asia/Pacific?
Future Outlook
Jumps across Clusters Will Be Challenging
Two Possible Scenarios for mPayment Development in Asia/Pacific
Scenario 1
Scenario 2
Essential Guidance
Learn More
Related Research
Synopsis
Table: mPayment Usage in Asia/Pacific
Table: IDC Classification of Markets
Figure: mPayment Global Market Transaction Value, 2013-2017E
Figure: mPayment Global Market Breakdown by Method, 2013-2017E
Figure: Asia/Pacific Credit Card Penetration versus Debit Card Penetration
Figure: Asia/Pacific Credit and Debit Card Spend versus Smartphone Penetration
Figure: Asia/Pacific NFC Penetration for Smart Devices in 2015
Figure: NFC as Percentage of Smartphones versus NFC as Percentage of Total Devices
Figure: mCommerce Market: Ready to Boom in Asia/Pacific
Figure: Asia/Pacific mCommerce Spend, 2014-2018E
Figure: Five Main Criteria for Assessing mPayment Market Readiness
Figure: Asia/Pacific mPayment Readiness Ranking
Figure: The Asia/Pacific Payments Landscape for 2015–2017

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