Global E-Commerce Payment Linkages Beyond ASEAN
Almost 300 million individuals in India and 95% of people in China have been using QR code payments. ASEAN as a whole aims to link its regional QR payment system to these two e-economic giants, connecting 3 of the world’s biggest economies. Some ASEAN countries are already at various stages of establishing bilateral QR payment links with other Asian countries. Indonesia is connecting QRIS with Japan, South Korea, China and India, while Singapore has linked its platforms with China and India as well.
While QR code payments are dominating Asia, digital wallets are more popular in the Western hemisphere, including Europe which is preparing to launch the European Digital Identity Wallet next year. Additionally, SWIFT, the Clearing House and EBA Clearing have joined forces to streamline payments between Europe and the US, potentially creating a bigger global digital divide. In this evolving landscape of digital finance trends, the US needs to further diversify its mobile payment capabilities.
As a result of the pandemic, mobile wallet adoption such as Apple Pay and Google Pay has risen to a historic high of 46% in 2020 from the previous year and will still be the most popular method in 2024. More than 20% of US customers are now interested in using QR codes as interactive tools in retail and social media, such as for marketing, identification, event invitations, or touchless menus, more commonly than as a scan-to-pay tool. These developments resonate with the evolving trends worldwide and highlight massive opportunities in the global digital finance area.