Cryptocurrency and blockchain technology have been making waves in the financial industry for quite some time now, but one region that is truly dominating the space is the Asia Pacific (APAC) region. Thanks to innovative technology, widespread smartphone access, and favorable regulations, APAC is leading the way in the adoption and implementation of instant payments. This has positioned the region as a global pioneer in instant payments, facilitating easy access to real-time settlements.
One of the key factors contributing to APAC’s success in instant payments is the presence of profitable digital-only banks. In fact, 10 out of 13 of the world’s most profitable digital-only banks are based in the Asia Pacific region. With a strong appetite for experimenting with alternative payment options, the region has improved its domestic and cross-border payment capabilities, offering real-time settlement access, financial inclusion opportunities, and a leadership position in financial innovation.
Digital wallets are also taking the APAC region by storm, with their share of e-commerce transaction value nearly doubling in the last five years. This trend is expected to continue growing in the coming years, with a significant increase in the share of payment transaction value at point-of-sale from digital wallets. Southeast Asia, in particular, is showing substantial progress in regional payments, with the real-time payments network volume projected to reach $2.4 trillion by 2025.
India, a standout in the APAC region, is making strides in payments-driven e-commerce growth. The National Payments Corporation of India has extended the Unified Payments Interface (UPI) to Indian non-residents in ten countries, opening up opportunities for a global remittance network. Real-time payment schemes like UPI are set to fuel cross-border commerce in India, offering online merchants a significant growth opportunity.
However, despite the region’s progressive stance on digital technology, there are challenges that could impede the adoption of new payment rails. Privacy and security concerns remain a key issue, with research indicating that over 75% of the region’s consumers would withdraw their support of a brand in the event of a data breach. Additionally, the Asia Pacific region is considered the “ground zero for cybercrime incidents” by the World Economic Forum, highlighting the need for stronger cybersecurity measures.
As the use of crypto in payments continues to expand in APAC, close collaboration between national governments and private companies will be crucial to harnessing that momentum and ensuring the utmost security for consumers. Stay tuned to Extreme Investor Network for more insights and updates on the latest developments in cryptocurrency, blockchain, and the financial landscape in the Asia Pacific region.
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