Payment transactions in SEA will reach US$54 trillion in 2027
By Digital News Asia August 16, 2023
- Vietnam & Indonesia will account for largest share in transaction figures
- Analysts considered payments by bank cards, bank transfers, electronic money and cash
Analysts of Robocash Group have revealed that the total volume of payments in Southeast Asia will reach US$53.9 trillion (RM250 trillion) by 2027.
In a statement, the firm which provides fintech services in Asia and Europe said Vietnam and Indonesia will account for the largest shares in this figure, whilst in Singapore, the payment volumes will rise by 68% and reach US$1.7 trillion (RM7.87 trillion) by 2027.
It said its analysts considered payments by bank cards, bank transfers, electronic money and cash, adding that the total amount of payments made in the Philippines, Singapore, Malaysia, Indonesia, Vietnam and Thailand in 2022 by physical and legal entities amounted to US$29 trillion, which is two times more than in the previous decade.
[RM1 = US$0.216]
This value is higher than the GDP of the US or China, and is also comparable to 29% of the total global GDP in 2022, it added.
The analysts of the group further explain that one of the reasons for rapid growth in Southeast Asia’s payment transactions recently is the boost of digital technologies caused by the Covid-19 pandemic.
They said from 2020 to 2022, the amount of payments in SEA increased by 45%. Secondly, there is strong support from the state whereby each country in the region has its own national digitisation programmes, which includes the digitisation of payments.
Thirdly, as of 2022, the total volume of private domestic and foreign investments in the fintech payment infrastructure of SEA amounted to about US$60 billion, of which US$26.5 billion was invested between 2021 and 2022, they added.
The biggest share in the volume of payments in 2022 was made by Vietnam and Indonesia - 29% and 39%, respectively and this can be explained by the amount of money in circulation and its value against the US dollar, they said.
Based on historical changes and considering the development of the natural trend, analysts of the group made forecast that the total volume of payments across Southeast Asia will grow by 86% reaching US$54 trillion by 2027 with Vietnam expected to grow the most - by 152% to US$21.5 trillion, surpassing Indonesia with its US$18.3 trillion. Meanwhile, Singapore will be the second fastest growing country in these terms with its 68% growth.
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