According to the current Mastercard New Payments Index, the Covid-19 epidemic has increased excitement for various payment innovations in the Asia Pacific area. According to the GCG Asia Malaysia office research team, based on the latest survey, 94 percent of APAC customers stated use at least one different payment mechanism in the coming year, including biometrics, e-wallets, installment schedules, QR codes, crypto-currencies, among several others.
The Mastercard New Payments Index was administered through 18 markets around the world, covering Australia, India, and Thailand, according to the GCG Asia Malaysia office scholar squad. Compared to a year earlier, 84 percent of customers in the Asia Pacific now have more payment options. They also have an explanation. For example, 74 percent of respondents stated they would shop at small businesses more often if they had more payment choices, which is good news for startups.
It is interesting to see what 2021 has in mind for us these days. So we will take a quick look at all of the digital payment patterns that will be large in 2021 in this article.
About Digital Payment
Customers in the Asia Pacific already have achieved global attention for their tolerance to emerging technology and creativity. However, according to GCG Asia’s latest report, these results confirm that this pattern is only going to continue as more online payment solutions increasingly become commonplace in this part of the globe.
Following the opinions of GCG Asia’s researcher, According to the index, the use of a variety of payment technologies is growing, with satisfaction with payment technology rising although cash use is gradually declining. In reality, according to the survey, 69 percent of Asian respondents expect to use cashless frequently in the coming year.
“People’s appetite for preference is reinforcing this behavior change, with 85 percent of Asian customers stating that they plan to make transactions when and how they choose. Therefore, businesses that can provide many ways to buy and pay would be well suited to fulfill the unique needs of the time, according to GCG Asia’s head analyst.
APAC payment patterns
The research also found some fascinating payment patterns around the country, according to GCG Asia Malaysia office analysts. For example, in the previous year, 84 percent of customers in APAC have increased their access to new modes of payment.
According to the index, if customer appetite grows, companies of all sizes would be expected to have several options to buy and pay. According to the GCG Asia Malaysia office team, 80 percent now choose to buy at shops with both an in-person and online platform, and 69 percent are more willing to shop at merchants that deliver the most up-to-date payment methods.
Furthermore, 60 percent of customers surveyed said they would stop merchants that do not recognize some electronic payment. In addition, a GCG Asia Malaysia office team said the research reveals that QR Codes are particularly common in Asia. For example, 63 percent of those who used QR codes for payment claimed they used them more often in the last year than in the previous year. Thailand and India each have 64 percent, which is more than the global average of 56 percent.
The emergence of cryptocurrency
According to the GCG Asia Malaysia office team, Mastercard’s index shows that customers are becoming more interested in investing in crypto assets for daily transactions. In Asia, 45% of those polled said they would start utilizing cryptocurrencies in the coming year, a significant increase from the 12% who said they had used it in the previous year and more robust than the world rate of 40%.
According to recent research, the GCG Asia Malaysia office expert group says, when it comes to Digital Payment Trends, centennials and millennials (41%) are more comfortable with cryptocurrencies than Gen X and boomers (26%). In addition, 71 percent of millennials say they are more open to using it than they were a year ago. In terms of geography, consumers in Thailand (46 percent) and India (44 percent) are more familiar with cryptocurrencies than consumers in Australia (17 percent ).
GCG Asia Malaysia office team’s latest report says consumers are becoming increasingly familiar with biometrics, according to the index. Around two-thirds of customers (64 percent) are enthusiastic about biometric identification approaches such as gait or walk tests and fingerprint authorization. In addition, according to the survey, 62 percent of people believe that using biometrics to validate a transaction is better than inserting a pin.
Authentication using biometrics
In the year 2021, biometric authentication will become increasingly common. The GCG Asia Malaysia office analysts shared their thoughts on Digital Payment Trends, stating that biometric identification is a means of verifying a person’s biological and structural characteristics. Fingerprint sensors, face detection, iris scanning, pulse tracking, and vein visualization are examples of these identification techniques.
With increased identity theft and fraud, biometric authentication may become a safe and stable solution for all digital payments in 2021—even the statistics point in the same direction. According to Biometric Update.com, 2.5 million payment cards (approximately) will release in 2021.
According to GCG Asia Malaysia office researchers, biometric authentication is a unique and valuable payment system since it combines and offers precision, performance, and protection in a single box. Furthermore, since it requires an individual’s specific features, biometric authentication is a highly safe process. This consideration also contributes to the development of consumer satisfaction and confidence.
From cards to coding
According to GCG Asia’s latest report on Digital Payment Trends, random combinations with similar card numbers marked bank accounts through random variations of identical digits on cards. However, EMV (Europay, Mastercard, Visa) technology has increasingly gained traction, providing consumers with a more automated and safer payment system.
“EMV tech is popular for utilizing transaction codes that change any time a transaction occurs. The usage of temporary codes improves bank account protection by leaps and bounds. This example demonstrates how codes will influence how we handle savings account processes,” the GCG Asia Malaysia offices researchers explains. Furthermore, cutting-edge financial services with more secure and streamlined means of money transfer and storage are destined to overshadow the future of plastic cards.
Payments for smart speakers
According to GCG Asia’s recent research, users of smart speakers may send voice recognition to the speaker and obtain a voice response in response. For example, the customer will use voice commands to get weather forecasts, traffic updates, orders from Zomato, and book an Uber taxi, among other items.
A slew of industry behemoths is manufacturing intelligent speakers. “Amazon was the first to release a smart speaker in 2014,” says the company. In 2016, and 2017, respectively, Google Home and Apple joined Amazon,” according to the GCG Asia Malaysia office research unit.
Since they were limited to just phone applications, the speakers originating from digital assistants were rudimentary in design. Smart speakers, on the other hand, have become more popular as home automation has grown.
Mobile wallets’ dominance
In 2019, about 2.1 billion consumers will use mobile wallets, according to a survey by GCG Asia. And this figure is only expected to rise in 2020. A mobile wallet solution is simply a portable program that attempts to imitate the functionality of a digital wallet. For example, you can transfer money to other clients, accept cash from other clients, and save money in your digital payment with the aid of a mobile wallet. Not just that, but a mobile wallet may be used to pay energy costs, purchase fares, receive incentives, and even more.
“According to Appventurez, the number of mobile wallet transactions will increase to 274.4 billion” (approx.). As a result, several major corporations, including Samsung, Google, and Apple, have begun to provide mobile wallets to facilitate this transaction. Those pockets, on the other hand, are all brand and business exclusive. Hence, more businesses will want to build their brand-specific wallet in the coming years,” says the GCG Asia Malaysia office team.
With the aid of a mobile wallet, businesses can quickly determine their customers’ use. In a mobile wallet, there are many parties involved. The research team from GCG Asia Malaysia office utilizes mobile wallet domination as an illustration where a single organization, such as Google, creates a mobile wallet. After that, a particular corporation makes gift passes and payment cards.
A large number of retailers often use the Google wallet. A mobile wallet, in general terms, is made up of several components that function together to provide simple, fast, and digital payment services.
The GCG Asia Malaysia office analysts summarized their report on Digital Payment Trends 2021 by claiming that payment processes would shift from actual cash to online payment options. Most new patterns will emerge and vanish before the transformation is complete. These developments would have a significant impact on how we compensate in the future. “Some of the previously listed patterns will play a significant role in that phase.” However, only time can tell how it turns out,” says the GCG Asia Malaysia office analysts.