Adoption of fintech applications, including digital wallets, is booming in the Asia-Pacific region, according to new research from Rapyd, a global Fintech as a Service company.
The survey found that digital wallets take off particularly for personal transactions, such as personal reimbursements from family or friends, discounts and the sale of personal goods or services.
Of the seven markets studied, India has proven to be the largest adopter of digital wallet applications for business-to-business (B2B) and P2P transactions, with the highest usage rates.
Rapyd surveyed 3,500 online consumers in the Asia-Pacific region (India, Indonesia, Japan, Malaysia, Singapore, Taiwan and Thailand) in March and April 2020, found that consumers in the region are rapidly embracing fintech mobile apps, with 77.6% of Indians, 77% of Malaysians, 70% of Indonesians and 66% of Thais have used a digital wallet app in the past month.
We interviewed 3,500 customers in 7 Asian countries and asked them how they preferred to be paid. And here's what we found. Full report: https://t.co/FeJoQKfRcZ#disbursements #payouts pic.twitter.com/7yO7QrAHKBMay 5, 2020
Survey respondents were identified as household decision makers aged 18 to 64 across a full range of income levels and asked questions about banking preferences, payment behaviors and concerns.
The survey, which contrasted between the attitudes of different countries, shows where they are in their digital payment journeys. The report also found that there is no single approach to global payments. Each country is unique in its preferences and digital leaders must be ready to localize their payment experiences to stimulate loyalty and commitment of beneficiaries.
The survey did, however, reveal interesting information about India: Indian users who are self-employed and work on a contract basis received payments more through wallets than cash or bank transfers. About 33.5% of Indians chose this option as their preferred option.
India is the only country to have chosen electronic wallets as an option to transfer funds. The possible reason is that the cost of remittances remains high in India.
Indians appreciate data security
More interestingly, India cared more about the security of its private data and information than any other country in Southeast Asia.
The survey found that 82% of Indians, 75% of Malaysians and Indonesians and 68% of Singaporeans said that the protection of personal information was the most important attribute for receiving payments.
The Reserve Bank of India, India's central bank, would be glad to know because it has mandated a mechanism for all companies to store data in India, much to the chagrin of international tech giants and credit card networks .
Their emphasis on safety and security reflects the mood of the Indians.
Overall, the study reflects remarkable buoyancy in the financial applications sector, which has experienced staggering growth in global adoption, from 16% in 2015 to 64% in 2019.