DESPITE initial concerns of a post-Covid downturn, the digital payment market continues its growth trajectory in Asia, with transaction value expected to hit US$2 trillion in 2030 as more fintechs and digital banks emerge, according to a new Google-led study. The growth continues off the back of a broader digital economy boom in the region, with eight in 10 consumers in South-east Asia now digital, according to research conducted by Bain & Company and Facebook.

For online merchants, the region’s rapidly digitising economy represents a huge opportunity for growth. But part and parcel of this broader digital economy growth is the proliferation of alternative digital payment options such as “buy now, pay later” (BNPL), bank transfers, e-wallets and even cryptocurrency. It’s an opportunity – and a challenge – that’s becoming increasingly difficult for merchants, particularly small to medium-sized businesses, to navigate.

The region’s opportunity lies, in part, in the potential access to the vast numbers of consumers who are not tied to traditional payment options. It’s what some are referring to as a financial revolution – the democratisation effect of digital payment options levelling the playing field for consumers who may struggle to access traditional financial institutions.