E-payment firms have to collaborate to succeed

ASIA-Pacific's e-commerce boom has given rise to a vibrant digital payments landscape, yet the race for attention and customer retention is bleeding companies dry. To sustainably realise our cashless future, payment providers must learn to embrace their "frenemies".

The region is on a giddying growth trajectory. By 2025, digital payments in South-east Asia are projected to cross US$1 trillion in transactional value. High smartphone adoption and accessible digital wallets empower under-banked populations to shop online. Meanwhile, convenient use, reward systems and potential savings encourage cash-free payments offline.

Competition for digital payments flourishes in these circumstances. Malaysia's central bank lists 47 e-money issuers in the nation, accounting for RM13.8 billion (S$4.58 billion) worth of transactions in the Jan-Oct 2019 period. International giants such as Alipay and WeChat Pay import their expertise from a mature Chinese ecosystem, while local players rise to the challenge with branding, marketing and investor-lined pockets.