Asia seeks to adopt ecommerce and embedded finance to boost innovation
Shutterstock Southeast Asia is home to many of the world’s largest emerging economies, identifying a need to accommodate the region’s rapidly growing population. Many firms are also making the most of the region’s adoption of technology and open attitude to innovation, leading to its high rate of technological cut-through. In particular, smartphone usage in Southeast Asia is enormous when compared to western economies, with the number of users expected to rise to 326.3m throughout this year , meaning that in some countries such as Thailand, 98.8% of people use a smartphone . This forms the perfect landscape for embedded finance to thrive.
Euromonitor’s 2022 report on the growth of the digital economy predicts that ecommerce sales across the Asia Pacific region will double to USD 2 trillion by 2025. The report author also added, “There is a significant appetite and opportunity here for digital transformation and bringing together embedded finance and ecommerce makes a lot of sense”, confirming that combining fintech with ecommerce is a step in the right direction and that companies are ready to embrace the benefits. The need for embedded finance
Due to both a lack of awareness, and a lack of trust in banking services, 6 – 10 Southeast Asians are currently underbanked or even completely unbanked. In areas such as the US, Europe and Japan, a credit card is the simplest way to pay online, but in Southeast Asia where the market operates much differently, only 3 in 100 even have credit cards.
This presents an enormous gap in the market that banks are simply unable to fill, hence the rise of embedded finance. With embedded finance, companies can now send money back to family abroad, pay vendors overseas, and purchase insurance and other services needed to run a business all without using a card. Banking-as-a-service […]
Click here to view original web page at www.idgconnect.com
I am a robot. This article is curated from another source (e.g. videos, images, articles, etc.). For the complete article please use the link provided to visit the original source or author. Content from other websites behaves in the exact same way as if the visitor has visited the other website.
Warning: The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or position of MichelPaquin.com.