Southeast Asia is emerging as a global focal point for cross-border real-time payments growth, with ISO 20022 and QR codes as key drivers, according to Envisioning a pan-regional real-time payment ecosystem in Southeast Asia. The new research, published by ACI Worldwide and financial technology market research and consulting firm Kapronasia, reveals real-time payments innovation as a key enabler for Southeast Asia as the region pursues economic recovery and further digital transformation as a result of COVID-19.
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Southeast Asia emerging as global point for #crossborder #realtime #payments growth, with #ISO20022 and #QRcodes as key drivers, per new research: Envisioning a pan-regional real-time payment ecosystem in Southeast Asia @ACI_Worldwide @kapronasia #fintech
Southeast Asia, as represented by the intergovernmental Association of Southeast Asian Nations (ASEAN), saw total merchandise trade grow from US$1.2 trillion in 2005 to US$2.8 trillion in 2018, with a quarter related to intra-ASEAN trade. Growth in eCommerce has been even more pronounced, rising from US$11 billion in 2017 to US$24 billion in 2018, while the overall internet economy is projected to triple in size by 2025 and reach US$300 billion.
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Increasing regional and global trade, paired with the rapid-growth internet economy, has led stakeholders to focus on deeper integration of financial services and put in place the foundations for a pan-Southeast Asia real-time payments ecosystem. Standardized, instant and seamless payments could boost intra-regional economic activity at a lower cost — and encourage future growth across the region.
“Southeast Asian countries are making significant strides in payments modernization, with nearly every major country in the region having robust domestic real-time payments infrastructure in place,” said Leslie Choo, managing director – Asia, ACI Worldwide. “Despite the lack of uniform regulations and disparate economic priorities across the region, it’s clear that market forces — driven by the needs of businesses and consumers — will propel Southeast Asia towards the realization of a multi-country real-time network. It is a complex undertaking, but one that ACI is committed to supporting through market-proven solutions for banks and central infrastructures. The emerging ecosystem promises significant benefits and will greatly support growth and economic prosperity in the broader region.”
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