India has experienced the fastest growth in digital payments within the Asia-Pacific region, driven primarily by mobile wallets and UPI-based transactions. A report from GlobalData attributes this significant rise to the widespread adoption of mobile wallets, which facilitate real-time payments through QR code scanning.

The popularity of online payment methods in e-commerce has surged across India, China, and the broader Asia-Pacific region, displacing traditional payment methods like cash and bank transfers. China led the way in alternative payments in 2023, with India following closely.

GlobalData’s report highlights that India’s share of alternative payments in the APAC region jumped from 20.4% in 2018 to 58.1% in 2023, making it the second-largest market for such payments. This growth is largely driven by UPI, which has made mobile payments more accessible and convenient.

Alternative payments, including mobile and digital wallets, are now the preferred tools for e-commerce transactions in the APAC region. While China and India have high adoption rates, other cash-intensive countries like the Philippines, Malaysia, and Indonesia are also seeing a shift towards digital payments. However, China and India remain leaders in this trend.

Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, noted that while most Asian markets have traditionally relied on cash, the adoption of alternative payment methods for both online and in-store transactions is increasing rapidly, outpacing Western markets. This shift is fueled by rising smartphone and internet accessibility, the convenience of electronic payments, and the proliferation of mobile and QR code-based solutions.

In China, alternative payment solutions accounted for over 65% of e-commerce transaction value in 2023, up from 53.4% in 2018. China boasts one of the most mature mobile wallet markets globally, with Alipay and WeChat Pay being widely used for everyday transactions and online payments.

Other markets in Asia, including Indonesia, Hong Kong, Singapore, and the Philippines, are also seeing high adoption rates for alternative payment methods. Gupta attributes this trend to increasing internet and smartphone penetration and growing merchant acceptance of digital payments.

The convenience, speed, and security of alternative payment methods, combined with expected growth in the overall e-commerce market in the region, are anticipated to further boost the popularity of these payment tools and disrupt the consumer space in APAC.

The GlobalData survey was conducted in Q2 2023, involving around 50,000 respondents aged 18 and above across 40 countries.