Although cash payments are still the go-to mode of payment, the APAC market insights show that the near future promises the dominance of digital payment.
FREMONT, CA: Kaspersky's latest analysis says that cash payments might be ruling Asia Pacific (APAC) now, but not for long. The research was based on the information collected from the residents to understand their notion on digital payments, which is the deciding parameter in the adoption of technology.
Insights from the research reflected that around 90 percent of the Asian respondents used digital payments for a minimum of one time in the last 12 months, reflecting the rise in fintech in the region. Undoubtedly, China is the protagonist in APAC for digital payment leading by example for other nearby territories when its local players Alipay and WeChat Pay was adopted by the masses before the pandemic.
Chris Connell, Managing Director for APAC at Kaspersky said that cash is still ruling in APAC with 70 percent of the respondents still relying on physical currency for their day-to-day transactions. But in the next five years digital payment is projected to take over as the pandemic has compelled people to adopt digital payments responding to safety measures. It is also safer and more flexible than traditional payments.
According to respondents, these apps helped them in making payments while maintaining social distance and safety measures. The use of digital payment methods was the only means to carry out the daily transactions during the lockdown. 29 percent of users find digital gateways more secure and reliable, they also like the rewards and offers in the apps.
Still, around 48 percent of first-time digital payment users were scared to use these apps as they think that they will end up losing their money. While 48 percent of users do not feel secure enough to store their data and information in these apps. Some of them do not find their personal device to be secure enough while the rest do find it friendly to go through technological change.