Why mobile payments in Southeast Asia are about to take off

Tech in Asia reports that online and mobile-based purchases in Southeast Asia are expected to exceed $22 billion in 2015

More and more players are entering the mobile payments space in Southeast Asia yet most consumers aren’t biting. That’s about to change, says global market research firm Forrester.
 

But first: know that there’s a huge opportunity

In a report, Forrester said online and mobile-based purchases in Southeast Asia are expected to exceed $22 billion in 2015. That number will increase, albeit gradually, over the next few years, due to several factors.
 

First, more consumers are buying digital content via their smartphones. Forrester estimates that the base of smartphones – the first and only way for many people to access the internet – will reach 175 million in Southeast Asia this year and grow to 230 million by 2017. What’s the key driver of mobile payments made through this device? Gaming. The mobile gaming industry is seen to rake in over $7 billion in revenue by 2019.
 

Second, mcommerce will support growth in payments over time. Firms are boosting their investments in online and mobile marketplaces such as Carousell in Singapore and Tarad in Thailand, says Forrester. On Tarad, specifically, 35% of purchases are made via mobile.
 

Third, governments have rolled out policies to encourage mobile payments. For instance, the Malaysian government has committed over $240 million to the Domestic Investment Strategic Fund for the development of new financial products, while the Monetary Authority of Singapore allotted some $160 million to grow the country’s fintech industry. We should expect alternative payment methods to spring up over the coming years.

This is an excerpt from Tech in Asia. You can read the full article here.