Consumers in Asia Pacific (APAC) are increasingly turning to digital payments such as mobile wallets – and in some markets, including China, India, Indonesia and Malaysia, digital payments have now overtaken credit cards as the preferred payment method, the new Experian Global Insights Report found.
As more people go online for their consumption needs, businesses must keep pace with digital experiences to strengthen trust and loyalty. However, there remains a gap between consumer expectations and the digital experience businesses can offer, with only 1 in 5 Singaporean consumers saying businesses have completely met their expectations for digital experiences, the lowest across APAC.
Experian surveyed 6,000 consumers and 2,000 businesses across 20 countries, including Australia, Brazil, Chile, China, Columbia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, Netherlands, Norway, Peru, Singapore, South Africa, Spain, United Kingdom and United States, on insights related to consumer and business economic outlooks, financial well-being, online behaviour and more. This report is the latest study in a series exploring the significant shifts in consumer digital preferences and business strategy over the past seven years.
According to the study, ‘Buy Now Pay Later’ (BNPL) services are gaining popularity in APAC, and are poised to replace regular use of credit cards in some markets, including Australia (28%), China (28%), and Indonesia (32%) where usage has risen in the last six months.
Financial data protection is top priority
APAC consumers are willing to share personal data with businesses in exchange for better services. In Indonesia, 74% of consumers are ‘very’ and ‘somewhat’ willing to share their personal data, the highest in the region. Having said that, consumers across the region remain cautious about sharing payment or transaction data, which in turn, limits the ability to fully optimise the data and address consumers’ evolving demands.
This question mark around trust means APAC consumers agree financial data protection is their top priority. Additionally, many remain wary of their digital experiences, especially in Malaysia, where 84% are ‘very’ and ‘somewhat’ concerned with online transactions and activities. Importantly, the top concerns for consumers vary from market to market, as follows:
The Experian Global Insights Report can be downloaded here.