SEA payment transactions to climb $54t by 2027 – report

Vietnam and Indonesia will have the biggest share in payment transaction volume.

Payment transactions in the Southeast Asia (SEA) region are seen to rise 86% to $53.9t in 2027, according to analysts from Robocash.

Markets seen to contribute the most would be Vietnam and Indonesia. Due to its 2022 performance, both countries are seen to continue its pace in four years.

Vietnam and Indonesia’s 2022 share in volume of payments were 29% and 39%, respectively.

For 2027, Vietnam commits to grow 152% to $21.5t, whilst Indonesia with $18.3t.

For Singapore, the report noted that its payment volumes will climb 68% to $1.7t in 2027.

Last year, transactions amounted to $29t, all from payments made in the Philippines, Singapore, Malaysia, Indonesia, Vietnam and Thailand. This was double than the previous decade’s figure.

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“One of the reasons for rapid growth in SEA’s payment transactions recently is the boost of digital technologies caused by the COVID-19 pandemic. From 2020 to 2022, the amount of payments in SEA increased by 45%,” Robocash analysts stated.

Other factors contributing to the rise in payment transactions were the government’s support and efforts on digitalisation of programs.

“Thirdly, as of 2022, the total volume of private domestic and foreign investments in the fintech payment infrastructure of SEA amounted to about $60b. $26.5b of this amount was invested between 2021 and 2022.” the report added.