Southeast Asia will become the fastest-growing region for mobile wallets globally, with mobile wallets in use expected to triple in the next five years, a research report by London-based fintech firm Boku.
Within the region, Indonesia is one of the fastest-growing mobile payment markets, with mobile wallet users set to more than triple (from 63.6 million to 202 million) by 2025. Ovo dominates the market share in the region with 38 per cent of users.
Malaysia, on the other hand, is lagging behind other Southeast Asian countries, as mobile wallets are slower to enter and gain traction in the market. Malaysia is currently dominated by a triopoly, with GrabPay and Touch ‘N Go (together with about 40 per cent market share), and Boost with roughly 22 per cent market share, the report stated.
Also Read: Is Southeast Asia now more accepting of mobile wallets?
However, Malaysia is set for hyper-growth over the next five years, as mobile wallet users and penetration are set to triple.
In spite of all the developments within the region, Singapore takes the cake with mobile wallet penetration set to reach nearly 95 per cent by 2025 from 30.4 per cent in 2020.
Despite its small population, the mobile payments ecosystem is thriving, with a number of offerings that include the regional super app, Grab, a telco wallet (Singtel Dash), a bank-based wallet (DBS payLah!) as well as the digitisation of the national transit card, EZ-Link.
Another major trend in the mobile wallet market in Asia is the rising expansion of major Chinese wallets outside of their home market. This includes WeChat Pay and bKash.
The report further suggests that while Chinese e-wallets continue expansion it seems unlikely that they will conquer emerging Asian markets as many once thought.
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