Consumers in the Asia-Pacific (APAC) region are leading the charge in digital payment adoption. It is the only global region where digital wallets accounted for the majority of both in-store and e-commerce transactions in 2024. More striking still, emerging markets like Thailand are driving this innovation, developing breakthrough solutions that achieve remarkable scale while addressing financial inclusion. This entirely challenges the notion that payment innovation typically flows from advanced economies to emerging markets.
Cash usage across APAC has dropped sharply over the past decade as consumers, merchants and policymakers have sought to embrace digital payments. Leading this transformation are China (5% cash usage) and South Korea (7%), while emerging markets like the Philippines (41%) and Thailand (31%) remain more cash dependent. This matters because cash reliance disproportionately affects lower-income and unbanked populations - in Thailand, 63% of adults fall into these categories.
Yet Thailand stands at a crucial turning point. While there continues to be a high reliance on cash, Thai consumers are rapidly adopting digital alternatives, with account-to-account (A2A) transactions now comprising 44% of spending, driven largely by the success of PromptPay. Although cash remains a key entry point into the financial ecosystem in Thailand, digital payments are playing an increasingly important role in driving access and inclusion.
Initiatives backed by public authorities across emerging markets are reshaping the global payments playbook. There is often the assumption that innovation in financial inclusion solely originates from advanced economies. In reality, emerging markets are often at the forefront of innovative payment solutions that meet local needs and, in turn, influence the global landscape.
In Thailand, policymakers are committed to accelerating digital payment adoption, with an ambitious target to halve cash circulation by next year through wallet-based payments and interoperable QR codes. Efforts are already underway to achieve this. In 2024, digital wallets started being used as a distribution mechanism for social benefits, targeting traditionally cash-reliant communities. Through state-owned Krungthai Bank's Paotang super app, eligible citizens receive aid via the "g-wallet" feature. This move has directly introduced millions of users to digital payment infrastructure while delivering essential financial support.