Trust as Currency: Securing the Future of Payments in Asia’s Digital Economy

As Asia continues its rapid shift toward a digital economy, one thing has become clear: the future of payments in the region hinges on trust. With digital payments becoming the norm, especially in mobile-first markets, secure, seamless, and personalised experiences are now baseline expectations. But as fintech innovation accelerates, trust is no longer a nice-to-have, it’s non-negotiable.

A Rapidly Transforming Payment Landscape

Asia is now a global leader in digital payments with a transaction revenue of 5.26 trillion USD in 2024, which is expected to grow to 7.38 trillion USD by 2028. From digital wallets to contactless cards, adoption rates have soared across the region. Countries like China, India, and Singapore are at the forefront, leveraging fintech innovation to offer diverse, user-friendly payment options that are transforming daily life. In the Asia-Pacific region, digital wallets accounted for 74% of e-commerce transaction volume, compared to credit cards, which held a 20% share.

In China, platforms like Alipay and WeChat Pay have made mobile payments ubiquitous, powering transactions across retail, dining, public transport, and even peer-to-peer transfers. India’s Unified Payments Interface (UPI) has revolutionised real-time payments, enabling seamless transfers with just a smartphone. Supported by government initiatives like Digital India, such tools have encouraged and simplified access to financial services and expanded digital inclusion, and in turn, reshaped how people interact with money.

With digital wallets and QR code payments reshaping Asian marketplaces, regions like Southeast Asia are seeing exponential growth, with gross transaction value for digital payments expected to reach more than 1 trillion USD in 2025. Now with more digital solutions and ways to pay, the need for secure systems which consumers can trust is imperative for businesses to minimise loss of revenue or cart abandonment. 

Why Trust is the New Currency

From the use of artificial intelligence, automated payment systems, saved payment details and more, payments are becoming easier to complete.  However, with this simplification comes the risk of cybercrime to steal details or commit fraud. According to Visa, in 2024, the payment methods which experienced the highest fraud rates in the Asia-Pacific were digital wallets/e-wallets (74%), buy now, pay later schemes (69%) and e-commerce mobile transactions (64%). As a result, consumers are more cautious than ever and expect businesses to provide secure payment systems, and so the use of secure payment technologies is essential for merchants to keep consumers and strengthen their digital transaction experience. 

Innovation Rooted in Confidence

Payment technologies are frequently combining digital identity authentication methods with payment methods, such as wallets, to enable safe verification methods for payments. Users are also able to select two-factor authentication options, requiring them to verify their identity through email, money apps, and text codes to minimise the potential of successful fraudulent activity. 

Biometric data, such as fingerprint and facial recognition, are being used to improve digital wallet security, as seen through WeChat Pay and Alipay in China, which require facial recognition to complete a payment. Additionally, in India, PhonePe and Paytm use Aadhaar authentication. Not only are these platforms advancing in secure technologies, but they are also promoting financial inclusion, making it safer for communities to make payments with lower risks. 

Beyond the use of personal identification, payment technologies such as generative AI are being implemented at multiple stages of the payment process to minimise risk and ultimately enhance trust between consumers and merchants. From automating data and reporting on customer actions, identifying fraudulent activity and automating block transactions for fraud prevention, generative AI is directly addressing many of the pain points merchants face, which hinder trust in their brands. In addition to its contribution to fraud prevention, generative AI has the capability to help strengthen trust and loyalty between consumers and brands, through their automated client servicing, targeted marketing and cross-selling opportunities to provide customers with a unique, tailored experience.

Merchants: Enablers of Trust and Innovation

While fintechs and regulators shape the foundations, such as those of advanced security tools and digital wallets, it’s merchants who bring innovations to life and accessible to consumers globally. They play a pivotal role in bridging new technologies with everyday user adoption. They’re the ones interfacing directly with consumers, normalising new payment technologies, simplifying digital experiences, and helping to build trust at every touchpoint.

To do this effectively, merchants must lean into technologies that enhance convenience and trust:

• Digital wallets and instant settlements for speed and efficiency
• Buy Now, Pay Later (BNPL) options to support flexible spending
• Biometric authentication and blockchain for transparency
• Generative AI and IoT to tailor customer journeys
• Cybersecurity and edge computing to protect personal data

In short, trust isn’t just built through secure transactions; it’s built through consistency, relevance, and ease across all channels. Merchants are also reaping tangible benefits from the adoption of faster and more secure authentication systems. Beyond enhancing security and reducing fraud, these technologies are actively driving higher conversion rates and lowering cart abandonment. Solutions like Click to Pay, which securely store users’ card information and streamline the checkout process, have significantly improved the customer experience by removing friction at the point of payment. By making transactions both safer and faster, merchants are turning trust into a competitive advantage, not just protecting their customers, but converting more of them.