The Asia-Pacific (APAC) region has become a world leader in the adoption of real-time payments, with nearly a quarter of all transactions in the region being made in real time.
Overall, APAC processed 185.8 billion real-time payments in 2023, as reported by ACI Worldwide, with three of the top four countries being India, Thailand and South Korea.
Let's explore the reasons behind the massive growth in the adoption of real-time payments in APAC, the positive impact on APAC populations, why this growth is set to continue, and the significance of real-time payments monitoring.
Why APAC is a world leader in real-time payments
The APAC and MEA regions include the countries with the highest levels of unbanked and underbanked consumers in the world.
These large populations have been predominantly cash economies, many unbanked, or with low credit usage and poor financial inclusion – and it’s these countries that are now feeling the benefits of new, game-changing RTP schemes.
Strong government and regulatory support
The rapid promotion, development and active support of real-time payment systems has been embraced by most APAC governments to drive financial inclusion and digital transformation. Governments in countries like India offer subsidies, incentives, and rewards to promote digital transactions, making real-time payments accessible even in previously unbanked rural areas.
Rapid mobile and internet penetration
The widespread use of smartphones and affordable internet has enabled greater access to real-time payment platforms, even in rural areas of India and China, where they have embraced mobile payment apps.
A growing consumer demand for convenience
Throughout the APAC region, a tech-savvy population, especially younger generations, prefers digital solutions over cash. This demand is instrumental in driving innovation and adoption of real-time payments.
Cross-border payment innovations
APAC countries are leading the world in real-time cross-border payment collaborations, reducing settlement times and costs for remittances and trade. For example, the link between Singapore's PayNow and Thailand’s PromptPay is a model for cross-border payments.
Advanced Payment Infrastructure
Robust digital payment infrastructures in countries like China, India, and Singapore can support high transaction volumes securely and efficiently, while open APIs, interoperability standards, and scalable cloud-based systems are powering the rapid growth of real-time payments.
Download the whitepaper to uncover the criticality of RTP monitoring
Why real-time payments monitoring is critical
With the complexity and rapid growth of real-time payments comes the associated need for robust security, compliance and operational efficiency.
Increasing growth
Ever-increasing transaction volumes need the most advanced and sophisticated monitoring tools to ensure a high system uptime, efficient processing and fraud prevention. The most comprehensive monitoring tools will proactively detect system performance anomalies, improving operational efficiency.
Fraud and cyberattacks
Because of their instantaneous nature, the reduced time to mitigate risks makes transactions more vulnerable. The APAC region, with its widespread digital payment user base is a standing target for phishing and cyberattacks, fraudulent transactions and account theft – intensifying the demand for advanced monitoring solutions.
Regulatory minefields
With APAC governments and regulators imposing stringent rules and significant fines to curtail money laundering and cybersecurity breaches, RTP monitoring systems enable financial institutions to comply with these regulations.
Operational efficiency
With the increase in transaction volumes, the pressure is on financial institutions and payment processors to ensure system reliability and prevent delays or failures.
Real-time monitoring tools provide actionable insights into system performance, helping institutions optimize processes and maintain seamless operations.
The expansion of fintech and payment ecosystems
APAC has a thriving fintech ecosystem that includes startups and established players who can integrate real-time payments into super apps, e-commerce, and gig economy platforms.
Monitoring solutions are essential to safeguard and troubleshoot these platforms, ensuring secure and smooth payment experiences for users.
Customer experience and satisfaction
In a competitive arena, ensuring secure, seamless, and error-free real-time transactions is critical to building and maintaining customer trust.
Proactive monitoring minimizes disruptions, enhances user confidence, and reduces the risk of reputational damage.
Data-driven insights for competitive advantage
Real-time payment monitoring tools also provide valuable data insights into transaction trends and user behavior. This enables financial institutions to actively review and enhance their services to gain a competitive edge in a rapidly growing marketplace.
Monitoring real-time payments is not a choice but a necessity for financial institutions aiming to stay competitive in the payments industry, particularly in dynamic and emerging markets like APAC.
The need to leverage actionable, real-time payment insights has never been greater. Analytics help to increase understanding of customer segments, and track key performance indicators.
Real-time payments are becoming more and more crucial for managing liquidity and working capital for businesses in less prosperous countries.
Monitoring real-time payments provides end-to-end observability and granular insights throughout entire payment ecosystems, keeping them secure, efficient and scalable.
