“E-MONEY” and interbank transfers are duking it out in the region, as their growth outstrips that for debit and credit cards, a report projected on Thursday.
Card payments declined in 2020, with transactions having shrunk as retail activity dimmed during Covid-19 and banks slowed card issuances.
Amid stiff competition, tech firms are now turning from digital money services to banking, said the report from S&P Global Market Intelligence analyst Sampath Sharma Nariyanuri.
These non-banks are expected to dominate the fintech scene in Indonesia and the Philippines, while incumbents stay solid in Singapore, Thailand and Malaysia. A slew of non-banks – especially e-wallet providers – either have more transaction value or are growing faster than banks in South-east Asia.
For instance, non-banks were behind 72 per cent of e-payment value in Thailand in 2019; in Malaysia, three non-banks together held the majority of the market share, the report noted.