Article
5 APAC payment trends for 2025
How brands like ZALORA, Eats365, and Klook are keeping pace with the rise of sustainable shopping, the return of retail tourism, tackling fraud, and more.
Payments are evolving across APAC
With surging investment in technology, finance, and energy, the Asia Pacific region is booming. This growth of activity provides the perfect foundation for businesses to innovate and elevate their customer experiences, not just now but in the future.
But where should they focus their efforts now to make the biggest impact over the next five years? Ben Wong, General Manager for South East Asia and Hong Kong at Adyen, shares his outlook on the payment trends shaping 2025 and how businesses can stay ahead.
“As I speak with merchants across the region, one thing is clear – customer expectations are evolving faster than ever. Retailers must adapt to an increasingly digital, cashless, and seamless payment landscape. Those who embrace innovation will thrive, while those who lag behind risk losing out to competitors who can offer smoother, more flexible payment experiences. With this in mind, here are the five biggest payment trends I see shaping APAC in 2025:
Countless checkout choices
Embedded payments, exponential potential
Brands that lead with purpose will lead the market
The rise of travel retail
Fighting fraud with AI
Let’s take a deeper dive.
Countless checkout choices
Over half of consumers (56% in Singapore, 68% in Hong Kong) will abandon an in store purchase if they do not have a variety of payment options. It has become essential to offer customers the flexibility they have come to expect. In response, many businesses are now supporting payment options such as Buy Now, Pay Later (BNPL) and seamless digital wallet integrations. Businesses that quickly set up local payment options can stay ahead of customer needs and ensure the highest possible conversion rates.
This trend is particularly impactful in emerging markets, where digital wallets dominate the payments landscape. And, in more developed markets, instant checkout solutions and recurring payment options are helping to improve convenience and build customer loyalty.
In 2024 alone, the estimated annual value of card transactions in the Singapore cards and payments market was $120.7 billion and is expected to grow at a compound annual growth rate of more than 11% during 2024-2028. In that context, cashless solutions like Tap to Pay can be hugely impactful. It reduces reliance on traditional payment hardware, offering businesses a mobile, secure, and flexible way to accept contactless payments. With quick setup and seamless integration, it transforms an iPhone or compatible Android device into a payment terminal.
Embedded payments, exponential potential
According to a recent report we created in collaboration with Boston Consulting Group, top platforms are now generating more than 50% of their revenues from embedded payments. Platforms in Asia Pacific are grasping this opportunity with both hands. By seamlessly incorporating payments into their ecosystems, they are providing more streamlined payment experiences, optimized for the businesses they serve.
Eats365, a restaurant point-of-sale provider, is doing just that. Through its 365pay solution, Eats365 integrates Adyen’s payment technology to provide F&B merchants with seamless, omnichannel payments capabilities, whether at the counter, online, or via self-service kiosks. By embedding payments, Eats365 enables businesses to deliver frictionless, contactless payments for a smoother customer experience, streamline operations with automated transaction tracking and reconciliation, and expand easily with access to local and international payment methods.
In a market like Hong Kong, where high rental rates and a manpower shortage put razor-thin margins under even greater pressure, such technological solutions are essential for F&B businesses to thrive and expand with access to both local and international payment methods.
Brands that lead with purpose will lead the market
According to a Nielsen survey, 81% of consumers in Asia Pacific feel strongly that companies should help improve the environment. This is mirrored by new regulatory pushes for greener practices in the region, like:
The Malaysian government implementing policies to promote sustainable development
Singapore aligning with global growth trends by focusing on sustainability
Hong Kong responding to pressures from Gen Z and embracing sustainable practices
APAC brands are following suit; adopting sustainable materials, reducing packaging waste, and embracing circular economy models such as resale, rental, and recycling programs.
But this goes further than an environmental consciousness. APAC consumers are increasingly socially aware and many (especially Gen Z) seek meaning from their purchases. In Singapore, 40% of consumers, and 36% in Hong Kong, want retailers to be more transparent with their sustainability or social responsibility efforts. And they are willing to pay for it – 40% of Gen Z consumers would spend more if they knew where and how the product was sourced.
And brands are responding. ZALORA, a leading online fashion platform in Southeast Asia, champions sustainability through its "People + Planet Positive" vision. It focuses on climate action, circularity, and fair and ethical sourcing.
Many brands are also making it easier for their customers to make a difference by facilitating donations at checkout. Prompting customers to donate to a charity when they’re checking out is very powerful. They have already entered their payment details and can donate with a single click. At scale, the results can be incredible. For example, our checkout donation feature, Giving, generated nearly €25m in donations to date.
The rise of travel retail
This year, the travel market is expected to reach US$490 billion, surpassing its 2019 value by 10%, highlighting that Asia Pacific payment trends are extending into travel retail. This resurgence is fueled by increased domestic and international travel. As always, shopping is high on the tourist agenda as travelers seek out duty-free luxury goods or local specialty items. This also means an increase in foot traffic at airports and other hubs where travelers have time to browse and buy.
However, payment barriers remain a key friction point for international shoppers. Given that such a high proportion of shoppers will simply walk out if they can’t pay how they want, brands must welcome tourists by supporting their favorite payment methods and local currencies.
Hong Kong presents a prime example. The city welcomed 44.5 million tourists in 2024, including 10.5 million non-mainland Chinese visitors, a 44% increase compared to previous years. In response, the government has launched a major tourism blueprint, investing HK$120 billion (US$15.5 billion) over the next five years to attract visitors from the Middle East, Southeast Asia, and mainland China.
Despite this influx, many Hong Kong retailers are missing out on sales. Research shows that 55% of global consumers would abandon a purchase if they cannot pay with their preferred method, yet only 22% of Hong Kong retailers currently accept international payment methods. Without a strategy to support global digital wallets, cross-border transactions, and seamless payment experiences, brands risk losing out on high-value international shoppers.
Fighting fraud with AI
Unfortunately, with the ongoing growth of ecommerce across the region comes a rise in payment fraud. The emergence of new payment methods and channels has created new vulnerabilities and fraudsters are exploiting weak security measures in mobile payments, BNPL services, and online marketplaces.
Consequently, fraud prevention is a top priority for businesses in the region and they’re leaning on new technology innovations for help. Over 80% of organizations in APAC have implemented AI-driven fraud detection solutions to protect transactions in real time.
These advanced models use machine learning to identify patterns of suspicious behavior, reducing false positives while stopping fraud before it happens. But, in addition to AI-powered fraud tools, retailers should use biometric authentication, behavioral analytics, and network intelligence to identify fraud in real time. The right payment provider should take care of all of this for you.
Klook tackles payment fraud via Adyen Network Tokenization. Network tokenization is an automated process that replaces card data with a non-sensitive reference called a network token. These tokens are unique to Klook, meaning that, if stolen, they’re useless to fraudsters. This keeps online and recurring payments safer while ensuring a smooth checkout experience for customers.
Our optimization engine, Adyen Uplift, uses AI and global transaction data to block fraud in real time while ensuring seamless approvals for legitimate customers.
Some things never change
Asia Pacific in 2025 is buzzing with optimism, creating exciting opportunities for businesses over the next few years. With strong momentum in travel, retail, and investment, I believe the region is primed for growth, unlocking plenty of potential for ambitious businesses.
While payments trends evolve, the fundamentals of great business remain the same through delivering seamless customer experiences and staying ahead of fraud. Keeping up can be challenging, but the right technology and partners can help businesses adapt efficiently and focus on growth.”
Curious to explore how we can help you stay on top of new Asia Pacific payment trends? Talk to a payment expert >
