The adoption of QR payment apps in Southeast Asia has been on a meteoric rise, with analysts from UnaFinancial reporting a substantial surge in user numbers in Singapore, Malaysia, and Indonesia. In July 2023, the total number of users of these cashless payment systems reached an impressive 997,000 people, and experts predict this figure could soar by 78% to a staggering 1.77 million people by 2025.
Breakdown of QR Code User Growth
July 2023 witnessed substantial growth in QR code users across the region. Indonesia led the way with 562,000 users, followed by Malaysia with 338,700 users and Singapore with 96,700 users.
Factors Driving QR Payment Adoption
Indonesia has experienced an 11% monthly growth in QR code usage since September 2018, potentially attributed to the introduction of a mandatory national QR code system, known as QRIS, implemented by the Central Bank of Indonesia.
Malaysia saw a sudden surge in QR payments during April and May 2020, coinciding with the enforcement of quarantine measures amidst the pandemic. During this period, 45,000 and 118,000 new users adopted QR payments, reflecting the practicality and safety of contactless transactions during challenging times.
Singapore has been steadily advancing its QR payment ecosystem since 2018, with an average monthly growth rate of 2.3%. This growth has been largely consistent and has not been subject to the same external shocks as seen in Indonesia and Malaysia.
Projections Using Exponential Smoothing
Analysts at UnaFinancial employed the exponential smoothing method to project future QR code user numbers. Their forecast suggests that, by 2025, the total number of users in the three nations could reach 1.77 million. Out of this estimated total, Singapore is expected to contribute 122,100 users, Malaysia 787,500, and Indonesia a remarkable 865,300, solidifying Indonesia’s position as the regional leader in QR payment adoption.
Cross-Border QR Payments on the Horizon
The analysts also noted a significant factor likely to fuel further growth in the near future, which is the impending introduction of cross-border QR payments. In a promising move, five ASEAN countries—Indonesia, Singapore, Malaysia, Thailand, and the Philippines—have committed to collaborating on cross-border payments facilitated by QR codes and e-wallets.
This initiative has already gained traction, with Bank Negara Malaysia (BNM) and the Monetary Authority of Singapore (MAS) launching a cross-border QR code payment system between Malaysia and Singapore in March 2023. Additionally, Bank Indonesia (BI) and Bank Negara Malaysia (BNM) recently announced their plans to implement a cross-border QR payment system, with the launch between Indonesia and Singapore scheduled before the end of 2023.
As QR payments continue to reshape the financial landscape in Southeast Asia, these developments underscore the potential for a seamless and interconnected digital payment ecosystem, bringing convenience and efficiency to users and businesses across the region.
