Asia-Pacific’s cross-border payment volume is on track to hit US$23.8 trillion by 2032, nearly doubling from US$12.8 trillion in 2024. But behind the headline growth lies a fragmented payment infrastructure where regional scale remains a costly ambition rather than a given.
A new report from Money20/20 and FXC Intelligence, launched at Money20/20 Asia in Bangkok, lays out the numbers – and the growing urgency – for interoperability across Asia’s diverse markets.
“Asia’s payments landscape is evolving quickly, but also with remarkable complexity,” said Daniel Webber, Founder and CEO of FXC Intelligence. “This report underscores the need for intentional collaboration across borders, sectors, and technologies to create truly inclusive financial ecosystems. Interoperability isn’t just a tech challenge—it’s a regional opportunity.”
Growth masks fragmentation
Asia-Pacific’s share of global cross-border flows is expected to rise from 32.2 per cent to 36.8 per cent by 2032. But volume alone does not mean market readiness.
“Growth figures reflect strong momentum but hide deep market disparities,” says Fernanda De Fino, Director of Global Risk & Compliance at EBANX, a global fintech specialising in payments in 29 emerging markets across Latin America, Africa, and Asia. “What works in Singapore doesn’t port over easily to markets like Indonesia or Vietnam”, she adds.
EBANX’s Beyond Borders 2025 report highlights the recent growth of new payment methods, largely driven by emerging economies, and signals significant changes in global consumer behaviour. These methods, characterised not only by their real-time transfer capabilities but also by their seamless, mobile-born, and digital-first operations, are redefining how people engage with financial transactions and fostering the growth of digital commerce.
Though many of these alternative payment methods (APMs) weren’t initially designed for paying merchants, their deep integration into daily life makes them the dominant choice for online purchases in many countries.
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Southeast Asia and India together are projected to see a 122 per cent increase in consumer spending over the next decade, outpacing Latin America (57 per cent) and Africa (103 per cent). According to Statista data in Beyond Borders, online sales are projected to grow by 14 per cent annually across emerging Asian countries over the next two years, with India leading the charge.
Regional players—both large and small—looking to expand must adapt to diverse consumer behaviors and fragmented tech ecosystems. Success hinges on understanding markets shaped by peer-to-peer (P2P) payment habits, which are now accelerating the shift toward digital commerce among new users.
Why interoperability is the next big fintech battleground
Startups looking to win in cross-border payments need a dual approach: deep local integration paired with regional interoperability.
Despite 88 per cent of industry stakeholders rating interoperability as “very or extremely important,” there’s little consensus on how to achieve it.
Real-time payment systems are seen as the most likely driver of integration (66 per cent), followed by digital wallets (59 per cent). But regional fragmentation persists, with no dominant cross-market infrastructure gaining real traction.
“We’re seeing a significant acceleration in how cross-border money moves, and the next decade will be crucial in shaping the infrastructure that powers it,” said Scarlett Sieber, Chief Strategy and Growth Officer at Money20/20. “Asia’s future lies not in a one-size-fits-all model, but in interconnected systems that balance innovation with regional adoption.”
QR codes: A missed opportunity?
Take QR codes, hailed as the low-cost rails for financial inclusion. Thailand’s PromptPay, Singapore’s NETS QR, and Indonesia’s QRIS were all built with similar aims. Yet they run on incompatible specs.
Efforts like ASEAN’s Project Nexus aim to link these systems, but progress has been slower than fintech founders hoped. Even successful efforts like Singtel’s VIA alliance remain limited in adoption beyond core territories.
Meanwhile, China’s WeChat Pay and Alipay continue expanding in the region, adding pressure on local players to compete, or connect.
What founders need to know about Asia’s regulatory maze
The report singles out regulatory complexity as a top barrier to scale. 86 per cent of respondents cite policy discrepancies, from KYC requirements to data localisation, as a persistent challenge.
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“E-wallet rules in markets like Indonesia and Vietnam are constantly evolving, which demands higher compliance standards,” says De Fino. “These changes may create new challenges for fintechs entering these markets.”
Singapore’s sandbox model is seen as a bright spot, but elsewhere, inconsistent rules slow expansion and discourage early-stage fintechs from attempting cross-border moves too soon.
Partnerships: Fintech’s real-world solution to fragmentation
91 per cent of fintech leaders agree that partnerships will shape the region’s infrastructure future. But making those partnerships work is easier said than done.
“The successful ones are balanced, technically, commercially and regulatorily,” says De Fino. “You need clear value for all parties, not just the biggest player.”
Past attempts at integration show the pitfalls: enthusiasm at launch, but little traction when business models aren’t aligned.
Don’t forget inclusion
A major blind spot in the race for scale? Financial inclusion. The unbanked and underbanked still make up a significant portion of the population in Southeast Asia.
Agent banking and cash-in/cash-out points remain critical in countries like the Philippines and Indonesia. Any real cross-border solution must account for these users, or risk leaving millions behind.
Bottom line
Cross-border payment volume in Asia is booming — but founders and fintechs should resist the hype cycle. Regional expansion won’t be plug-and-play. It’ll require local-first design, regulatory foresight, and above all, partnership.
The US$23.8 trillion opportunity is real. But the rails to get there are still under construction.
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