Digital wallets seize 65% of APAC payments

QR codes and low cost smartphones pushed wallet adoption across the region in 2025.

Digital wallets captured 65.12% of the Asia-Pacific payments market in 2025, driven by QR codes, upgraded contactless technology, and wallets built into low-cost smartphones. 

The transaction volume for digital wallets in the region is projected to reach $21.15t by 2031, according to a report by Mordor Intelligence.

Traditional card networks are adjusting to this shift by using tokenisation technology to secure transactions within these digital wallets. 

Visa’s Token Service alone generated $2b in extra transaction volume across the region in 2024.

Buy Now, Pay Later (BNPL) services are also being built directly into digital checkout systems, allowing users to access credit seamlessly during purchase. 

Whilst contactless point-of-sale systems remain important for transport networks and fast-food restaurants, real-time account-to-account payments are growing fastest in Singapore and Australia, where cost-conscious shops prefer models with zero transaction fees.

New government regulations for security authentication are favouring larger platforms that have the technical resources to keep payments quick whilst meeting strict security rules. 

Although cash usage continues to fall every year, it remains in use within rural areas, creating a demand for payment devices that can process both QR codes and card payments.

In terms of sectors, retail held the largest share of the market in 2025, accounting for 38.10% of transaction volumes across online and physical shops. 

However, healthcare has emerged as the fastest-growing sector, with a projected compound annual growth rate (CAGR) of 13.42% through to 2031.

This healthcare growth is supported by telemedicine platforms and governments embedding subsidies directly into digital wallets. 

In Singapore, a universal QR code system used across 27 public hospitals has shortened queues and automated insurance processing, a system now being adopted by private clinics.

Geographically, China held 43.05% of the total transaction value in 2025, led by multi-service applications. 

However, new state regulations on transaction fees and market dominance have slowed its growth rate. 

Meanwhile, India is leading regional growth with a forecast CAGR of 14.05%, driven by the government's zero-cost Unified Payments Interface (UPI) framework and new technology allowing offline sound-wave payments on basic mobile phones.