Four factors shaping APAC’s digital retail payments in 2025

Cash remains relevant in Malaysia and Singapore.

Central bank digital currencies (CBDCs), cryptocurrency, buy now pay later (BNPL), and cash resilience will influence digital retail payments in the Asia Pacific (APAC) region.

Digital retail payments across the region are expected to continue expanding in both mature and high-growth markets, according to a report by Forrester.

Despite forecasts predicting its decline, cash remains relevant, accounting for a portion of both online and offline transactions in markets like Malaysia and Singapore, Forrester Senior Analyst Meng Liu said.

Cash’s popularity reveals lingering barriers to digital-first solutions, even as digital tools rapidly expand, Liu noted.

BNPL services have rebounded, particularly amongst Gen Z and Millennial customers. This reportedly signals growth potential across the region as customers opt for flexible terms and zero-interest payment structures.

Cryptocurrency and CBDCs are also on the rise.

In Singapore, the use of cryptocurrency and stablecoins to pay for purchases has increased steadily in Singapore, especially for online transactions.

Regulations have increased trust in this space, which is anticipated to grow in the coming years as well-known brands facilitate the use of crypto, Forrester said.

CBDCs are making inroads, with nations like metro China driving adoption through government support and partnerships with fintech firms.

In both metro China and metro India, 17% of online adults reported using a CBDC as a payment method in the past three months for online purchases, the report said.