Retail holds 71% of APAC fintech market in 2025

Enterprise users to expand at 25.47% annually through 2031.

Retail users will continue to account for the largest share of the Asia-Pacific financial technology (fintech) market, holding 70.9% in 2025. 

However, business users are expected to record the fastest growth, with a projected CAGR of 25.47% through 2031, according to Mordor Intelligence’s report.

The increase is linked to continued digitisation amongst small and medium-sized enterprises, driven by operational changes during the pandemic and government programmes promoting cashless payments across APAC markets.

The market is projected to reach $167.71b in 2026, up from $144.87b in 2025.  It is expected to grow to $348.1b by 2031, reflecting a compound annual growth rate of 15.76% from 2026 to 2031.

Cross-border payment services are seeing stronger adoption from business users, particularly export-focused manufacturers in Vietnam, Thailand and Malaysia. 

Many are seeking alternatives to traditional correspondent banking systems, where international settlements can take three to five business days.

Embedded finance is also gaining ground amongst businesses as e-commerce platforms and supply chain systems integrate payments, lending and working capital services.

In 2024, Funding Societies acquired CardUp to build integrated business-to-business payment and lending services across Southeast Asia. 

Airwallex has also expanded into expense management and corporate cards, reflecting broader convergence in business financial services.

Growth in the retail segment is expected to moderate as smartphone penetration nears saturation in developed APAC markets. 

However, rural communities and elderly users remain underserved, particularly with demand for simplified financial products designed for basic smartphones and feature phones.

Mobile applications will remain the main access channel, accounting for 72.62% of the market in 2025. 

At the same time, point-of-sale and Internet of Things devices are forecast to record the fastest growth, with a CAGR of 23.72% through 2031, as contactless payment infrastructure expands across retail settings.

Merchants are increasingly adopting integrated payment terminals that accept QR codes, near-field communication payments and biometric authentication without separate hardware investments. 

In Singapore, hawker centres are rolling out smartphone-based point-of-sale systems to reduce reliance on traditional card terminals. In Malaysia, wet markets are adopting similar systems. 
In Indonesia, small neighbourhood shops known as warung are deploying QR code displays that link to multiple payment networks.