The Impact of Online Retail in Asia Pacific on Financial Services and Consumer Payments

Mobile phones are a tremendous tool for consumer engagement.

The transition of retailing online has affected a variety of industries including the financial service space and consumer payments. Traditional mainstream financial institutions must now catch up to alternatives that have entered the market to address consumer segments that were previously overlooked.

In markets where financial institutions have been slower to embrace the shifting retail format, companies have stepped in to offer digital payment platforms to connect consumers to a global marketplace.

Cutting edge is not as important as usability. Simplicity is key.

Additional value can be faster transaction, more secure transaction, or additional rewards. Mobile devices have reduced the cost of offering financial services and driven the transition of retail online in emerging markets. Mobile devices are able to bypass payment infrastructure gaps and allowed many non-traditional payment players in the payment landscape.

Consumers need to be convinced that a new solution adds value.

While mainstream financial institutions may retain the trust of consumers, their necessity in a digital landscape is being challenged by alternatives, and consumers have shown they are willing to try alternatives.

Innovations in Asia Pacific illustrate the importance of online banking and payment platforms being flexible and adaptable to different conditions. There are various factors to consider understanding why consumers may not utilise financial services in a given market.