Payments Modernization in Asia Pacific: Regional Challenges and Opportunities

The New Payments Frontier in APAC

Asia Pacific (APAC) is at the epicenter of payments innovation. With a rapidly growing digital economy, a diverse regulatory landscape, and a population eager for seamless financial experiences, the region presents both unique challenges and immense opportunities for banks and fintechs. As digital adoption accelerates across Southeast Asia and Australasia, financial institutions are reimagining their payments infrastructure to stay ahead of customer expectations and regulatory demands.

Regional Dynamics: What Sets APAC Apart?

The APAC region is characterized by its diversity—culturally, economically, and technologically. In Southeast Asia, three out of four people still lack sufficient access to financial services, making financial inclusion a top priority. Meanwhile, Australia and New Zealand are home to mature banking sectors facing disruption from digital challengers and evolving customer expectations. Across the region, the rise of digital wallets, embedded finance, and real-time payments is reshaping the competitive landscape.

Key Regional Challenges

• Financial Inclusion: Large segments of the population in Southeast Asia remain unbanked or underbanked. Institutions that can deliver accessible, digital-first offerings quickly will gain a significant advantage.
• Regulatory Diversity: APAC’s regulatory environment is highly fragmented, with each market imposing its own standards, compliance requirements, and timelines for initiatives like ISO 20022.
• Rapid Digital Adoption: The pandemic has accelerated digital transformation, with customers demanding instant, invisible payment experiences that integrate seamlessly into their daily lives.

Modernizing Payments: The Cloud-Native Advantage

Legacy payment systems, often built on decades-old technology, are struggling to keep pace with the demands of real-time, always-on digital commerce. The answer lies in cloud-native, API-first platforms like Form3, which enable banks and fintechs to:

• Accelerate innovation: Launch new payment products and services at speed, responding to market trends and customer needs in real time.
• Enhance resilience and scalability: Handle surges in payment volumes and integrate new channels without disruption.
• Reduce operational costs: Streamline processes, automate manual tasks, and minimize technical debt.
• Strengthen security and compliance: Embed advanced security controls and adapt quickly to evolving regulatory requirements.

Case Studies: Transformation in Action

1. A Leading Thai Bank’s 12-Week Transformation

A major Thai bank partnered with Publicis Sapient to overhaul its payments and digital banking infrastructure. In just 12 weeks, a multidisciplinary team delivered a new business model and robust technical foundation, leveraging a cloud-native core banking platform. The result: a unified customer experience, rapid product innovation, and the agility to adapt to regulatory and market changes.

2. Siam Commercial Bank’s Digital Leap

Siam Commercial Bank (SCB) in Thailand, with support from Publicis Sapient, launched XPlatform—a one-stop cloud and DevOps solution. This platform accelerated the development of SCB’s digital banking products and services, enabling the bank to engage both banking and non-banking customers in new ways, including through innovative offerings like a food delivery app.

3. Multinational Insurance Company’s Cloud-Based Platform

Across Asia, a leading insurance provider worked with Publicis Sapient to create a cloud-based platform that delivers industry-leading customer experiences and unlocks new growth opportunities. This transformation enabled the company to scale rapidly and respond to evolving customer needs across multiple markets.

Insights from Publicis Sapient’s APAC Leadership

David Murphy, Head of Financial Services for EMEA & APAC, notes: “Three out of four people in Southeast Asia have insufficient access to financial services. Institutions that develop accessible digital offerings quickly will have a significant advantage.”

This insight underscores the urgency for banks and fintechs to modernize their payments infrastructure—not just to compete, but to drive meaningful financial inclusion and economic growth.

Practical Guidance for Payments Transformation

1. Embrace Cloud-Native Platforms: Migrate payment processing to scalable, resilient cloud environments to future-proof your operations.
2. Adopt API-First Architectures: Enable rapid integration with partners, fintechs, and new payment rails to support innovation and compliance.
3. Leverage Payments-as-a-Service: Outsource non-differentiating payment processing to trusted partners like Form3, allowing your teams to focus on customer experience and value-added services.
4. Prioritize Regulatory Readiness: Stay ahead of evolving standards like ISO 20022 by embedding compliance into your modernization journey.
5. Focus on Financial Inclusion: Design digital products and services that are accessible to underserved populations, unlocking new markets and driving growth.
6. Accelerate with Proven Partners: Work with transformation specialists who understand the nuances of APAC’s markets and can deliver at speed and scale.

The Road Ahead: Future-Proofing Payments in APAC

The payments landscape in Asia Pacific will only become more complex and competitive. By embracing cloud-native, modular architectures and leveraging the expertise of partners like Publicis Sapient and Form3, banks and fintechs can deliver seamless, secure, and inclusive payment experiences. The winners will be those who move quickly, innovate boldly, and put the customer at the center of every decision.

Ready to accelerate your payments modernization journey in APAC? Connect with Publicis Sapient’s regional experts to discover how we can help you transform, innovate, and lead in the next generation of payments.