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. The region’s dynamic blend of regulatory diversity, rapid technological adoption, and a vast, digitally savvy population is reshaping the future of payments. As the digital economy accelerates, banks and fintechs in APAC face both immense opportunities and complex challenges in modernizing their payments infrastructure. Understanding the nuances of this landscape is essential for organizations seeking to lead in this fast-evolving market.

What Sets APAC Apart?

APAC’s payments ecosystem is defined by its diversity—culturally, economically, and technologically. In Southeast Asia, financial inclusion remains a pressing issue, with three out of four people lacking sufficient access to financial services. Meanwhile, mature markets like Australia and New Zealand are experiencing disruption from digital challengers and evolving customer expectations. Across the region, the rise of digital wallets, embedded finance, and real-time payments is transforming how consumers and businesses transact.

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 such as ISO 20022. Navigating this patchwork demands agility and local expertise.
Rapid Digital Adoption: The pandemic has accelerated digital transformation, with customers demanding instant, invisible payment experiences that integrate seamlessly into their daily lives.

The Rise of Digital Wallets and Real-Time Payments

Digital wallets and real-time payments have become the norm in many APAC markets. Super apps—multifunctional platforms that combine payments, messaging, shopping, and more—are particularly influential. These platforms, pioneered in China and Southeast Asia, have redefined customer expectations for convenience and personalization. Embedded finance is also gaining traction, enabling non-banking platforms to offer seamless payment, lending, and insurance services directly within their ecosystems.

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 that 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.

Practical Guidance for Banks and Fintechs

To succeed in APAC’s fast-evolving payments landscape, organizations should focus on the following imperatives:

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

Navigating Fragmented Regulatory Environments

APAC’s regulatory landscape is among the most complex in the world. Each market has its own set of rules, timelines, and compliance requirements. Successful payments modernization requires:

Deep local expertise to interpret and implement regulatory mandates
Flexible, modular technology architectures that can adapt to changing requirements
Proactive engagement with regulators to anticipate and shape future developments

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, 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.