In Southeast Asia, e-wallets are rapidly emerging as the most used payment method, a trend that’s particularly pronounced in countries like Indonesia and the Philippines where a large proportion of the population still lack access to traditional banking services and where governments are pushing for greater usage of cashless transactions, a new study by Visa shows.
The annual Visa Consumer Payment Attitudes Study, conducted with CLEAR in Q4 2023 on 6,550 consumers across Singapore, Malaysia, Indonesia, Vietnam, the Philippines and Thailand, reveals a surge in e-wallet adoption across the region, with 79% of respondents reporting they use this payment method, outpacing cash (77%), debit and credit cards (70%) and Internet banking (70%).
Indonesia and the Philippines lead in e-wallet usage, with 92% and 87% of respondents, respectively, using the payment method, especially QR payments and mobile payment apps.

Fintech innovation, government initiatives drive e-wallet growth in Indonesia
In Indonesia, rapid adoption of e-wallets is being driven by advancements in financial and technological infrastructure, a large and dynamic economy, and high private sector investment.
The country also boasts a thriving fintech ecosystem with major players such as GoPay, OVO and Dana, and is a hotspot for fintech investment, consistently ranking among the top recipients for venture capital (VC) and private equity funding in Southeast Asia.
The Indonesian government has also played a critical part in fostering digital payments. Initiatives like QRIS (Quick Response Code Indonesian Standard), a national standard for QR code payments launched in 2019, have allowed for standardization, making it easier for businesses and consumers, while collaboration between the government and fintech firms have helped enhance financial inclusion through clear regulations.
E-wallets gain momentum in the Philippines amid financial inclusion efforts
In the Philippines, e-wallet adoption has surged due to the country’s large unbanked population and ongoing efforts from the government to improve financial access.
The Digital Payments Transformation Roadmap (DPTR), introduced in 2020, aims to convert at least 50% of all retail payment transactions into digital form by 2023. That goal was surpassed, with the share of digital payment transactions in the Philippines surging to 52.8% last year.
The rise of e-wallet usage aligns with other improvements in financial access observed in the Philippines these past years. According to the 2021 Financial Inclusion Survey by the Bangko Sentral ng Pilipinas (BSP), formal account ownership stood at 56% in 2021, a remarkable rise from 29% in 2019, 23% in 2017 and 17% in 2015.

Much of that growth was driven by soaring adoption of e-money accounts, highlighting the pivotal role digital wallets play in expanding access to financial services.
In 2021, e-money accounts surpassed bank accounts as the most commonly held financial accounts in the country. Between 2019 and 2021, penetration of e-money accounts skyrocketed, increasing more than fourfold from 8% to an impressive 36%. By contrast, the growth of traditional bank accounts was more modest, rising from 12% to 23% during the same period.

Cash and cards still play a key role in Southeast Asia’s payment landscape
Despite increased adoption of e-wallets in Southeast Asia, cash and payment cards remain key components of the payment landscape and are both widely preferred among consumers.
On average, cards (34%) are the favored payment option for consumers in Southeast Asia, ahead of mobile wallets (26%) and cash (26%), the survey found.
Card payments are especially prevalent in more mature markets such as Singapore and Malaysia (91%) where they maintain a deeper foothold than other newer payment methods. They are also preferred by Baby Boomers (born between 1946 and 1964) who tend to have more disposable income than younger generations, as well as affluent spenders.
Furthermore, card payments dominate in terms of frequency, with 34% of consumers using cards multiple times a week compared to 26% for mobile wallets.

Embedded finance picks up steam
Embedded finance, which integrates financial services into non-financial offerings, is highlighted as one of the top fintech trends emerging in Southeast Asia.
Embedded payments, already popular in the region, have been used by almost half of the consumers surveyed with adoption being particularly strong in Malaysia (58%) and Indonesia (60%).
Interest however is high across the region with 59% of non-users in Southeast Asia expressing interest in trying the payment method in the future. Convenience (56%) and speed (46%) are the main drivers of interest.

In addition to payments, embedded lending is also growing in Southeast Asia with the Philippines (54%) and Indonesia (53%) emerging as top markets by usage. Users cited flexibility (38%) and the convenience of applying for loans or financing (36%) as the main reasons for usage.

Finally, embedded insurance has been used by 37% of consumers across Southeast Asia with travel insurance (63%) being the most popular insurance type, followed by mobile phone (54%) and e-commerce (45%) insurance. These solutions are largely being adopted in Vietnam (47%), Malaysia (45%), Indonesia and Thailand (43%), driven by consumers’ demand for convenient and relevant coverage (55%) and less arduous claims processes (45%).

Featured image credit: edited from freepik