The Asia-Pacific (APAC) region is experiencing a massive digital transformation, with its digital economy expected to reach $1.3 trillion by 2027. SMEs, which make up over 97% of businesses in the region, are integral to this growth. As SMEs embrace digital payments solutions, banks and financial institutions must step up to offer holistic solutions. These efforts not only support financial inclusion but also position banks to experience new revenue streams and solidify their long-term relevance. Let’s look at 5 key aspects-
SMEs are the backbone of the APAC economy. For banks, offering digital payment platforms is an opportunity to grow alongside these businesses. Digital merchant acquisition is critical for banks—automating merchant onboarding processes, e-KYC processes and allowing streamlining payments across P2P, P2M, G2P and more can rapidly expand their SME customer base.
For SMEs, managing payments efficiently is essential for growth. Holistic digital payment systems consolidate various payment methods—credit cards, digital wallets, cryptocurrencies—into one unified platform that offer real-time transaction insights, improving overall financial health. This benefits banks by:
A key advantage for banks offering digital payment solutions is the vast amount of transactional data they gain. By utilizing AI-powered analytics, banks can:
Banks can boost SMEs access to digital services in the underserved regions of APAC by partnering with fintechs, that are democratizing formal access to finance and financial services through innovative digital wallets solutions and microfinance loans, even for those with limited credit histories. By doing so, banks can:
Emerging technologies like AI and IoT are reshaping digital payments. To stay ahead, banks must integrate these innovations into their payment platforms:
Supporting SMEs with holistic digital payment solutions is crucial for banks in APAC. By embracing emerging technologies, leveraging data insights, and promoting financial inclusion, banks can create long-term value for SMEs while ensuring their own competitiveness in an evolving financial landscape.
At PureSoftware, Arttha, a BaaS platform is leading this transformation by offering scalable, cloud-native, and digital-focused solutions designed for the needs of SMEs such as digital wallet and payments, loan lifecycle management, digital omnichannel banking, BNPL and more. By leveraging cutting-edge technologies and fostering collaboration, we are committed to enabling SMEs with their full potential and drive the next wave of economic transformation in the APAC.
Connect with us to learn more or book a personalized demo.
Author: Udeet Bhagat
Senior Vice President and Head- Arttha