Empowering SMEs in APAC with Holistic Digital Payments solutions: A Vision for the Future

September 25, 2024

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-

Driving SME Growth: A Strategic Priority for Banks

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. 

  • Long-Term Customer Value: By delivering future-ready payment platforms, banks can access SME transactional data to offer personalized financial services, enhancing customer loyalty. 
  • Expansion into New Markets: As SMEs engage in cross-border commerce, banks can support their growth with multi-currency and cross-border payment solutions, further strengthening their relationship with these businesses.

Enhancing Operational Efficiency for SMEs and Banks

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: 

  • Reducing Costs: By simplifying payment processes, banks reduce manual intervention, lower reconciliation costs, and improve operational efficiency. 
  • Supporting Scalability: Holistic payment systems allow SMEs to scale with ease, while banks benefit from increased transactional volumes and deeper relationships. 

Leveraging Data-Driven Insights for Growth

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: 

  • Targeted Lending and Credit Scoring: Many SMEs lack formal credit histories. However, data from digital payments provides banks with insights into cash flow, business performance, and transaction patterns, enabling more accurate and personalized lending products. 
  • Personalized Financial Services: Data insights allow banks to offer customized loans, predictive financial tools, and other tailored services, improving SME engagement. 

Enabling Access to Digital Services and Innovation

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: 

  • Support Underbanked SMEs: Providing mobile payment systems and alternative credit scoring methods ensures SMEs can access the capital they need to grow. 
  • Enable Inclusive Growth: Banks can offer innovative services such as BNPL (Buy-Now-Pay-Later) and microloans, helping SMEs thrive and encouraging broader economic participation. 

Embracing Future Technologies to Stay Ahead

Emerging technologies like AI and IoT are reshaping digital payments. To stay ahead, banks must integrate these innovations into their payment platforms: 

  • AI for Automation: AI can drive fraud detection, customer support automation, and real-time financial forecasting, helping SMEs make smarter decisions.
  • IoT-Enabled Payments: As IoT devices become prevalent, banks can support SME growth by enabling seamless, automated payments through connected devices. 

Conclusion: Why Banks Must Act Now

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

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