The Asia-Pacific (APAC) region is emerging as a hotspot for cross-border eCommerce, where fintechs are increasingly positioning themselves to outpace traditional banks. Cross-border transactions in the region have surged, propelled by economic expansion, robust digital infrastructure, and a recovery in tourism.

Historically, these transactions faced high fees, slow processing, limited transparency, and security concerns. Real-time processing through digital solutions will significantly benefit areas previously underserved by traditional banking. Individuals in remote locations will gain faster, more affordable access to financial services, allowing them to participate more fully in the region’s economic growth. Simultaneously, both emerging start-ups and established players continue to transform the fintech landscape, redefining the delivery and experience of financial services.

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By 2030, these innovative approaches are expected to drive over 40% of banking revenue, underscoring the importance of digital adjacencies for growth. We will delve deeper into fintech trends in APAC that are driving finance-as-a-service.

  • Super-app strategy

Unlike traditional app stores or marketplaces, mini-apps are integrated directly within the super-app ecosystem, allowing users to discover, activate, and remove them effortlessly to suit their needs. For businesses, super-apps offer a cost-efficient solution similar to Banking-as-a-Service (BaaS), enabling financial institutions to reduce expenses related to customer acquisition and operations, thus enhancing profitability.

A notable example is AirAsia MOVE, previously known as Airasia Superapp, which debuted in Malaysia in October 2020. Rebranded in September 2023, AirAsia MOVE has evolved into an all-in-one travel app offering online travel agency (OTA) services, including flight bookings from over 700 airlines and 900,000 hotels worldwide.

Users can book flights, reserve hotels, arrange transfers, order food, and shop duty-free, all in one place. Additional features support convenient travel planning, including check-in, boarding pass printing, and baggage tag services. Expectations are that by 2025, 65% of APAC’s gross domestic product (GDP) will be digitalised, amounting to USD 1.5 trillion in consumer spending. Meanwhile, eCommerce is forecasted to grow at a compound annual growth rate (CAGR) of 10% from 2024 to 2029, reaching USD 6.76 trillion by the end of the period.

  • Buy-Now Pay-Later (BNPL) is on the rise

With inflation and economic pressures mounting, Buy Now, Pay Later (BNPL) services offer practical financing, especially in underbanked regions. BNPL enables consumers to make instant purchases and pay over time, benefiting banks by improving customer retention and acquisition, increasing transaction volumes, and strengthening merchant relationships.

According to PayNXT360, BNPL transactions in the region look set to increase by 17.3% year-over-year, reaching USD 232.5 billion in 2024. With adoption projected to grow at a compound annual growth rate (CAGR) of 12.3% between 2024 and 2029, BNPL’s gross merchandise value (GMV) is anticipated to rise from USD 198.2 billion in 2023 to USD 414.5 billion by 2029.

A leading example of BNPL providers in Asia Pacific includes Atome, Singapore’s Advance Intelligence Group subsidiary. With over 40 million users across its ecosystem, Atome has processed over 50 million transactions, achieving a GMV of USD 2.4 billion. Its offerings extend beyond BNPL to encompass payment solutions, loyalty programs, and merchant services, catering to a diverse and expanding regional customer base.

  • Blockchain is here to stay

According to 59% of APAC FI respondents, blockchain is expected to deliver the most value over the next two years, outpacing all other technologies, compared to only 15% globally. It highlights blockchain and cybersecurity as the most critical skills for technological transformation within the financial sector.

Initially, blockchain in the fintech sector focused on building infrastructure—blockchains, protocols, privacy mechanisms, and scalability solutions. In the present day, the scope has expanded to include decentralised use cases within APAC’s capital markets.

The use of blockchain reduces costs and speeds up transaction times for FIs, which fosters greater collaboration across the financial landscape, with applications in interbank lending, settlement processes, reconciliation, and reporting. For instance, traditional FIs now offer blockchain-enabled hedge funds and deposit accounts without intermediaries, showcasing blockchain’s ability to redefine regional finance.

What to expect in the future?

A key focus for financial institutions in APAC is the real-time battle against fraud, a priority that finance-as-a-service must address with advanced technology. As digital payments become more prevalent, institutions must adopt integrated fraud services capable of screening transactions instantly and blocking suspicious activities when necessary.

A multi-layered approach using biometrics, behavioural authentication, multi-factor authentication, and passwords will likely become the standard to enhance security further.

Meanwhile, Generative AI will be crucial in combating identity fraud as sophisticated deepfake technology intensifies financial crime risk and tests the limits of existing KYC controls. Chief Information Security Officers (CISOs) must incorporate GenAI into their cybersecurity strategies to counter these evolving threats, building more robust defences against emerging fraud tactics. These advancements will propel the financial sector toward greater agility, resilience, and customer focus, setting a new benchmark for fintech trends in APAC.