The global digital economy has boomed, transforming how businesses and consumers interact. Digital solutions have rapidly emerged as viable alternatives to traditional services, enabling individuals and enterprises to explore new market opportunities in the last few years at a very fast rate.
Within just two years, more than 330 million users have entered the global e-commerce space, with an expected CAGR of 8.79% from 2025 to 2029.
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In Southeast Asia, this surge in digital adoption has influenced sectors such as online education, food delivery, and financial services. The rise of fintech in Southeast Asia has been particularly notable, driven by increasing demand for accessible and mobile-first financial solutions.
According to recent findings by UnaFinancial, mobile fintech app adoption across the region is projected to climb from 49% in 2024 to 60% by 2030. The Philippines currently leads in adoption, with a rate of 63%, expected to reach 72% by the decade’s end.
Millennials and Gen Z in Southeast Asia are rapidly emerging as the key drivers of digital financial innovation, fueled by their tech fluency and evolving expectations. With the region experiencing dynamic shifts in consumer behaviour, fintech trends in Southeast Asia are increasingly shaped by the habits and values of these younger generations. A study estimates that the share of fintech users from Generations Y and Z across the Philippines, Indonesia, Vietnam, Thailand, Singapore, and Malaysia will grow from 65% in 2024 to 79% by 2030.
Understanding the younger demographics
Gen Z, born between 1997 and 2012, is a digital native who has grown up with smartphones, the internet, and mobile applications as an integral part of daily life. Their comfort with technology and fluency in navigating digital platforms make them early adopters of fintech services, such as digital wallets, budgeting tools, and investment apps.
Recent findings from a report highlight this generational shift. Approximately 60% of respondents have adopted mobile banking, while 58% actively use eWallets, reflecting a clear and growing preference for convenient, digital-first financial solutions. These tools align perfectly with the fast-paced and mobile lifestyles of Gen Z and Millennials, offering flexibility and real-time access to financial management.
Sustainability also plays a key role in their financial choices—79% of Millennials and 75% of Gen Z consider it important, which presents a valuable opportunity to incorporate socially and environmentally responsible solutions.
Gen Z prefers BNPL over traditional shopping
There is a close link between the rapid growth of Buy Now, Pay Later (BNPL) services in the region and its youthful and digitally fluent population. This payment method aligns seamlessly with their shopping behaviours, characterised by impulsive purchases and a strong preference for lifestyle-oriented spending.
Unlike older generations, Gen Z is less reliant on traditional credit systems and more inclined to embrace flexible alternatives, such as BNPL. With just a few clicks, users can complete a purchase without upfront cash and pay in manageable instalments, making the experience both efficient and appealing. Millennials tend to use “pay later” services for essential needs, such as internet, utilities, and recurring monthly expenses, reflecting a more cautious and budget-conscious approach.
Indonesia is on track to lead the region with Buy Now, Pay Later (BNPL) transactions reaching USD 16.8 billion by 2027, a 209% increase from 2024.
The growing popularity of eWallets
The pandemic accelerated a major shift in payment behaviour, pushing electronic payments to the forefront of online transactions. Among the most notable changes was the rapid growth of eWallet usage, with 79% of Southeast Asians using this as a payment method. In Malaysia, 71% of Gen Z consumers actively use eWallets, followed by 60% of Millennials and 59% of Generation X. These users are also primarily based in urban areas, where the demand for services like food delivery and ride-hailing is high.
In Indonesia, transactions for taxis and ride-sharing services alone account for 59% of eWallet spending, underscoring the technology’s integration into city life. According to the Visa Consumer Payment Attitudes Study, at the end of 2024, Indonesia and the Philippines have the highest eWallet usage, with 92% and 87%, respectively, highlighting these countries’ enthusiastic embrace of digital payments.
Looking ahead, the growing influence of millennials and Gen Z in Southeast Asia presents a significant opportunity for startups to capitalise on an increasingly digital and mobile-first population. As fintech in Southeast Asia continues to evolve, expectations are that this demographic shift will be pivotal in driving digital inclusion and expanding financial access.
By tailoring products to meet the preferences of younger users while also embedding financial literacy, transparency, and sustainability, companies can unlock long-term growth and customer loyalty. Embracing this momentum supports startup growth and contributes to broader fintech trends in Southeast Asia, ultimately strengthening the digital economy across ASEAN.