Fintech Adoption Surges in Southeast Asia, Led by Digital Payments and Online Lending

Usage of digital financial services is witnessing strong growth in Southeast Asia this year, a trend mostly driven by digital payments and digital lending adoption, according to the eConomy Southeast Asia Report 2021.

According to the report, all digital financial services are flourishing in Southeast Asia, but digital payments and digital lending, in particular, have been leading the change.

On the consumer side, Google searches witnessed a 14% YoY increase for lending-related queries, the report says. Meanwhile, digital merchants are showing interest in embracing digital lending with about 30% stating they would likely increase usage of supply chain financing and buy now, pay later (BNPL) offerings in the near future.

Digital lending outstanding balance is projected to reach US$39 billion this year, up 48% from 2020. Between 2021 and 2025, the figure is expected to grow 31% to reach US$116 billion.