Why It's the Right Time to Transition from Payment Devices to a Payments Platform
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How smart banks and acquirers are getting ahead of the next wave of payment innovation
The payments world in Asia Pacific has hit a turning point. Banks and acquirers are shifting toward platforms that can keep up with the rapid pace of change. This isn't just about upgrading technology. It's about staying relevant as competition becomes fiercer every day.
Payment Diversity is Your Competitive Advantage
Digital wallets handle about half of all in-store transactions across APAC, but here's what makes this region fascinating: every market is different, and that's actually good news if you know how to use it.
In Singapore, people still prefer credit cards 37% of the time versus digital wallets at 22%. In New Zealand, debit cards are the most widely used payment method, alongside credit cards, with digital wallets accounting for just 11%. Japan? Cash remains king in stores, even as digital payments continue to grow online.
The banks winning aren't just accepting every payment type. They're using this diversity to attract merchants who need flexibility. If you're offering a platform that handles all these preferences seamlessly, you're capturing more business from merchants operating across multiple countries.
What's Coming Next: Getting Your Timing Right
The next generation of payment methods is arriving faster than expected. Cognitive Market Research predicts that biometric payments valued at $2063 million in 2024, will see a phenomenal 20% compound annual growth rate from 2025 to 2033.
Biometric payments are going mainstream. Banks are already piloting fingerprint and face recognition at checkout. Early movers are establishing themselves as leaders in innovation.
Cryptocurrency is becoming practical. Merchants are genuinely interested in accepting crypto, especially those with international customers. With regulations settling down, 2025 appears to be the year institutions will make their move.
Buy now, pay later (BNPL) is moving in-store. BNPL was online-only, but savvy acquirers are already building partnerships to offer integrated BNPL at the point of sale.
The Revenue Opportunity Most Banks Are Missing
Traditional payment setups limit you to transaction fees. Platforms unlock revenue streams that many banks haven't explored.
Digital receipts, loyalty programs, and real-time analytics become services that you can charge for, rather than costly add-ons. The data flowing through your platform becomes business intelligence you can sell back to merchants. Android-based platforms let you broker deals between merchants and service providers, creating revenue-sharing opportunities.
The banks making the most money per merchant? They're treating payments as the foundation of a complete business platform, not just transaction processing.
The Real Challenges
What this transition involves:
- Legacy systems are complicated. Most banks underestimate the integration work needed for existing merchant relationships. Successful transitions happen in phases with clear wins at each step.
- Merchants need training. More flexibility means more complexity. Banks that invest in proper training and ongoing support experience smoother rollouts.
- Compliance varies everywhere. Every APAC market has different rules for payment data and cross-border processing. Your platform needs to have built-in flexibility.
Who's Best Positioned to Win
Regional banks can offer localized experiences that global players struggle to match. Understanding unique local preferences creates advantages that big players can't replicate. Large acquirers have the resources to build comprehensive platform ecosystems. But you need to move fast, as fintech partnerships are disrupting traditional advantages. Challenger banks can skip legacy baggage and launch platform-first solutions for underserved merchant segments.
What You Should Do Now
Three things matter most:
- Focus on complex merchants first. Start with multi-location retailers, cross-border businesses, and high-volume establishments. They see benefits immediately and become your best advocates.
- Build partnerships early. The most successful platforms involve strategic alliances with complementary services. These relationships become competitive advantages that are harder to replicate.
- Treat data as a product. The biggest revenue opportunity is transforming payment data into insights that help merchants operate more efficiently, not just transaction processing.
The Bottom Line
Moving to payment platforms isn't about technology. It's about becoming the kind of partner merchants can't imagine running without. Banks making this shift strategically are building advantages that compound over time.
Platform-based solutions will dominate APAC. The question is whether you'll lead this change or scramble to catch up. The opportunity is here, but windows don't stay open forever.
Ingenico's AXIUM platform helps financial institutions capitalize on these opportunities. Want to explore how platform-based solutions can strengthen your position? Let's talk.
