The 2025 Global Payments Report by McKinsey reveals significant shifts in the Asia-Pacific (APAC) payments landscape, driven by credit card usage, cross-border payments, and domestic transaction fees. The report outlines how these factors are redefining the region’s financial dynamics amidst a global payments industry valued at $2.5t.
The report highlights a unique trend in APAC, where credit card usage growth is muted compared to global patterns. Whilst corporate card usage saw a modest 3% increase, overall credit card usage remains at 18% in the region, contrasting sharply with the US, where it stands at 51%. This indicates a shift towards alternative payment methods in APAC, as cash usage continues to decline globally.
Cross-border payments present both challenges and opportunities, with the report noting a divergence into regional ecosystems. APAC is witnessing an upward trend in cross-border transactions, facilitated by the development of instant payment infrastructures and interoperability among domestic systems. This fragmentation requires companies to adapt to a future without a single, unified payment system.
Domestic transaction fees in APAC are also evolving, with consumer-side revenues growing whilst commercial revenues decline. The increasing digitalisation of transactions and the availability of new investment options for managing treasury funds are key factors influencing these changes.
As the payments industry remains a crucial part of financial services, generating significant revenue, McKinsey’s report underscores the importance of adaptability and innovation for success in this rapidly changing environment. The insights provided are essential for stakeholders aiming to navigate the complexities of the APAC payments landscape.
