HSBC and Google Cloud have unveiled the Digital Frontiers 2030 report, forecasting that Southeast Asia’s digital economy could reach US$1t by 2030, potentially doubling to US$2t. This growth is expected to be driven by regional integration and the adoption of real-time payments. The report, developed in collaboration with Payments and Commerce Market Intelligence (PCMI), highlights the transformative impact of programmable money, embedded credit, and AI-driven automation on the region’s financial landscape.
The study identifies four major trends reshaping the digital economy in Southeast Asia. Firstly, digital seller platforms are expanding, with 75 million digital entrepreneurs already contributing US$175b in gross transaction volume, projected to reach US$580b by 2030. Secondly, there is a rising demand for embedded, personalised credit, with 77% of ASEAN consumers using embedded finance solutions like Buy Now Pay Later (BNPL), which is expected to account for 25% of online transactions by 2027.
Additionally, speed and security are crucial for consumer payment choices, with 67% of ASEAN consumers prioritising speed and 57% prioritising security. The report predicts that regional cross-border payment volumes will double by 2030, facilitated by instant payment networks and stablecoin adoption. Lastly, agentic commerce and programmable money are on the horizon, with AI agents poised to manage payments and transactions autonomously.
The report underscores Singapore’s leadership as a financial and innovation hub, ranking first globally in the International Institute for Management Development World Digital Competitiveness Index 2024 and attracting significant foreign direct investment. As ASEAN economies further integrate, the digitalisation of commerce and finance is set to redefine business models and partnerships across the region.
