FinTech LIVE Singapore: Digital Payments Forum

July 19, 2024

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At FinTech LIVE Singapore, industry experts from Standard Chartered, Home Credit Vietnam and ZALORA Group discuss the rise of digital payments

In today’s hyper-connected world, the rise of digital payments has revolutionised how businesses and consumers interact.

Speaking at FinTech LIVE Singapore, Kashif Khan, Vice President of Transaction Banking, Payments, Channels & Global Banking Technology Service Management at Standard Chartered; Khang Ngoc Pham, Chief Financial Officer at Home Credit Vietnam; and Kannan Rajaratnam, Regional Director of Payments & Customer Operations at ZALORA Group, shed light on the impact of digital payments across multiple sectors and markets.

Digital transformation: The era of mobile payments

As Standard Chartered’s Kashif puts it, “smartphones are not merely devices, it’s a gateway to a customer’s digital universe”, and payments form a significant part of that.

Today, digital mobile payments have introduced an unmatched level of convenience, speech security and ease of completing business.

The shift towards digital transactions has far-reaching implications beyond just payment processing. Kashif notes that "the surrounding ecosystem is also getting heavily digital paperless in terms of all the moving parts which support processing of a transaction or a payment". This transition is driving organisations towards comprehensive digital transformation.

As smartphones have proliferated, becoming more affordable and easily accessible, so too have financial services been able to extend their reach to typically underserved, underbanked areas of society. Digital payments have been at the heart of the drive towards a financially inclusive environment.

“The unbanked and underbanked population in many regions who did not have access to the basic financial services can now become an inclusive part of the banked population and can now have access to the basic banking services,” Kashif continues.

Home Credit Vietnam’s Khang Ngoc Pham emphasises the extent to which digital financial services have expanded the reach of equitable financial inclusion efforts.

He says: “It's taking what we do offline to the next level online with digital payments being the key way to connect with customers more seamlessly. He stressed the importance of education and responsible implementation, especially in emerging markets like Vietnam.

"These digital payments services are faster, cheaper, safer and more transparent, but they also put different financial products in users' hands, thus providing greater education.”

For Pham, implementing digital payments technology must be done responsibly today – to best meet the needs of consumers, particularly in emerging markets where educating the underserved is of increased importance.

Digital Payments Forum

Digital payments: Growing alongside the e-commerce space

Indeed, the growth of digital payments has already married to an ever-expanding e-commerce market.

ZALORA Group’s Kannan Rajaratnam has seen how digital payments have evolved alongside an increased preference from consumers to shop via e-commerce channels.

He highlights two main drivers of digitalisation in this shared space: “One is convenience and the other one would is lower costs.”

He went on to praise the efforts of central banks in driving down costs and fostering innovation, which has led to the widespread adoption of various digital payment methods across the region.

Of course, the benefits of digital payments today extend beyond convenience and cost-effectiveness alone.

Pham highlights the valuable data insights digital transactions provide: “As you develop that relationship and you get more knowledge about how consumers and businesses pay and transact, as a financial services provider, you can be more personalised in your communication and the products and services you offer.”

This data-driven approach allows businesses to offer more tailored products and services.

Going further, Rajaratnam points out the operational advantages of e-commerce platforms, noting that digital payments lead to "higher frequency of purchases" and "smaller cancellation" rates compared to cash-on-delivery orders. He also observed that digital payments tend to result in higher average transaction values.

As digital payments continue to evolve, they are reshaping not just financial transactions but entire business models and customer relationships.

Our panellists agree that while challenges remain, particularly in terms of education and adoption in certain regions, the trajectory towards a more digital, connected and inclusive financial ecosystem is clear.