HK earns spot as launchpad for digital payments in the APAC

Payment innovations such as digital wallets and digital payment methods are growing rapidly in Asia Pacific (APAC), and a report identified Hong Kong as the regional leader in the industry.

The APAC region is a diverse market, with each country having its own nuances and peculiarities. In an interview, Raymond Cui, Nuvei’s country manager in China, disclosed that the diversity in digital payment trends may be challenging for service providers wading into the ecosystem.

Cui noted that a one-size-fits-all approach is not ideal for digital payment firms seeking to set up shop in the region. Cui added that China’s cashless economy and Japan’s offline-to-online payment methods are peculiarities that firms must consider. 

“APAC is a very vast and diverse market,” said Cui. “It includes mature markets like Japan and Korea, developing markets like mainland China and emerging markets like Indonesia and Thailand.”

However, Cui notes that Hong Kong offers a leeway for digital payments service providers looking to enter the APAC region. Per Cui, Hong Kong is perfectly positioned to serve as a launchpad for intending service providers, given its location and array of positive government policies.

Hong Kong’s proximity to mainland China and the rest of the APAC region, in addition to zero tariffs and ultra-modern financial infrastructure, makes it a “prime hub” for digital payments transactions. Furthermore, the spike in cross-border e-commerce in Hong Kong provides a ready market for digital payment companies entering the region.

“Leveraging Hong Kong allows businesses to efficiently manage cross-border payments and regulatory requirements while tapping into one of the world’s fastest-growing eCommerce markets,” said Sui.

Other countries in the region are increasing their footprint for digital payments, with Thailand and Indonesia racking up wins. China, Japan, and South Korea are building on their existing wins to lead the pace for the broader APAC region.

Hong Kong’s dominance is not a flash in the pan

Expert says Vietnam’s Resolution 57 will improve emerging technology adoption 

In other news, Vietnam is playing catchup with the first movers in the APAC region in emerging technologies, as a London-based Vietnamese professor remarked that the country must make significant strides in emerging techs like quantum computing. 

Nguyen Xuan Huan shared “Politburo’s Resolution 57-NQ/TW,” a new policy designed to foster rapid advancements in science and technology, integrating next-gen solutions to improve its economy.

According to Professor Huan, several articles in Resolution 57 are poised to position Vietnam as a regional leader in tech. The U.K.-based professor noted that removing liability on economic losses in the course of science experiments will allow researchers to broaden their horizons.

Furthermore, the resolution provides for improved funding for researchers while providing increased autonomy in using research funds. Huan noted that the resolution would reduce typical red tape and bureaucracies associated with accessing funds.

Becoming the industry leader in emerging technology will not be easy for Vietnam, as it faces stiff competition from other Asian countries like Hong Kong, Japan, and Singapore. 

Huan remarked that a tunnel vision approach to semiconductor manufacturing, blockchain, and artificial intelligence (AI) is not the best approach. He urges authorities to explore quantum computing, the Internet of Things (IoT), and Big Data to augment the push to lead APAC.

A slew of recommendations

Besides broadening its horizons to quantum computing and Big Data, Huan recommends a sizable investment in talent development to power the push toward digitization. Huan advises a synergy between universities and emerging technology industries for collaboration and research funding.

Furthermore, increased bilateral relations may help Vietnam, with the country striking key partnerships. Huan urges authorities to allow expatriate scholars to operate as visiting professors while incentivizing Vietnamese intellectuals abroad to contribute to the growing digitization.

The country’s largest city, Ho Chi Minh, is sinking funds for blockchain and AI investment, while previous reports show food sector players in Vietnam lean on blockchain to confirm and verify halal certificates. 

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