What: In Asia, payments by QR codes become ubiquitous.

Why it is important: Soon, Western retailers will need to catch the train in order to remain up to date with tourists from this region.

Juniper Research forecasts a significant increase in QR code payment volume in Southeast Asia, from 13 billion transactions in 2023 to 90 billion by 2028. This growth is attributed to the financial inclusivity QR payments offer, especially for unbanked consumers. Southeast Asian countries, including Vietnam, Thailand, Singapore, Malaysia, and the Philippines, are focusing on enabling cross-border QR payments to revitalize their economies post-Covid-19.

QR code payments are favored for their convenience and adaptability to contactless trends accelerated by the pandemic. However, larger-scale deployment raises issues of transparency, accuracy, and network stability.

Originally developed in Japan for the automotive industry, QR codes have evolved into a popular payment method, especially in China and India. In Southeast Asia, direct arrangements between central bank systems are replacing third-party services for foreign payments, promoting fee-free transactions and favorable conversion rates.

Each country in the initiative has its own national QR code system, such as NETS in Singapore and PromptPay in Thailand. The agreement, which aims to bypass the US dollar in transactions, reflects the region's fintech ambitions and adapts to global economic shifts.

Beyond Southeast Asia, cross-border QR payment systems are emerging in other parts of Asia-Pacific, like between Nepal and India. Global payment giants like Visa, Mastercard, and Google Pay are also showing interest in cross-border QR payments, although uptake in Western markets remains limited compared to digital/mobile wallets and card-based payments. However, with increasing travel from Southeast Asia, Western markets may soon embrace QR payment methods more widely.

What retailers need to know about the rise of QR code payments in SEA