In April, Asia’s payments industry descended on Bangkok for Money20/20 Asia, one of the sector’s biggest events, bringing together leaders from across fintech, financial services and policy.
While it is always a key event on the industry calendar, this was a particularly special year. The current US-China trade war and wider macroeconomic environment created a critical backdrop to discussions, while many parts of the industry are seeing strong growth and innovation in the region.
The potential in the region is significant. In a report published by Money20/20 in partnership with my company FXC Intelligence, we shared data that shows that while the Asia-Pacific cross-border payments market totalled $12.8tn in 2024, it is set to reach $23.8tn in 2032. This would see it outgrow global averages, accounting for more than a third of the world’s international payments volume.
Focusing on the future of Asia’s infrastructure, the report surveyed more than 100 fintech experts working across the continent, with findings that not only paint an interesting picture of efforts across the region, but which were reinforced by much of the discussion and wider trends seen at the event and beyond.
Technological innovation is critical to Asia’s cross-border payments development
While industry events in the US typically focus largely on domestic payments, with only specialist parts of the industry focused on cross-border, in Asia it is a far more central focus for many in the industry. Moving money across borders both within Asia and beyond is far more central to a wide range of businesses, and porous borders are playing a key role in economic growth.
However, Asia is extremely diverse in terms of its financial systems, with different countries having very different infrastructure, regulatory frameworks and consumer habits. But it also has a strong track record for fostering innovation, particularly in countries such as Singapore, that is setting it up for transformation, with 93% of those surveyed in the report expecting significant or moderate change to the country’s cross-border payments infrastructure over the next decade.
A central part of this is technology, or more accurately, a range of technologies. Real-time payments systems such as India’s UPI have been critical to increasing financial inclusion over the last decade, but in the next 10 years the focus is shifting outwards, to interlink such systems across the continent. In growing numbers of countries in Asia, paying abroad is becoming as easy and cheap as paying at home, and initiatives such as the Bank for International Settlements’ (BIS) Project Nexus are looking to boost the prevalence and ease of this further.
There is also strong potential in stablecoins, with industry adoption in Asia already more pronounced than it is in the West. Many large companies already use major stablecoins as part of their cross-border payments infrastructure, unlike many of their US counterparts, although banks are still reviewing the technology and waiting to see who moves first.
A key third area, however, is digital wallets. Having already gained a strong foothold across Asia, with companies such as Alipay, WeChat Pay and Grab being key pioneers, the focus is now on making these interoperable and reducing cross-border friction.
These are by no means the only technologies driving innovation in Asia’s payments system. QR codes, central bank digital currencies and even APIs are all also playing a role, and together suggesting a future where no one technology dominates, but where multiple instruments, networks and systems can interoperate seamlessly.
Shifting away from the dollar
Alongside this growing innovation, there is also an increasing focus on moving away from both the US dollar and US dollar institutions, which is also helping to shape development of the financial system.
This has already seen some results, particularly in China. Data on non-bank payments into the country from China’s State Administration of Foreign Exchange indicates a transformation in the currencies used over the last decade. Fifteen years ago in March 2010, 86% were made in US dollars, with less than half a percent in yuan. In March 2025, however, yuan payments had a greater share than the US dollar, at 53% and 43%, respectively.
With such a diverse and fragmented system, there is far more to be done in this area if the region is to fully move away from the dollar, and it remains the default global currency for the foreseeable future. However there are numerous efforts underway, many of which have been accelerated amid the turmoil caused by the US tariffs.
This includes both traditional fiat currency-based solutions and also those in the digital currency space, with several efforts to develop alternatives to the dominant US dollar-based stablecoins USDC and USDT. This has been supported by regulatory activity, including the Hong Kong Monetary Authority’s introduction of its Stablecoins Bill in December 2024 to provide licensing for the technology.
Although still in the process of being passed, its impending implementation has already prompted several initiatives, including a joint venture between Standard Chartered, Web3 player Animoca Brands and telecoms player HKT to issue a Hong Kong dollar-backed stablecoin.
Other projects have also focused on pairing emerging technologies with a reduced reliance on the US dollar, with the BIS’ Project mBridge exploring the development of a multi-central bank digital currency platform between Thailand, China, Hong Kong, the UAE and Saudi Arabia.
Lessons for the rest of the world
Precisely replicating Asia’s initiatives and projects without context is unlikely to yield viable results, but there are lessons to be learned for the rest of the world’s cross-border payments industry.
Interoperability is a growing focus and need globally, and any initiatives in this space are worth watching closely and in many cases interacting with.
The notion that one technology or solution is the only answer to improving the current state of cross-border payments is also worth unpacking. This is particularly common in how many in the US discuss stablecoins, with commentary on the subject often comparing it to old correspondent banking rails and nothing else.
In reality it is one of multiple technologies, alongside card rails and other forms of payments infrastructure, that have potential to combat friction in payments – and the opportunity lies in finding the right interconnected mix, not embracing one solution at the expense of all others.
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