Asean builds trust in digital future

As Asean jockeys to be at the heart of the modern digital economy, fostering trust is key to reaping the benefits of growing digitalisation and further empowering the vulnerable segments of the population.

- SATVINDER SINGH THOMAS BELOE

In the bustling streets of Jakarta, 50-year-old Siti (name changed) sits behind her food stall, where the aroma and sizzle of fried rice and grilled satay mingles with the hum of passing motorbikes.

With a range of digital food delivery and e-commerce platforms helping her connect with more customers, business has never been better. While Siti still accepts cash, these digital apps have made it easier for customers to pay, and for Siti to manage her finances and bookkeeping, with a simple tap on her phone.

Siti is just one of 70 million microentrepreneurs driving economic growth in the Association of Southeast Asian Nations.

Over the last two decades, the region has seen its real GDP grow by 5% annually, reaching US$3.8 trillion in 2023, making it the fifth-largest economy globally. With digitalisation empowering microenterprises like Siti's, it is no surprise that Asean's digital economy is poised to reach almost $2 trillion by 2030.

DIGITAL PAYMENT BEDROCK

A foundational piece of this growing digital economy is the proliferation of instant payment systems (IPS) and more recently, the rapid adoption of low-cost national QR payment channels.

From Indonesia's QRIS to Cambodia's KHQR and Thailand's PromptPay, Asean has swiftly adopted the digital way to pay, with the share of digital payments to gross transaction volume already surpassing cash with just 48% in 2022 to about 56% in 2024.

With payments transmitted directly to the merchant's accounts, microenterprises can now easily manage their books, helping them monitor the growth of their business.