Covid-19 to Give Asia’s Digital Economy Big Boost, Deloitte Says
Dou Shicong
DATE:  Sep 25 2020
/ SOURCE:  Yicai
Covid-19 to Give Asia’s Digital Economy Big Boost, Deloitte Says Covid-19 to Give Asia’s Digital Economy Big Boost, Deloitte Says

(Yicai Global) Sept. 25 -- The expansion of Asia's digital economy, or business and lifestyle carried on through web-based means, has been much spurred by the novel coronavirus pandemic, according to a new report from accountancy firm Deloitte.

Based on contactless services, the digital economy is rapidly expanding from China, Japan and South Korea, where it is more developed, to South and Southeast Asia, where it is less developed, said the report, which was released at the Inclusion Fintech Conference in Shanghai today.

The results of Deloitte's survey show that 78 percent of consumers in countries in South Asia and the Association of Southeast Asian Nations had used digital services more since the contagion emerged. As a result, mobile payment use across Asia will more than triple from last year to 2025, the report said.

E-wallet providers in ASEAN and South Asia are working with leading mobile payment firms in China, Japan and South Korea -- such as Ant Group's Alipay and Kakao's KakaoPay -- to quickly learn and build their own digital payment apps, Deloitte said.

Population age is another major stimulus for the development of the digital economy in ASEAN and South Asia. About 65.4 percent of people in ASEAN and 70.2 percent in South Asia were aged under 40 last year, far exceeding the 46.8 percent in Europe and 52.1 percent in North America, according to demographic statistics last year.

That huge younger base has led to a high degree of smartphone take-up while falling mobile data fees and improved network connectivity have further contributed to the rapid growth of mobile penetration.

Regional differences still exist, however. Indonesia, Singapore and the Philippines are the three most active countries in online retail. Pakistan has the highest proportion of people who have never shopped online and the highest ratio of retail stores that do not support digital payments.

The digital payment markets in ASEAN and South Asia still have broad room for development, Deloitte said. These countries have high mobile phone usage and connectivity rates but relatively low penetration of banks. Fintech companies have huge opportunities to provide affordable and convenient financial services through digital platforms.

Editors: Dou Shicong, Peter Thomas

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Keywords:   Deloitte,Covid-19,Asia,Digital Economy