Southeast Asia is undergoing a cashless revolution. Digital wallets are transforming how people transact, both online and in stores, while expanding access to financial services to millions of new consumers.

For banks and non-bank players alike, this shift represents both a growth opportunity and a strategic test. Those able to move quickly in this fast-growing digital payments market can capture new revenue streams, attract new customers and deepen loyalty.

Achieving this, however, requires the right technology – cloud-native and flexible – to launch and scale future-ready wallet solutions that meet the evolving needs of today’s consumers.

Cashless opportunity

Digital wallets are redefining the payments landscape by enabling consumers to store, send, and spend money directly from their mobile phones - without the need for a traditional bank account.

Demand for digital wallets among today’s mobile-first consumers is only accelerating. By 2029, an estimated 67% of the world’s population will use digital wallets, up from 52.6% in 2024. Over the same period, digital transaction value is expected to double, reaching US$17.11 trillion.

Southeast Asia is leading this cashless revolution, driven by high smartphone usage and the region’s push for financial inclusion. In a region where 85% of adults are underbanked, equivalent to around 300 million individuals, digital wallets have the potential to add millions of new consumers to the region’s digital economy.

But their potential extends far beyond simple payments. Digital wallets can offer a myriad of additional features, such as promotions, rewards and loyalty programmes, which can help businesses to win new customers and build long-term loyalty.  

Their relative ease of use and functionality make them ideal for non-bank players – retailers, telcos and e-commerce platforms – looking to establish a financial services offering and move into new customer segments. 

Cloud-first strategy, cashless future    

New opportunities demand new solutions. While the business opportunity may be clear, creating a new digital wallet that integrates seamlessly into a company’s existing digital platforms requires next-gen technology infrastructure and capability.

Companies face the question: do we build or buy? Building a new wallet from the ground up can take months or even years and demand extensive resources and technical capabilities. In contrast, adopting a cloud-based, software-as-a-service digital wallet solution can dramatically reduce time to market.

By using a new ‘composable’ architectural model, companies can also configure only the capabilities they want and deliver tailored, flexible wallets that meet their specific business needs. These cloud-native solutions also enable seamless integration with existing digital platforms to create fast, convenient and secure payment experiences.

Path forward

Across Southeast Asia, digital wallets are already driving business growth in sectors ranging from retail to telcos and cryptocurrency. For consumers, they bring financial empowerment and fast and convenient digital payments.    

For new entrants seeking to quickly build and scale their financial services offering, cloud-based solutions represent the most effective way forward. The question is no longer whether to build or buy.

The real question is: how will you harness cloud-native technology to supercharge customer experiences and take the lead in Southeast Asia’s cashless revolution?

David Becker is the head of Asia-Pacific at Mambu, a software-as-a-service cloud banking platform enabling banks, lenders, fintechs, retailers and other organizations to design and launch modern financial products.