How digital payments can transform governments in Asia Pacific

In today’s digital era, the volume of digital payments is soaring, leading to a surge in transactions.

According to Statista, the global digital payments market is projected to reach US$20.37 trillion (S$27.56 trillion) in 2025 and grow at a compound annual growth rate (CAGR) of 15.9 per cent to attain US$36.75 trillion by 2029.

In Asia Pacific, digital payments are poised to surpass cash transactions by 2028.

This rapid growth underscores their importance in the region’s economies and highlights the valuable data that governments can leverage to enhance governance and economic decision-making.

Driving economic strategy

Digital payments data can revolutionise governmental policymaking, transforming challenges into opportunities. However, governments recognise that they cannot fully exploit this data independently and must collaborate with the private sector.

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As the region’s leading payment network, Visa is well-positioned to assist.

Through Visa Government Insight Hub (VHIG), governments can access a wealth of aggregated and anonymised payment data, providing insights to make informed decisions that steer economies towards growth – including promoting tourism, supporting small businesses and large enterprises, and optimising economic planning.

For instance, during the Covid-19 pandemic, Visa teamed up with the Singapore Tourism Board (STB) to generate a report offering payment data insights and recommendations to help businesses enhance their offerings.

This initiative aided small and medium-sized businesses (SMBs) and initiated marketing campaigns to revive tourism.

Similarly, Visa collaborated with the Australian government to create a custom tourism insights dashboard based on VisaNet transaction data.

This tool helps policymakers assess the economic impact of events, understand visitor spending patterns, and make data-driven decisions on zoning, infrastructure, and services.

In Bangladesh, the Ministry of Fisheries and Livestock partnered with the Bangladesh Dairy Farmers’ Association (BDFA), BRAC Bank, and Visa to launch the Smart Farmer’s Card.

This digital payment solution aids rural and unbanked communities in managing transactions more securely and efficiently.

Making public finance more efficient

Payment data can significantly enhance the efficiency of public finance. By leveraging procurement and travel and entertainment (T&E) cards, governments can streamline transactions, reduce manual intervention, and achieve significant cost savings.

Given that public procurement accounts for a hefty six – 19 per cent of the national GDP and involves around US$13 trillion annually in purchasing goods and services from private companies, the potential for efficiency gains is immense.

Payment data also aids urban planning and sustainability efforts. Information on spending location, timeline, amount and consumer demographics helps authorities benchmark cities, understand behaviour patterns, and model future scenarios.

This increased transparency fosters public trust, ensuring that taxpayer funds are effectively utilised across different branches of government.

With comprehensive data at their disposal, governments can make informed decisions to optimise public services and infrastructure, ultimately benefiting society as a whole.

Enhancing security and fraud management

While payment data enables governments to provide better services at lower costs, it also demands rigorous data stewardship.

Governments must adopt multi-layered approaches to fraud detection and risk mitigation to prevent rising fraud and corruption, which can erode trust.

Artificial intelligence (AI) and machine learning (ML) are pivotal in personalising payment experiences and enhancing fraud detection.

Over the past decade, Visa has invested US$3.3 billion in AI and data infrastructure, empowering governments to analyse vast transaction data to detect and prevent complex financial crimes.

From October 2022 to September 2023, Visa’s AI and machine learning technologies prevented US$40 billion in fraudulent activity, nearly double the previous year’s amount.

Robust security measures safeguard government funds, leading to cost savings and improved efficiency.

Conclusion

As governments continue to digitalise payments and services, they can harness actionable insights to create better value and policies that foster growth and enhance citizen well-being.

At Visa, we look forward to more collaborations with governments in Asia Pacific to build smarter and more inclusive economies in the region.

Azrin Anuar Azlina is Head of Visa Government Solutions, Asia Pacific.