For millions worldwide, sending money across borders is not a matter of convenience, but a vital lifeline. International remittances are a cornerstone of many economies, including the Philippines, which reportedly saw US$38 billion in such transfers in 2024. However, this crucial financial flow has long been plagued by inefficiencies. High costs, slow processing times, and a lack of transparency have been persistent pain points for those relying on traditional remittance channels. Enter Coins.ph, a company aiming to rewrite this narrative by introducing blockchain-based remittance services, a move that promises to enhance financial inclusion but also brings its own set of considerations.
China’s Ant Group has announced the sale of a 4% stake in India’s fintech major Paytm (One97 Communications) for US$242 million. On the surface, this may appear to be a routine portfolio reshuffling. But given the turbulent waters Paytm is navigating and the pattern of prominent exits from its cap table, this transaction speaks volumes about investor sentiment, the state of India’s fintech landscape, and regulatory risk.
Meta plans foray into stablecoins…again
Three years after Diem was shut down, Meta (Facebook) is reportedly exploring the possibility of using stablecoins for cross-border payments. This will potentially come in the form of small cross-border payouts to creators in other regions or remittance services. The key benefit with stablecoins compared with fiat currency is the ability to pay users across different regions without the high costs of traditional payment methods. For instance, integrating stablecoins as a payment method to facilitate small payouts to creators on Instagram can help to reduce fees associated with fiat currency transactions.
Across most Southeast Asian markets, adoption and usage of digital wallets have generally seen an upward trend, in particular driven by the Covid-19 pandemic which saw a dramatic shift away from physical cash. However, according to a recent report from Vietnamese market research firm Decision Lab, that narrative appears to be gradually changing in Vietnam, as local bank-owned fintech apps are gaining popularity at a rapid pace and even starting to outpace well-known fintech platforms such as MoMo and ZaloPay. This is an indication that Vietnamese banks are stepping up to face the challenges from fintech platforms and have been increasingly successful with boosting their digital capabilities to meet the needs and expectations of customers.
The alarming rise of Asian scam centers
Southeast Asia has become the unfortunate epicenter of a booming industry: sophisticated, industrial-scale cyber-enabled fraud. Organized crime syndicates, often originating from China, are leveraging advanced technology and exploiting human vulnerabilities to generate billions of dollars, leaving a trail of devastation in their wake. This is not petty theft; it is a meticulously orchestrated global enterprise with far-reaching consequences.
In a rapidly maturing crypto landscape where legitimacy, compliance, and institutional adoption increasingly shape the market’s future, Ripple’s recent US$4–5 billion bid to acquire Circle – the issuer of USDC stablecoin – appears both opportunistic and telling. While the move may have seemed rational on paper, its failure reveals deeper tensions between old-school crypto ambition and the growing need for institutional credibility.
In a bid to foster responsible innovation in the financial services sector, especially in the field of crypto-assets, the Securities and Exchange Commission (SEC) of the Philippines announced it has opened applications for its SEC Strategic Sandbox (StratBox). With a focus on Crypto-Asset Service Providers (CASPs), the StratBox will provide a controlled environment for CASPs to test and pilot their products, services and business models, while the SEC can benefit from gaining critical insights and data on the risks and opportunities related to crypto-assets. Despite the focus on crypto-asset services, the SEC will also consider applications from entities in other financial sectors. The StratBox initiative has a broader mandate of reshaping securities trading in the Philippines, potentially leading to the introduction of tokenized stocks and bonds.
Thailand is fast emerging as a notable player in Southeast Asia's fintech scene. With a digitally-savvy population, rising smartphone penetration, and strong government support, the country is crafting a robust fintech ecosystem that could underpin its aspirations to become a regional financial hub.
During the months of March and April 2025, India's Unified Payments Interface (UPI) experienced several outages, with the most notable disruption occurring on April 12, when the system was affected for nearly five hours. This marks the longest downtime in recent years. According to the NPCI (National Payments Corporation of India), the developer and operator of UPI, the system previously experienced partial and intermittent outages in March 2025 for 95 minutes and in January 2022 for 187 minutes. A few weeks after the incident, NPCI released a Root Cause Analysis (RCA) report which explained that the April 12 outage was caused by payment service provider (PSP) banks sending an excessive number of ‘Check Transaction Status’ API calls which overwhelmed the system’s capacity and led to instability. The situation worsened when a few PSP banks began sending multiple ‘Check Transaction’ API calls for even older transactions.
Rising identity fraud targets APAC financial services
As Asia Pacific (APAC) accelerates its digital transformation, its financial services sector has become a high-stakes battleground for a new breed of cybercriminals. Identity fraud – once the domain of amateur hackers – has matured into a sophisticated, industrialized operation powered by artificial intelligence, deepfakes, and Fraud-as-a-Service (FaaS) platforms. With APAC’s banks, fintech firms, and trading platforms at the epicenter of this storm, organizations must reimagine security not just as a defense mechanism but as a business-critical enabler of trust.
Financial crime on the rise in the Philippines
During 2024, the Philippines economy continued to demonstrate resilient growth and rapid digital transformation, especially in the financial landscape. Programs such as Bangko Sentral ng Pilipinas (BSP) Paleng-QR PH have been instrumental in bringing more Filipinos into the formal financial system. As such, digital payment adoption is accelerating and is expected to account for 67% of retail transactions in the Philippines in 2024. However, this surge in digital activity has also been accompanied by increasing risk of cybercrime, ranging from account takeover (ATO) fraud to investment scams and phishing attacks. Several initiatives have been launched to improve authentication such as the Philippine national ID (PhilID) and the PhilSys Check, however adoption has been slow. A recent report from regtech firm Tookitaki on the state of financial crime in the Philippines examined the rise in cybercrime, and other threats to the financial sector, driven by macroeconomic trends in the country.
The growing stability risks of DeFi
Tokenized assets, smart contracts, decentralized exchanges (DEXs), stablecoins and new forms of central bank money are examples of the wave of disruption, known as decentralized finance or DeFi, that is gradually but surely altering the financial landscape. Despite its benefits of greater transparency, security and financial inclusion, DeFi poses significant challenges such as market inefficiencies, new forms of information asymmetries and the risk of “cryptoization” (a word coined by the IMF) in emerging markets.
Mastercard paves the way for stablecoin payments
Mastercard’s latest announcement to expand stablecoin usability for everyday payments marks a pivotal moment in the ongoing convergence between traditional financial infrastructure and blockchain-based innovations. By enabling consumers to spend stablecoins through conventional card networks and offering merchants settlement options in stablecoins like USDC, Mastercard is laying down foundational rails for what may soon be a global shift in how value moves.
Kapronasia at Money20/20 Asia 2025
Money20/20 Asia made a vibrant return to Bangkok this year, running from April 22nd to 24th at the Queen Sirikit National Convention Center. As one of the region’s premier fintech events, it brought together regulators, innovators, startups, and established financial institutions under one roof, and Kapronasia was proud to be part of it.
Thailand’s financial landscape is headed for further changes and disruptions with the recent announcement that the Bank of Thailand (BOT) has given the green light to three consortia to launch virtual banking services. The BOT came to its decision following a selection process that ran from March to September 2024, during which five consortium-led applicants vied for the coveted licenses. The three approved applicants were evaluated based on their financial strength, business model and readiness to meet regulatory requirements for operating a digital bank.
The digitalization of micro-small-medium enterprises (MSMEs) has been a trending topic given that MSMEs are the backbone of the economy in most Asian markets. Digital solutions available in the market range from financial services such as working capital loans and digital payments to operational tools including inventory tracking and logistics. However, such digital solutions often face the challenge of not being “localized” enough to address the unique situations of MSMEs in different countries, and different regions within a country.
Despite the advancements in financial technology and digital payments, a large number of small businesses still face difficulties with transacting across borders. At the same time, industry reports, including Mastercard’s Borderless Payments Report, all highlight the growing demand from SMEs for secure, fast, and reliable cross-border payment solutions. According to the 2023 Mastercard report, more than half of SMEs surveyed said that they are doing more international business compared to 2021 and 75% are implementing strategies to expand internationally. The most common concerns and complaints of SMEs are related to the transparency of payments, fraud risk, and delays and fees.
Remittance sector in Asia poised for more growth
Activity in Asia’s remittance market shows no signs of slowing down as a flurry of partnerships and new product launches signal growing interest in the sector. In China, Xoom, the digital remittance subsidiary of PayPal announced a partnership with Tencent to enable Weixin Pay users to receive funds in their Weixin Pay wallets or bank accounts. This collaboration is aimed at providing more options for customers to remit funds to China, in particular customers in the U.S., Canada and Europe which are markets that have high value and volume of remittance outflows to China. Xoom has previously collaborated with Alipay to enable cross-border payments to AliPay users in China, so this new tie up with Weixin Pay will help strengthen Xoom’s presence in China.
In a strategic leap that exemplifies the fusion of global fintech ambition and hyperlocal consumer behavior, Stripe has expanded its partnership with Tencent to enable in-person payments via Weixin Pay (also known as WeChat Pay) on Stripe Terminal across 20 countries. This move is more than a technical integration, it is a bold acknowledgment of how commerce is evolving to accommodate cultural and digital fluidity.
While SME lending in APAC continues to gain pace, we are also witnessing key players making adjustments to their strategic focus and which markets they want to be in. Singapore-based B2B fintech, Aspire, is reportedly sizing down its Indonesia operations as it plans for global expansion, potentially in the US. Aspire’s services are available in 18 markets across Asia Pacific and East Asia, and it offers USD accounts to businesses incorporated in 11 of those markets. It seems many of the businesses using Aspire engage with US-based suppliers or customers, so launching in the US would be the logical next step. Aspire has been bolstering its capabilities in recent years, including a partnership with Singaporean insurtech Singlife and the launch of “Aspire AI”, a suite of AI-powered features that provide real-time analytics and automated financial processes for businesses.
In a significant stride towards regional financial integration, the National Bank of Cambodia (NBC) has officially joined the Regional Payment Connectivity (RPC) initiative. This move not only marks Cambodia’s deepening engagement in ASEAN’s digital financial ecosystem but also underscores the broader ambitions of the bloc to streamline and modernize cross-border payments.
Where are we now with BNPL regulation in Asia
When BNPL (Buy Now, Pay Later) first appeared on the scene, it was viewed as a consumer-friendly alternative to traditional credit, especially in emerging markets where significant portions of the population are unable to access traditional financial services. While the idea of installment payments is not new, the BNPL model promised to benefit consumers by helping them avoid additional interest charges and providing readily available access to a line of credit. Merchants would also stand to gain as BNPL generally encouraged higher value purchases and larger basket sizes. However, after several years of unchecked BNPL expansion, regulators are noticing that the similarities between BNPL and traditional credit are greater than they had seemed at first glance. Consequently, regulators across Asia are stepping in to address issues with consumer protection such as the risk of overspending and getting stuck in debt traps.
This is the fourth and final blog in our series on Digital Asset Custody, in partnership with Ripple. The first blog in the series highlighted the rise of digital assets in Asia Pacific, exploring the opportunities and challenges for custodian banks in this growing space. The second blog explored how strategic partnerships with established technology providers enable custodian banks to efficiently and securely navigate the complexities of digital asset custody. The third blog looked at tokenization use cases and how these are transforming traditional financial assets.
MariBank is the first digital bank in Singapore to offer remittances to both retail and SME customers
In the ever-evolving digital banking space, innovation is not just about sleek apps or cashback cards, it is about anticipating real-world needs and closing the gaps traditional banks often leave wide open. MariBank, a digital bank backed by tech giant Sea Group, has just done exactly that by becoming the first digital bank in Singapore to offer remittance services to both retail and SME customers. With this move, it is not only breaking new ground, it is redefining the role digital banks can play in cross-border finance.
Coinbase announces plans to launch in India…again
Coinbase, the US-based cryptocurrency exchange, recently announced that it has registered with India’s Financial Intelligence Unit (FIU) to launch its crypto trading services in the country. This move is aligned with Coinbase’s plans to expand its global presence, and the company also stated it plans to launch retail services later in 2025.
In a pivotal leap forward for global finance, Nexus Global Payments (NGP) has officially launched, ushering in a new chapter for cross-border transactions. Born from a bold vision seeded by the Bank for International Settlements (BIS) in 2021, what began as a proof-of-concept has now matured into an operational reality. The shift marks not only a technological milestone but a profound transformation in how countries could approach international payments going forward.
A new study conducted by the Cambridge Centre for Alternative Finance (CCAF) and the Asian Development Bank Institute (ADBI) highlighted the important role that digital finance platforms play in enhancing MSME access to finance and supporting their economic growth. The survey covered more than 800 MSME users of digital financial platforms with business operations in emerging and frontier markets such as Bangladesh, China, India, Kazakhstan, Mongolia, Pakistan, and Vietnam.
LankaPay, Sri Lanka’s National Payment Network, has partnered with Ant International to launch Alipay+ in the country. In the first phase of the launch, 14 international digital wallets, which are partnered with Alipay+, will be made available to over 400,000 LANKAQR merchants in Sri Lanka. LANKAQR is the country’s national QR code standard introduced by the Central Bank of Sri Lanka. This partnership comes at an opportune moment as travel to Asia has been gaining momentum and is expected to recover to pre-pandemic levels this year. Tourists and business travelers from China, Mongolia, the Philippines, Singapore, Malaysia, South Korea, Thailand, and Italy will now be able to scan the LANKAQR code and make payments using their preferred home payment app.
The digital banking landscape in Asia has undergone a remarkable transformation, with leading institutions setting new benchmarks in innovation, customer experience, and financial inclusion. The Banker’s 2025 ranking of top digital banks in Asia highlights key players that are redefining the region’s banking sector through cutting-edge technology, strategic partnerships, and a customer-centric approach.
The cryptocurrency market has long operated in a grey area of regulatory oversight, with some jurisdictions embracing digital assets while others impose stringent controls. Thailand, a country known for its proactive stance on financial regulations, recently took a decisive step in reinforcing its digital asset framework. The Thai Securities and Exchange Commission (SEC) has filed a criminal complaint against OKX, a major global cryptocurrency exchange, for operating without a license. The complaint also includes charges against nine individuals accused of promoting the exchange’s unlicensed services. This move marks yet another chapter in Thailand’s ongoing efforts to regulate digital assets and ensure investor protection.
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Sam Altman’s World Network is reportedly in discussions with Visa to integrate stablecoin payments into its self-custody crypto wallet, a move that could significantly impact the evolving intersection of traditional finance and digital assets. If successful, this initiative would allow users to spend stablecoins at any merchant that accepts Visa, effectively bridging the gap between the crypto economy and the mainstream financial system. With stablecoins emerging as a preferred digital asset for payments due to their price stability, this collaboration signals a broader shift toward the adoption of blockchain-based financial services.
Grab's bold move for potential GoTo acquisition
Grab Holdings’ reported attempt to raise a US$2 billion bridge loan for acquiring Indonesian tech giant GoTo Group signals one of the most ambitious consolidation moves in Southeast Asia’s tech landscape. If successful, this merger could reshape the region’s digital economy, creating a dominant player in ride-hailing, food delivery, and fintech. However, the deal faces significant regulatory and financial challenges, making its outcome uncertain.
Exchanges worldwide deepening their involvement in cryptocurrencies and digital assets
Singapore Exchange (SGX), Singapore’s largest exchange group, recently announced plans to launch Bitcoin perpetual futures in the second half of 2025, a move that illustrates the trend of traditional exchanges branching out into crypto derivatives to deepen their involvement in the crypto industry.
Competition in digital banking in Southeast Asia presents opportunities for infrastructure service providers
Competition remains fierce in Southeast Asia’s digital banking market, especially among major brands linked to super-apps such as ride-hailing app Grab (GXS Bank) and Sea Limited (SeaBank and Maribank), which operates the Shopee eCommerce platform and gaming platform Garena. While Revolut and Chime can generally be regarded as the digital banking leaders in Europe and America, respectively, the race for supremacy in digital banking is still hotly contested in Southeast Asia as regulators continue to hand out digital banking licenses to both neobanks and traditional incumbent banks.