There is a major transformation underway in Asia’s financial landscape. An accelerated shift towards digital payments and an expanding fintech ecosystem are altering the payment infrastructure, bringing new opportunities and challenges.
PwC predicts that global cashless payment volumes will nearly double from around 1 trillion transactions in 2020 to about 1.9 trillion by 2025. The Asia-Pacific region is set to lead this growth, with cashless transactions projected to increase by 76% between 2025 and 2030[1].
This transformation is fuelled by technological advancement, changing consumer behaviours and regulatory support. As businesses look to tap into this promising market, the integration of robust Know Your Business (KYB) processes—especially those that are fully automated—becomes crucial.
Capitalising on key trends
According to PwC’s Payments 2025 study, 42% of respondents expect a significant increase in cross-border, cross-currency instant payments and B2B transactions by 2025[2].
In recent years, the growth of real-time payments in emerging markets has been significant, with Asian markets often leading the way. Countries like India, China and Thailand have seen exponential increases in the volume of real-time transactions, facilitated by national payment infrastructures that support instantaneous fund transfers at minimal cost[1].
These trends create new opportunities for payment providers. However, as companies expand into new markets across Asia and handle more cross-border transactions, compliance becomes more challenging. With the increase in instant payments, the demand for real-time KYB checks grows, necessitating that payment companies perform these checks swiftly and accurately to prevent fraud and meet regulatory standards in each relevant jurisdiction without compromising transaction speed.
The role of KYB in facilitating market entry
For businesses aiming to establish or expand their presence in Asia, understanding and integrating with local markets is crucial. This is where partnering with a local KYB provider, which offers fully automated solutions, becomes a strategic imperative. Automated KYB processes streamline the due diligence required for business-to-business transactions, ensuring compliance with local regulations while enhancing operational efficiency.
Benefits of partnering with local KYB providers
- Compliance with local regulations:
Local KYB partners are well-versed in managing the diverse regulatory environments of the Asia-Pacific region, ensuring that businesses remain compliant when entering new markets. Above all, local providers have on-the-ground knowledge of who is who, and can quickly help international organisations identify the most relevant local regulatory authorities and registries for their KYB requirements. For example, in Hong Kong, the best registries to use differ depending on the types of companies involved. For organisations new to the market, these nuances can pose significant challenges. - Enhanced speed and efficiency:
Automated KYB solutions provide real-time data processing, reducing the time required for onboarding new clients and partners. This speed is critical in markets where business dynamics change rapidly. Having a pre-integrated solution that connects to authoritative government sources and has already been rigorously tested, will save you hundreds of hours of investigation, development and testing. This significantly reduces time to market and ensures best practices are followed.
- Risk mitigation:
Proper KYB checks help in identifying potential risks related to business relationships and financial transactions, thereby protecting companies against fraud and financial crimes. - Market-specific intelligence:
Local KYB providers possess deep insights into the market and consumer behaviour, offering valuable data that can inform business strategies and decision-making processes.
Success through strategic partnerships
Innovative companies that have entered Asian markets often leverage local partnerships to enhance their KYB processes. By integrating automated KYB solutions, these companies not only ensure compliance and operational efficiency but also gain a competitive edge in fast-paced environments. For instance, a fintech company entering Thailand might partner with a local KYB provider to efficiently navigate the local business landscape, from regulatory compliance to understanding local business networks.
Conclusion
The landscape of digital payments in Asia presents fertile ground for innovation and growth. Partnering with a local, fully automated KYB provider is a key strategy for businesses looking to unlock the region’s potential. This approach provides payment organisations with an expert understanding of the diverse regulatory environments and facilitates accurate, real-time KYB checks and merchant validations. Such capabilities ensure faster and more secure transactions, which are essential for building a competitive edge and winning market share.
Business leaders and decision-makers must therefore prioritise the integration of local knowledge and technological solutions to not just enter, but thrive in, the Asian market. By doing so, they leverage the full spectrum of opportunities presented by the digital transformation in payments across this diverse and dynamic region.
[1] https://www.pwc.com/gx/en/industries/financial-services/publications/emerging-markets-driving-payments.html
[2] https://www.pwc.com/gx/en/industries/financial-services/publications/financial-services-in-2025/payments-in-2025.html
