Glocalisation in Fintech: Chinese Digital Wallets Conquering Southeast Asia

Southeast Asia is experiencing a digital payment revolution. With smartphone adoption surging and government-backed digital ID systems enabling secure, seamless transactions, the region has become a global hotspot for mobile wallets.

In 2024, the mobile payment market reached USD215 billion in Southeast Asia, having grown at a 25% value CAGR over 2019-2024

^{Source: Euromonitor International}

Digital wallets now rule Southeast Asia

Digital wallets is one of the preferred payment methods in the region, especially in emerging markets such as Indonesia. In 2025, digital wallet was chosen by eight in 10 consumers in Indonesia as the preferred payment type, ahead of bank account transfer, and credit or debit card.Other than convenience and increased security, the popularity of digital wallets is largely due to the large portion of unbanked and underserved consumers and merchants in the key emerging markets. For example, 49% of Indonesia’s population aged 15+ years were unbanked in 2024, and 35% underserved.

Super-apps like Grab and GoTo have leveraged their massive user bases to embed digital wallets, accelerating cashless adoption. These present a massive opportunity, but also a complex challenge to Chinese digital wallets.

Chinese tourist-centric strategies: The limits of expansion

Chinese digital wallets, including AliPay and WeChat Pay, entered Southeast Asia in 2015, focusing on Chinese inbound tourists. Their presence is strong in airports, shopping malls, convenience stores and attractions. However, local adoption has stagnated, due to fierce competition from local players and limited merchant acquisition in non-tourist areas. Following China’s 2023 reopening, Ant International and Tencent partnered with foreign card operators, allowing travellers to link cards for digital wallet payments in China. However, these wallets still function primarily as cross-border tools rather than everyday lifestyle payment tools for locals.

Ant International’s glocalisation strategy: Investment-backed partnerships to lead 

Ant International has sought to rewrite the rulebook. Recognising the challenges of direct competition in the B2C market, it shifted strategy to invest in local wallets to build a regional ecosystem to enable embedded finance services. Through equity stakes in local wallets, including GCash (first ranked digital wallet in Philippines) and Touch ‘n Go (first ranked digital wallet in Malaysia), Ant embedded itself into the region’s top fintech platforms, competing behind the scene.

The launch of AliPay+ in 2021 turned AliPay’s network into a shared network among partners. It enabled cross-border QR payments across partner wallets, transforming rivals into allies. This allowed local wallets to expand internationally, so that Southeast Asian travellers can pay with their domestic digital wallet in popular destination markets, including Japan. This eased the challenges of Southeast Asia digital wallets in acquiring overseas merchants.

Beyond payments, Ant International also introduced a suite of embedded finance solutions, including AliPay+ Rewards and ANEXT Bank for SME digital lending, and merchant services via 2C2P. For example, Touch ‘n Go users can now redeem rewards at overseas merchants acquired by Ant International, enhancing user stickiness and cross-border appeal. This multi-pronged approach has positioned Ant International not just as a payment provider, but as a regional fintech enabler, embedding itself in Southeast Asia’s financial ecosystem.

Central bank initiatives and local rivals: The dual challenge

Central banks in Southeast Asia are pushing for payment interoperability in the region and beyond, supporting cross-border transactions.  These includes QR payment linkage partnerships between Cambodia and Japan announced in July 2025, and that between Indonesia and China beginning in August 2025. While this reduces AliPay+’s exclusivity, Ant has responded by acquiring more merchants to complement central banks’ initiatives in financial inclusion.

Meanwhile, local players are gaining ground. ShopeePay, rebranded from AirPay, is leveraging Shopee’s e-commerce dominance in the region to expand from online to offline. Its partnerships with McDonald’s and Jollibee, combined with aggressive cashback promotions, are challenging Ant-backed wallets like GCash.

Global card networks are also entering the fray. Mastercard’s Pay Local links cards to wallets like Dana and Touch ‘n Go, enabling cardholders to pay at small to medium enterprises (SMEs) and micro-SMEs (MSMEs) without card POS terminals. These alliances help local players defend against Chinese tech giants.

What’s next: Embedding into everyday life

The future of digital wallets in Southeast Asia lies in deep lifestyle integration. Players that embed payments into daily routine (across foodservice, retail, travel, healthcare and mobility) will lead the next wave. Ant International’s success will depend on how well it can support its partners in this fintech race.

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