Hong Kong Emerges as Digital Launchpad for APAC Payments

The rapid advancement in payment innovations across the Asia-Pacific (APAC) region is transforming the digital commerce landscape.

But those advancements, including digital wallets and digital payment methods, aren’t uniform or one-size-fits all.

“APAC is a very vast and diverse market,” Raymond Cui, country manager for China at Nuvei, told PYMNTS. “It includes mature markets like Japan and Korea, developing markets like mainland China and emerging markets like Indonesia and Thailand. This diversity presents a unique challenge for payment companies entering the region.”

Trends such as cross-border shopping, mobile commerce and innovative payment solutions are reshaping the market, presenting both opportunities and challenges for businesses.

At the same time, APAC’s payment landscape starkly contrasts with that of North America and Europe. For example, in China, cash is nearly obsolete.

“It’s already a cashless market,” Cui said of the country. “Alipay and WeChat Pay dominate, alongside other wallets. Credit cards still exist and are growing, but at a slower rate compared to digital wallets.”

In Hong Kong specifically, digital payment giants like Alipay HK, WeChat Pay HK and Octopus are leading the market. Meanwhile, in Japan, offline-to-online payment methods such as Konbini (convenience store payments), PayPay and AU Pay are gaining traction, particularly among younger consumers.

“All these payment methods combined contribute to the growth of the entire APAC market,” said Cui.

APAC Complexity and Opportunity

At the heart of APAC’s payment ecosystem lies Hong Kong — a crucial hub for eCommerce expansion into China and the broader region. Hong Kong’s location, zero-tariff policy and world-class digital infrastructure make it a prime hub for cross-border eCommerce.

“Cross-border eCommerce accounts for 55% of Hong Kong’s total online sales,” said Cui, adding that for businesses eyeing expansion into China or other APAC markets, Hong Kong offers a low-risk entry point with strong logistics and financial infrastructure.

“Leveraging Hong Kong allows businesses to efficiently manage cross-border payments and regulatory requirements while tapping into one of the world’s fastest-growing eCommerce markets,” he said.

After all, with such a diverse market, regulatory compliance becomes a critical concern for businesses looking to expand.

“We maintain a very strong commitment to compliance across the whole APAC market,” Cui said. “In Singapore, we obtained the NPI license, which allows us to provide international money transfers, direct card payouts and local card acquiring. In Hong Kong, we operate under the MSO license and comply with Hong Kong Customs’ regulatory framework.”

Beyond compliance, Nuvei is also investing in fraud prevention to serve up better payments innovations across APAC.

Future of APAC Payments

With digital payments gaining ground and regulations, APAC remains one of the most lucrative yet challenging regions for payments innovation. Companies that successfully navigate its complexities by leveraging technology, forming local partnerships, and maintaining compliance could find themselves well positioned for long-term success.

“APAC presents a huge opportunity,” Cui said. “We [at Nuvei] are committed to expanding our footprint and helping merchants navigate this dynamic and exciting market.

“We recently acquired a company called Payer in Japan and another company called Two Payments in Australia. These acquisitions strengthen our ability to serve APAC-based merchants,” he added.

Additionally, the company is leveraging its 20-plus years of experience from North America and Europe to accelerate growth in APAC. As digital wallet adoption accelerates and AI-driven compliance tools mature, the future of payments in APAC looks increasingly seamless. And for companies like Nuvei, Hong Kong remains the key gateway to unlocking the region’s vast potential.