dLocal's Emerging Perspective - February 2025

Welcome to the February issue of Emerging Perspective!

Asia is shaping the future of payments, but no two markets play by the same rules. Payment maturity varies and evolving regulations driven by innovation keep merchants adapting. This month, we break down the forces driving change—eWallets, AI, SuperApps, and policy shifts—alongside key payout challenges in the region and how to overcome them to keep funds moving.

Read on to uncover what’s shaping the payment landscape in Asia. ??

Insights from Yash Yadav, Head of Growth (APAC) at dLocal ??

Asia is home to 60% of the world’s population, but low banking penetration makes local payment solutions a necessity, not a choice. eWallets lead the way, but in Asia, each country requires a distinct approach, what works in one may not in another.

Get payments right, and success will follow. Every local payment method has unique adoption, tech, and settlement rules. Does the one you’re considering support chargebacks? Does it interoperate with others? Does it allow smooth funds repatriation? Even small user experience details matter. Fewer steps can mean higher conversions. One-click or manual entry can make or break a transaction.

To thrive in Asia, consider how fast and easily you can expand across countries, navigate local regulations, and integrate with local payment methods. Managing these challenges well makes all the difference. The right partner can take the heavy lifting off your shoulders so you can focus on growth.

Asia isn’t just keeping up with payment trends, it’s driving them. With the right strategy, the potential here is massive.?

Read on for Asia expansion insights in this edition. ???

?? Navigating Asia's fast-changing payment landscape

Asia’s payment landscape is changing fast. Banking access, mobile adoption, and payment habits vary by country. Businesses that fall behind will struggle to grow.

Key trends in the region:

• eWallet growth: eWallets account for 70% of eCommerce payments (77% by 2027).
• SuperApps & QR payments: All-in-one payment platforms are redefining daily transactions, while QR codes are reshaping how people pay in SEA.
• Industry trends: eCommerce is booming, as young generations embrace new payment methods. Remittances are growing with currency volatility and emerging economies. Travel, always strong in APAC, keeps accelerating as digital bookings rise.

Handling regional dynamics?

Each Asian market has its approach to regulation, capital flow, and security, shaping how businesses operate. In Indonesia, foreign companies often need a local partner, while Vietnam mandates a local entity for entry. Capital movement policies vary, with India limiting foreign transfers, or Malaysia imposing regulations that affect capital movement. Meanwhile, new security frameworks, like Thailand’s tokenization initiatives, are redefining compliance standards.

The road ahead

More AI-driven solutions, more government-backed cashless initiatives, and more innovation: this is the future of Asia’s payments. As regulations tighten and payment methods diversify, international businesses must align with local infrastructure. Success will depend on working with local experts who understand each market’s nuances.

Explore payments in Asia

Overcoming payout barriers in Asia ??

Cross-border payouts in Asia are shaped by country-specific regulations, capital controls, and banking infrastructure. While India’s UPI enables real-time bulk disbursements, others impose FX controls and limits. Japan’s Zengin and the Philippines’ Pesonet, for example, have different SLAs.

Foreign businesses face steep tax burdens few anticipate. These and other restrictions impact industries reliant on frequent payouts, such as ride-hailing, where drivers need their earnings to stay on the road.?

One way international businesses navigate Pakistan’s restrictions is by integrating with EasyPaisa and JazzCash through approved providers, as direct access isn’t open to all. These eWallets enable real-time settlements and wallet top-ups, crucial for high-frequency payouts like driver earnings. As regulations shift in this market, understanding fund settlement timelines and the experience for payout recipients is essential when choosing a provider.?

Further regulations are tightening across the region. Thailand’s AMLA is enforcing stricter compliance, while Indonesia is capping offshore remittances above a certain threshold without supporting documentation.

In Asia, fast payouts aren’t enough. Payout limits vary by country, payment method, and direct debit rails. You need regulatory expertise, FX risk management, and the right local partners to navigate shifting policies.

Asia payouts in action

Monthly highlights ??

dLocal Connect 2025

This month, we gathered top companies and executives to discuss global money movement in emerging markets at our annual flagship event, dLocal Connect, in Riviera Maya. Stay tuned for all the highlights in our next issue.

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The much-anticipated launch of Pix Automático in June 2025 is set to introduce pre-authorized recurring payments, eliminating manual approvals, reducing payment failures, and reshaping the future of global businesses. Get set up and ready to explore this game-changing innovation.

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Want to talk more about cross-border payments in emerging markets? Get in touch, and we’ll be happy to chat with you!