Digital payments reshape remittances in Asia Pacific, study shows

By Divya Shah

Digital cross-border payments continue to gain momentum across Asia Pacific, creating new opportunities for banks, remittance providers and FinTech firms to enhance customer experiences. According to Visa’s Money Travels: 2026 Digital Remittances Adoption study, consumers across the region are increasingly embracing digital channels for international money transfers while placing greater importance on security, transparency and trust.

The study, which surveyed over 45,000 remittance senders and recipients across 20 markets including Australia, China, India, Japan, the Philippines and Singapore, found that remittances remain a critical financial lifeline for millions of households.

Beyond supporting family members abroad, consumers increasingly rely on cross-border transfers to cover household expenses, manage day-to-day financial needs and respond to emergencies.

The research highlights differences in remittance activity across Asia Pacific. The Philippines recorded the highest proportion of both senders and receivers, with 45% of consumers reporting remittance activity.

Australia also reported strong outbound payment activity, with 35% of respondents sending money internationally. By contrast, Japan recorded some of the lowest levels of engagement in cross-border money movement.

In key emerging markets such as India and the Philippines, remittances continue to play an important role in covering household bills and addressing unexpected financial emergencies.

The study also points to the personal sacrifices many consumers make to support family members overseas. In India and China, a notable share of respondents reported delaying bill payments or reducing spending on essential items in order to send money abroad.

The shift towards digital remittance channels continues to accelerate across the region. Mobile banking applications are now the preferred method for international money transfers in most Asia Pacific markets, reflecting growing consumer demand for convenient and always-on payment services.

Digital wallets are also strengthening their role within the remittance ecosystem. Adoption is particularly strong in India, the Philippines and China, where consumers increasingly favour mobile-first financial services.

For FinTech providers, this trend underscores the importance of delivering seamless user experiences, real-time payment capabilities and greater interoperability across payment networks.

Japan stands out as a regional exception, with nearly one-third of consumers still preferring to initiate international transfers through physical bank branches, highlighting the continued relevance of traditional banking channels in certain markets.

As digital remittances become more widespread, concerns around fraud and security are growing. The study found that exposure to remittance-related scams is highest in India and the Philippines, prompting consumers to place greater emphasis on payment protection measures.

Artificial intelligence-driven fraud is becoming a particular concern. More than half of respondents in India and nearly two-thirds in the Philippines expressed worries about AI-generated scams, including deepfake technologies that could be used to impersonate family members and manipulate payment transactions.

Many consumers are now willing to prioritise security over transaction speed. Respondents in markets such as Japan, Singapore and Australia indicated they would accept longer processing times if it meant benefiting from enhanced AI-powered fraud detection and protection mechanisms.

This shift signals an opportunity for financial institutions and FinTechs to differentiate through trust, security and transparency rather than speed alone.

The study also explored consumer attitudes towards stablecoins for the first time, revealing both growing curiosity and significant educational challenges.

While interest in stablecoins increased when consumers understood their potential benefits and value stability, misconceptions remain widespread. Many respondents continue to view stablecoins as carrying the same level of risk as cryptocurrencies, despite their design being intended to reduce price volatility.

For FinTechs firms exploring blockchain-based payment solutions, the findings suggest that consumer education and trust-building will be essential before stablecoins achieve mainstream adoption in cross-border payments.

The findings reinforce the evolving role of FinTechs in the international payments landscape. As consumer expectations shift beyond speed and convenience towards security, transparency and financial confidence, providers will need to balance innovation with robust risk management.

With digital remittance volumes continuing to grow, FinTechs have an opportunity to develop more integrated cross-border payment ecosystems, combining mobile-first experiences, fraud prevention capabilities and emerging technologies such as stablecoin-enabled settlement.

Those able to deliver trusted and seamless money movement experiences are likely to be best positioned to capture the next phase of growth in Asia Pacific’s expanding remittance market.