Southeast Asia’s digital economy is projected to reach US$1 trillion by 2030, and could approach US$2 trillion if regional integration and real-time payments become more interconnected. The study identifies AI, programmable finance, and increasingly accessible instant payments as the three main drivers of growth.
This finding comes from the Digital Frontiers 2030 study, which outlines how key technologies are accelerating Southeast Asia’s digital economy.
Developed by HSBC and Google Cloud in collaboration with Payments and Commerce Market Intelligence (PCMI), the report is based on a survey of 2,436 respondents across Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines, conducted between December 2024 and May 2025.
Digital Entrepreneurs as the Main Growth Engine
The report identifies 75 million digital entrepreneurs—including online sellers, content creators, and gig workers—who now contribute 58% of ASEAN’s digital economy. Their activities are projected to generate:
- US$175 billion in transactions by 2025
- US$580 billion in transactions by 2030
A majority (61%) are under 35, and nearly two-thirds run digital businesses outside their primary jobs. This group is emerging as a new driver of growth, expanding the region’s digital economy across borders.
Shifting Consumer Behavior
Changes in transaction habits are accelerating the digital economy. The report notes that:
- 77% of ASEAN consumers use embedded finance, such as digital wallets and Buy Now Pay Later (BNPL).
- Speed (67%) is the top factor in payment choice.
- Security (57%) ranks second.
Account-to-account (A2A) payments have surpassed card transactions since 2022. The fast-payment model is growing 12% annually, compared to 8% annual growth for card-based payments.
Its economic value has already exceeded US$100 billion, driven by cost reductions, faster settlement, and broader financial inclusion.
A New Era: Intelligent Finance and AI Agents
Programmable finance is becoming the core of the next wave of financial transformation. This concept embeds built-in logic into money and assets, enabling automatic payments once conditions are met, instant contract execution upon verification, or loan adjustments that follow a business’s cash flow.
Across the region, various initiatives are laying the foundation for this shift. Singapore’s Project Orchid is developing programmable digital money, while Project Nexus connects real-time payment systems across countries.
The distribution of financial services is entering a smarter phase. Consumers now expect systems that can personalize services, anticipate needs, and execute automatically. Surveys indicate that “AI-powered financial automation” is one of the most desired digital banking features (38%).
This evolution is also giving rise to agentic commerce, an ecosystem where AI agents can autonomously conduct transactions on behalf of users. Google Cloud has developed the Agent Payments Protocol in collaboration with more than 60 global and regional companies, including Lazada, Zalora, Razer, Garena, Mastercard, PayPal, and American Express.
The protocol ensures a clear audit trail from intent to payment, maintaining proper authorization even when transactions are completed by bots.
Singapore Leads the Region’s Digital Innovation
Singapore continues to strengthen its position as the region's leader in digital financial innovation. The country attracted S$192 billion (US$142 billion) in foreign investment in 2024 and is home to more than 4,500 startups, including 1,600 fintechs, supported by over 400 venture capital firms and more than 40 innovation labs.
Initiatives such as Purpose-Bound Money and trials of programmable digital dollars in areas like escrow, supplier financing, and automated rewards illustrate how these emerging technologies are expected to see widespread adoption across financial services.
