4 payments leaders lay out how markets like China and Indonesia offer a peek into how US consumers will shop and pay in the future

• We asked four payments leaders how trends in regions like China impact strategies in the US.
• From QR code payments to livestreamed shopping, trends in Asia offer a peek into the future of payments.
• Because of their work, Insider named these experts to our annual list of the 10 leaders transforming finance.
• Visit Insider's Transforming Business homepage for more stories.

Around the world, every region and market has its own nuances when it comes to the way consumers shop and pay. In some regions, credit cards are the go-to option while in others consumers pay primarily by scanning codes with their smartphones.

For global payments companies, keeping up with the global trends and habits is key as product strategies in one country often serve as roadmaps for others.

"The variety in every market is where our global reach and scale comes in handy," Mark Britto, chief product officer at PayPal, told Insider. "While each market has unique needs, there are also a lot of similarities."

The shift toward digital, for one, was one impact of the coronavirus pandemic that impacted markets all over the world. Consumers and merchants, in an effort to avoid touching cash and keypads, adopted more touch-free digital ways to pay.

Some of those payments options, like QR codes, are already popular in markets like China. Now, PayPal is rolling them out in the US, too.

"We can test and learn in one market and more easily expand that product to different markets without having to create a go-to-market strategy from the ground up," Britto said.

Here's how four payments experts are applying learnings across various markets.

QR codes and mobile wallets are catching on

In the US, a market historically dominated by credit and debit cards, consumers are adopting digital wallets, which were already very popular in markets like China. Many markets in Asia are "mobile first," meaning consumers had access to smartphones before they had access to bank accounts and other financial products. And that's led to rapid adoption of mobile wallets.

"In recent years, digital wallets have grown at a rapid rate to more than 150 providers across the region," Ari Sarker, co-president of Asia Pacific at Mastercard, told Insider. "Southeast Asia is a particular growth area."

In Indonesia, there are nearly 50 different mobile wallet providers competing in the market, Sarker added. And more than 25% of consumers use mobile wallets in Malaysia, the Philippines, Thailand, and Singapore, according to Mastercard. And in China, 56% of the population uses mobile payments, according to eMarketer.

Now, they're starting to catch on in the US. But in 2020, 31% of US consumers were using mobile wallets like Apple Pay and Google Pay, according to eMarketer. And that number is expected to grow to 37% by 2024.

QR codes, also popular in China, are growing in the US. In 2020, consumers started using QR codes in restaurants to look at menus and place orders. Now, companies like PayPal are offering QR codes as a way to pay in-store at retailers like CVS. Time will tell whether consumers' use of QR codes will stick.

"In the US, while we've seen significant traction of QR Codes among consumers, there is still a great deal of education and familiarity that needs to happen before we can expect to see it become fully mainstream," PayPal's Britto said.

Livestreamed shopping, popular in China, is also growing

Another global trend that's starting to catch on in the US is livestreamed shopping, where influencers and brands sell to consumers via social media platforms, offering seamless in-app purchasing.

"Live shopping is also growing in popularity, where consumers can be reached online in a more direct and personal way through live streaming services, social media, celebrities and influencers," Camilla Giesecke, chief expansion officer at Klarna, told Insider.

"While the livestream market in China is expected to hit $125 billion this year, there is a lot of untapped potential for this service in Europe and the US," Giesecke said.

Klarna, the buy now, pay later fintech, has worked with retailers in the US and Sweden on live shopping events. And experts expect the opportunity in live shopping to keep growing.

Even the as-seen-on-TV giant QVC is leaning in, investing in its digital platforms and trying to reach consumers outside of its well-known TV channels. There are also startups like Spin, built specifically for live commerce.

Remote work means new cross-border payments use cases

Many workers moved home as remote work became the new normal, which in some cases meant to different countries. Now, after a year of effective results, many companies are adopting hybrid models and allowing employees to stay based in multiple locations.

In markets where lockdowns have been lifted, like Hong Kong and Australia, companies are now experimenting with hybrid working models. And it's likely that US-based companies will follow suit.

One challenge that comes from that flexibility is a dispersed workforce, which makes day-to-day operations like expense management a challenge, especially across borders.

In response to these new working norms, Airwallex, a small business banking fintech based in Australia, launched a multi-currency virtual card product to help companies manage their cross-border spend.

"To help businesses manage cash flow and expenses for a more remote workforce, we launched our multi-currency Visa virtual cards, first in Australia and then the UK," Lucy Liu, co-founder and president at Airwallex, told Insider. Airwallex has plans to roll out these FX-enabled cards across Asia, too.

The offering allows employers to create virtual cards for employees based internationally for business spending, and streamlines expense tracking and foreign exchange.

"The solution also allows businesses to create individual virtual cards for employee expenses. Staff are empowered to make their own purchasing decisions, while managers stay in control with visibility over spend and real-time transactions," Liu said.