The push for cross-border payment interoperability across the Association of Southeast Asian Nations (ASEAN) is reshaping financial access for millions of unbanked and underbanked individuals, as well as small and medium-sized enterprises (SMEs) that form the backbone of the region's travel and tourism supply chain. From tour operators in Bangkok to hoteliers in Bali, the ability to send and receive payments seamlessly across borders is becoming a critical enabler of economic participation.
Infrastructure as the Foundation for Inclusion
Dr. Otgonbayar Uuye, Head of AI and Co-Founder of AND Global, a leading fintech infrastructure company in Southeast Asia, underscored the importance of scalable digital infrastructure in reducing barriers to affordable financial services. "Interoperable payment systems and cross-border payment connectivity are emerging as critical building blocks for financial inclusion in Southeast Asia," he said. This infrastructure is essential for enabling economic participation among consumers and small enterprises, particularly those serving the travel industry, such as local guides, boutique accommodations, and independent transport providers.
AND Global, which secured $21.4 million (£16.5 million) in Series B funding last year, is focusing on AI-powered lending and financial inclusion. The company aims to extend the benefits of digital finance to underserved communities, many of which rely on tourism-related income. By leveraging AI-driven credit scoring and risk assessment tools, AND Global can expand access to financing for individuals and SMEs with limited traditional credit histories—a common challenge for small travel businesses in emerging markets.
Real-Time Payments and Cloud Banking for Travel SMEs
Cloud-based banking platforms and real-time payment networks are helping financial institutions serve customers more efficiently and at reduced cost. For travel professionals, this means faster settlement times for bookings, lower transaction fees, and improved cash flow management. For example, a small tour operator in Chiang Mai can now receive payments from a travel agent in Singapore within seconds, rather than waiting days for traditional bank transfers.
The emphasis on infrastructure investment over consumer-facing applications is seen as key to unlocking the next stage of financial inclusion and economic growth. This approach aims to build inclusive digital financial ecosystems across diverse ASEAN markets, ensuring that the benefits of digital finance reach underserved populations at scale. As the region continues to develop its fintech infrastructure, the travel industry stands to gain significantly from more efficient payment systems that reduce friction for both businesses and travelers.
For travel professionals, the implications are clear: as cross-border payment systems become more robust, the ability to serve international customers and manage cross-border transactions will improve. This is particularly relevant for airlines like Bangkok Airways, which is transforming into an integrated aviation services group across three Thai airports, and for cruise lines like StarDream Cruises, which recently slashed fuel surcharges across Asia deployments. Enhanced payment infrastructure can streamline operations and reduce costs for these and other travel companies.
Moreover, the integration of national payment systems aligns with broader trends in the travel industry, such as the rise of multi-brand loyalty programs like Hyatt's Brand Explorer Award, which rewards multi-brand stays across Asia Pacific. Seamless cross-border payments can facilitate such programs by enabling faster and cheaper reward redemptions and cross-border transactions.
As ASEAN continues to prioritize financial inclusion through infrastructure investment, the travel industry should prepare for a more connected and efficient payment ecosystem. This will not only benefit large corporations but also empower the small businesses and entrepreneurs that are vital to the region's tourism economy.
