The digital economy will play a more important role in the region’s future than previously thought, and as more people turn to the Internet to meet their daily needs. The region’s internet economy is growing faster than expected and, according to new data, will reach $360 billion by 2025.
The Future of Technology, its Specification
While e-commerce is leading the digital economy, healthcare, education, and financial technology are the sectors that are growing faster due to COVID-19 and are expected to be a significant part of the digital economy by 2030.
Digital Finance Grows
The report noted «healthy growth» in digital financial services, specifically in the adoption of e-wallets and A2A (account-to-account), fuelled by both merchant adoption and consumer usage.
By 2025, digital payments are forecasted to reach over $1.1 trillion in gross transaction value, up from a forecast of $707 billion in 2021. Digital lending is also expected to grow by 50 percent in outstanding balance from $26 billion in 2020 to $39 billion in 2021, led by a rebound in lending appetite and growth in usage of buy-now-pay-later services.
New Highs for Funding
The digital resurgence has prompted renewed investor interest in tech startups. Some $11.5 billion was invested during the first half of 2021, with 11 consumer technology unicorns added in 2021, taking the total to 23.