Q&A: Mastering payments in APAC: A conversation with Checkout.com’s Brian Sze

Hey there!

Asia-Pacific is at the global epicenter of digital commerce innovation, where the lines between traditional banking and AI-driven transactions are blurring faster than anywhere else.

Joining me today is Brian Sze, General Manager of APAC at Checkout.com, who leads the company's expansion and strategic vision across key hubs including Singapore, Hong Kong, Shanghai, Tokyo, and Sydney. In this conversation, we explore Checkout.com's massive momentum in the region, the technical intricacies of mastering the fragmented APAC payments landscape, and the strategic shift toward an agentic commerce future.

Arthur Bedel: Brian, it’s great to have you. The recent figures for Checkout.com in APAC are quite striking, especially given the global economic climate. How would you describe the momentum you’re seeing right now?

Brian Sze: It has been a landmark year for us. We’ve seen a 71% year over year increase in total processing volume across the APAC region. What’s even more significant is that for the third consecutive year, we’ve delivered more than 50% year over year net revenue growth.

This momentum is powered by two things: a greater share of wallet from our existing partners and a massive wave of new enterprise merchants choosing our platform to scale globally.

We are now processing for some of the most renowned brands in the region, including Alibaba, Trip.com, Temu, SHEIN, JD, Heytea, and NetEase. We’ve specifically seen rapid acceleration in marketplaces, digital goods, travel, and gaming.

Arthur Bedel: APAC is notoriously difficult to navigate because of its fragmented layout. How does this challenge the long-held assumption that a single global payment setup is enough?

Brian Sze: Unlike Europe, where the European Union (EU) and the Euro simplify regulatory and currency hurdles, APAC comprises 30 to 40 countries with entirely different frameworks. There is no unified guidance.

For example, while Singapore and Hong Kong are very open and actively let new businesses in, whereas the Japanese market presents a sophisticated landscape that requires a highly tailored approach. To thrive in the region, you have to solve for:

• Hyper-localization - Navigating varied currencies, languages, and preferred payment methods
• Infrastructure - Moving away from expensive cross-border settlements in favor of local acquiring, which can be three times more cost-effective and significantly boosts acceptance rates
• Regulatory precision - Adapting to local mandates, like the Hong Kong Monetary Authority’s (HKMA) specific requirements for Apple Pay positioning in Hong Kong.

Arthur Bedel: In previous interviews, you’ve highlighted three main components – interchange fees, 3D Secure (3DS), and localization – as keys to success. How can a merchant practically master these without getting bogged down in operational intensity?

Brian Sze: It requires shifting from a transactional mindset to a strategic one. At Checkout.com, we help merchants manage these pillars. Here is how we break it down:

• Interchange fees - In APAC, interchange fees are higher than in Europe, ranging from 1.5% to 2.2%. This makes it an "issuer’s market," where local banks have the budget to run aggressive promotions. We help merchants tap into these issuer relationships to drive spending
• Smart 3DS adoption - There is also no set standard for 3DS in APAC. While it’s mandated in Japan, it’s only a guideline in Malaysia. We use machine learning to develop a fraud strategy that allows acquirers to lift 3DS requirements where safe, reducing friction at checkout
• Local APMs - 95% of APAC consumers shop online, preferring to pay with local alternative payment methods like Alipay, GCash, or PayNow. Products like Flow, allow merchants to add or remove these methods via a single integration.

Arthur Bedel: Last month at Thrive Hong Kong, you mentioned that Checkout.com is now building for agentic commerce. How does AI change the way we think about the checkout button?

Brian Sze: Agentic commerce is a world where AI agents execute transactions on behalf of consumers. While it’s in the early stages, we are seeing real demand in APAC. 

Our goal is to build a connective layer across protocols like OpenAI’s Agentic Commerce Protocol, Google’s Universal Commerce Protocol, as well as frameworks from Visa and Mastercard. This allows merchants to plug into a single ecosystem and meet their customers wherever they are, whether that’s a human on a smartphone or an AI agent navigating the web.

Arthur Bedel: What excites you most about Checkout.com’s future in APAC, and what is the biggest misconception merchants still have about this region?

Brian Sze: The biggest misconception is that one size fits all. You cannot drive cost-efficiency or customer success without localization. What excites me most is our continued investment in our people and technology to bridge this gap. We’re actively growing our headcount across Singapore, Hong Kong, Shanghai, Tokyo, and Sydney to better serve the region and accelerate product development.

Arthur Bedel: Final piece of advice: if a merchant is looking to enter APAC for the first time tomorrow, where should they start?

Brian Sze: Start in Hong Kong or Singapore. The taxation and regulations are straightforward, and they serve as the perfect launchpad for the rest of the region.  Just remember: the back-end of your business should never be a bottleneck to your front-end ambition.