Singapore – With changing consumer and retail trends as well as more inclusive payment options, e-commerce spending is estimated to rise by 162% to reach US$179.8b by 2025, according to data from a joint study by market research firm International Data Corporation (IDC) and global payments platform 2C2P.
The largest markets for e-commerce payments are forecast to be Indonesia (US$83b), Vietnam (US$29b), and Thailand (US$24b).
The report also noted that digital payments are expected to account for 91% of total e-commerce spending by 2025, up from 80% in 2020. The Philippines,Vietnam and Thailand markets are projected to have noteworthy shifts with declining cash usage and increasing digital payments usage by 2025.
For Aung Kyaw Moe, founder and CEO of 2C2P, there is an opportunity to ride on the growth of digital payments and provide secure and reliable financial services to meet the ever-changing needs of consumers in the region.
“Digital payments are no longer a nice-to-have but a must-have, and a key part of every company’s business strategy. The ability of businesses to optimize their payment capabilities and operations according to geographical reach will also determine how they stay competitive, agile, and successful across the region,” Moe stated.
In terms of digital payment preference, local payment options like mobile wallets are preferred for ease and convenience across Southeast Asia. From 2020 to 2025, mobile wallets and BNPL in the region are expected to grow 30% and 58%, respectively. Indonesia alone is predicted to welcome over 100 million new mobile wallet users by 2025.
“Southeast Asia’s payment landscape is incredibly fragmented, and payment systems and their adoption, as well as regulations, can vary from market to market. To help businesses understand and navigate the region’s complexities, we’ve put together this comprehensive guide to the region’s payments landscape featuring regional and local payment insights,” said Michael Araneta, associate vice president and head of research and consulting at IDC Financial Insights Asia-Pacific.
