Singapore – Amidst economic headwinds, Asia’s digital economies continue to post impressive gains, with cross-border initiatives and tools offering businesses new avenues to unlock unprecedented growth, according to the latest report by market intelligence firm IDC and commissioned by global payments platform 2C2P and Ant Group.
Data from IDC’s report mainly suggests that SEA leads in digital economy growth at 15.8% for the next five years, unlocking significant commerce opportunities for SEA and outpacing the United States and Europe.
Coupled with Korea and Japan, SEA’s digital economy is on the verge of explosive growth, projected to skyrocket from $501.7 billion in 2022 to a staggering $914.9 billion in 2027, marking an impressive 82% leap in just five years.
SEA also anticipates a 100% expansion in the e-commerce market, driven by accelerated digital payments growth, led by ‘buy now pay later’ options (38%), mobile wallet (18.9%), domestic payment (16.9%) and credit cards (14.4%).
Furthermore, private and public sector efforts are poised to inject an impressive $232.4 billion in fresh cross-border revenue into the SEA, Korea, and Japan economies from 2022 to 2027, as cross-border e-commerce revenue is primed to grow by 70% in those five years, outpacing the growth of domestic e-commerce revenue.
Talking about the results, Aung Kyaw Moe, founder and CEO of 2C2P, said, “Our mission at 2C2P is to empower businesses to navigate and thrive in the dynamic payment landscape in Asia. We hope the findings of this report encourage businesses to unlock the immense potential of Asia’s digital economies by tapping on existing public-and private-sector initiatives and tools.”
Meanwhile, Douglas Feagin, senior vice-president of Ant Group and head of cross-border mobile payment services at Alipay+, commented, “The rapid rise in the number and diversity of digital payment options presents a challenge for small to mid-sized merchants. Which is why it is now imperative for businesses to cater positively to these digital habits, and I believe that by working together, we can help more consumers and businesses benefit from digitalisation.”
