eCommerce payment trends in Southeast Asia
Malaysia, Vietnam, and the Philippines are among SEA’s largest economies.
Between now and 2026, the Southeast Asian market is projected to triple at a compound growth rate of 22 percent and will reach around $230 billion in gross merchandise volume.
While the pandemic has been a driving force, the fact that SEA has been a highly digitized region, to begin with, plays a big role. In the six largest economies — Thailand, Malaysia, Singapore, Indonesia, Vietnam and the Philippines — 70% of the population is online.
Let’s take a closer look at three countries in particular — Malaysia, Vietnam and the Philippines — to get an even clearer picture of what’s happening with SEA eCommerce trends.
Indonesia: Consumers in Indonesia use an average of 3.16 e-Wallets.
There is no question; e-wallets are booming across Asia, particularly in Indonesia. In Indonesia alone, transaction values rose by over 200 per cent in 2019, and the country is home to almost 50 digital wallet players vying for customers. In the last 3 years, the eWallet transaction value grew 334%, reaching US$28 B.
It is forecasted that Indonesia’s total eCommerce transactions will reach US$137.5 billion by 2025—the highest in the Asia Pacific region—representing 59% of the region’s accumulated transaction value. eCommerce revenue will also increase to US$56.4 billion in the same year.
Malaysia: Bank transfer apps are the favorite alternative payment methods.
During the first months of the pandemic, Malaysian eCommerce volumes increased by 149%. Today, nearly half of online purchases in Malaysia are made through bank transfer apps, making that payment option the most popular payment option for online purchases, followed by credit cards and cash. Some of the eWallets that Malaysia loves using are Boost, GrabPay, Touch n Go, Financial Process Exchange, or FPX.