Digital Payments to Fuel 100% Growth in Southeast Asia’s E-Commerce Marketby Fintech News Singapore October 24, 2023
Southeast Asia is anticipating a 100% expansion in its e-commerce market over the next five years, driven by accelerated digital payments growth, led by Buy Now Pay Later (BNPL), mobile wallets, domestic payments, and credit cards.
SEA leads in digital economy growth at 15.8% for the next five years, outpacing the United States and EU. South Korea (12.7%) and Japan (10.2%) follows closely, unlocking significant commerce opportunities for SEAKJ.
Cross-border e-commerce revenue is primed to grow by 70% to $148.1 billion by early 2027, outpacing the growth of domestic e-commerce revenue.
According to the report, BNPL is expected to grow by 38% in SEA, followed by mobile wallets (18.9%), domestic payments (16.9%), and credit cards (14.4%).
The report, “How Asia Buys and Pays 2023: Tapping into Asia’s Regional Commerce Opportunities,” was commissioned by global payments platform 2C2P and Ant Group and conducted by market intelligence firm IDC to examine the digital payment landscape across Southeast Asia (SEA), South Korea, and Japan (SEAKJ).
Aung Kyaw Moe, Founder and CEO of 2C2P, stated,
“Our mission at 2C2P is to empower businesses to navigate and thrive in the ever-evolving payment landscape in Asia.
Through our comprehensive payment solutions, we stand ready to partner with businesses to seize the exciting opportunities that lie within and across the region.”
Douglas Feagin, Senior Vice President of Ant Group and Head of Alipay+ Cross-Border Mobile Payment Services, said,
“We are committed to helping merchants, both large and small, to benefit from seamless digital payments, which are the foundation of future growth.
This has been particularly important with the ongoing increase in online consumption and resumption of cross border travel.”