The Southeast Asian (SEA) e-commerce market is projected to reach an impressive $325 billion by 2028, according to the latest InfoBrief from market intelligence firm IDC. The study, titled “How Southeast Asia Buys and Pays 2025,” analyzed the digital payments landscape across six regional markets: Indonesia, Philippines, Malaysia, Singapore, Thailand, and Vietnam.
In its fourth edition since 2021, the survey interviewed 600 participants and highlights how the world’s fifth-largest economy shows exceptional growth trajectory, largely driven by the rapidly expanding e-commerce sector and increasing adoption of digital payments.
Key trends in digital payments
The study identified significant patterns transforming commerce in the region:
- Growing digital dominance: By 2028, 94% of total e-commerce payments in Southeast Asia are expected to be made through digital means. Domestic payments (97.9%) and mobile wallets (94.9%) show the most significant growth, expanding e-commerce reach in traditionally less card-dependent regions.
- Rising real-time payments: RTPs (Real-Time Payments) are projected to surpass $11 trillion by 2028. In Singapore, systems like PayNow already rank as the third most used payment method among surveyed merchants in 2024.
- Diverse regional preferences: Mobile wallets lead in popularity in Indonesia, Malaysia, and Vietnam, while domestic payments dominate in Singapore and Thailand.
Opportunities in cross-border commerce
One of the report’s most promising highlights is the untapped potential of international commerce among Southeast Asian countries:
- Intra-SEA international commerce is expected to reach $14.6 billion by 2028, representing 2.8 times growth compared to 2023.
- For 62% of regional merchants selling products and services internationally, cross-border transactions were on average 21% larger than domestic ones.
- Initiatives like the Regional Payment Connectivity (RPC), which links the six studied markets, are strengthening and streamlining inter-country payments, focusing on continuous, efficient, and cost-effective cross-border transactions.
Challenges and opportunities for merchants
Agnes Chua, General Manager of Business and Product Development at 2C2P, commented on the rapidly evolving landscape: “Southeast Asia’s e-commerce landscape is evolving at a breathtaking pace. Merchants recognize the immense opportunities this growth brings, but also the increasing complexity for their operations.”
Among common challenges faced by merchants are customer support, issue resolution, payment gateway integration, and technological issues.
Gary Liu, General Manager of Antom, Ant International, added: “Southeast Asia is rapidly emerging as a global hub for digital commerce and innovation. As businesses expand beyond borders, seamless and efficient transactions are essential to maintaining competitiveness.”
For businesses looking to fully explore this expanding market, the study recommends comprehensive understanding of the region’s digital payment landscape and offering payment methods tailored to local preferences, aiming to enhance customer experience and generate higher conversion rates.
Source: benteuno.com
