The Southeast Asian e-commerce market (SEA) is expected to reach an impressive value of $325 billion by 2028, according to the latest IDC InfoBrief, a market intelligence company. The study, titled "How Southeast Asia Buys and Pays 2025," analyzed the digital payments landscape in six markets in the region: Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam.
In its fourth edition since 2021, the survey interviewed 600 participants and highlights how the world's fifth-largest economy is on an exceptional growth trajectory, largely driven by the rapidly expanding e-commerce sector and the growing adoption of digital payments.
Main trends in digital payments
The study identified significant patterns that are transforming trade in the region:
- Growing digital domainBy 2028, it is expected that 94% of total e-commerce payments in Southeast Asia will be made through digital means. Domestic payments (97.9%) and mobile wallets (94.9%) show the most significant growth, expanding the reach of e-commerce in regions traditionally less dependent on cards.
- Real-time payments on the riseRTPs (Real-Time Payments) are expected to reach over US$ 11 trillion by 2028. In Singapore, systems like PayNow are already the third most used payment method by merchants surveyed in 2024.
- Diversified regional preferences: Mobile wallets lead in popularity in Indonesia, Malaysia and Vietnam, while domestic payments dominate in Singapore and Thailand.
Opportunities in cross-border trade
One of the most promising highlights of the report is the untapped potential of international trade between Southeast Asian countries:
- Intra-SEA international trade is expected to reach US$14.6 billion by 2028, representing a 2.8-fold growth compared to 2023.
- For the 62% of traders in the region who sell their products and services internationally, cross-border transactions were, on average, 21% larger than domestic ones.
- Initiatives such as Regional Payment Connectivity (RPC), which unites the six markets studied, are strengthening and streamlining payments between countries, with a focus on seamless, efficient and cost-effective cross-border transactions.
Challenges and opportunities for traders
Agnes Chua, General Manager of Business and Product Development at 2C2P, commented on the rapidly evolving landscape: “The Southeast Asian e-commerce landscape is evolving at a breathtaking pace. Merchants recognize the immense opportunities this growth brings, but also the increasing complexity to their operations.”
Common challenges faced by merchants include customer support, troubleshooting, payment gateway integration, and technology 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 across borders, seamless and efficient transactions are essential to maintain competitiveness.”
For businesses looking to fully tap into this growing market, the study recommends a comprehensive understanding of the region’s digital payment landscape and offering payment methods tailored to local preferences to enhance the customer experience and drive higher conversion rates.
With information from benteuno.com
