The e-commerce market in Southeast Asia (SEA) is expected to reach the impressive value of $325 billion by 2028, according to the latest InfoBrief from IDC, 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, Philippines, Malaysia, Singapore, Thailand and Vietnam
In its fourth edition since 2021, the research interviewed 600 participants and highlights how the fifth largest economy in the world shows an exceptional growth trajectory, broadly 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 domainUntil 2028, it is expected that 94% of the 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 $11 trillion by 2028. In Singapore, systems like PayNow are already the third most used payment method by surveyed merchants in 2024
- Diversified regional preferencesMobile wallets lead in popularity in Indonesia, Malaysia and Vietnam, while domestic payments dominate in Singapore and Thailand
Opportunities in cross-border trade
One of the most promising highlights of the report is the untapped potential of international trade between Southeast Asian countries:
- Intra-ASEAN international trade is expected to reach US$ 14,6 billion by 2028, representing a growth of 2,8 times in relation to 2023
- For 62% of the merchants in the region who sell their products and services internationally, cross-border transactions were, on average, 21% larger than the domestic ones
- Initiatives such as Regional Payment Connectivity (RPC), that unites the six markets studied, are strengthening and speeding up payments between countries, focusing on continuous cross-border transactions, efficient and economical
Challenges and opportunities for traders
Agnes Chua, General Director of Business and Product Development at 2C2P, commented on the rapidly evolving landscape: "The e-commerce landscape in Southeast Asia is evolving at a breathtaking pace. Merchants recognize the immense opportunities that this growth brings, but also the increasing complexity for its operations.”
Among the common challenges faced by merchants is customer support, problem solving, the integration of payment gateway and technological issues
Gary Liu, general manager of Antom, Ant International, added: "Southeast Asia is rapidly emerging as a global center for digital trade and innovation. As companies expand beyond borders, perfect and efficient transactions are essential to maintain competitiveness.”
For companies that want to fully explore this expanding market, the study recommends a comprehensive understanding of the region's digital payment landscape and the provision of payment methods tailored to local preferences, aiming to enhance the customer experience and generate higher conversion rates
With information benteuno.with
