Southeast Asian e-commerce market expected to reach US$ 325 billion by 2028, study reveals

The Southeast Asian e-commerce (SEA) market is expected to reach an impressive US$ 325 billion by 2028, according to the latest InfoBrief from IDC, 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, Philippines, Malaysia, Singapore, Thailand and Vietnam.

In its fourth edition since 2021, the survey surveyed 600 participants and highlights how the world's fifth-largest economy has an exceptional growth trajectory, largely driven by the rapidly expanding e-commerce sector and growing adoption of digital payments.

Key trends in digital payments

The study identified significant patterns that are transforming trade in the region:

• Growing digital domain: 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 the reach of e-commerce in regions traditionally less dependent on cards.
• Real-time payments on the rise: RTPs (Real-Time Payments) are expected to reach more than US$ 11 trillion by 2028. In Singapore, systems such as PayNow already figure as 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 among Southeast Asian countries:

• Intra-SEA international trade is expected to reach US$ 14.6 billion by 2028, representing a 2.8-fold growth from 2023.
• For 62% of the region's merchants selling their products and services internationally, cross-border transactions were, on average, 21% higher than domestic ones.
• Initiatives such as Regional Payment Connectivity (RPC), which unites the six markets studied, are strengthening and streamlining cross-country payments, with a focus on continuous, efficient and cost-effective cross-border transactions.

Challenges and opportunities for traders

Agnes Chua, General Manager Business and Product Development at 2C2P, commented on the rapidly evolving landscape: “S Southeast Asia's e-commerce landscape is evolving at a breathtaking pace.Marketers recognize the immense opportunities this growth brings, but also the growing complexity for their operations

Common challenges faced by merchants include customer support, troubleshooting, payment gateway integration, and technology issues.

Gary Liu, Antom general manager, Ant International, added: “ Southeast Asia is rapidly emerging as a global hub for digital commerce and innovation.As companies expand beyond borders, seamless and efficient transactions are essential to maintaining competitiveness

For businesses looking to fully exploit this expanding market, the study recommends a comprehensive understanding of the region's digital payment landscape and offering payment methods tailored to local preferences, aiming to enhance the customer experience and drive higher conversion rates.

With benteuno.com information