Singapore – With the rapid adoption of digital payments and regional interoperability, the e-commerce market in Southeast Asia is anticipated to hit US$325b by 2028. This is according to IDC’s latest InfoBrief commissioned by global payments platform 2C2P and Antom.
In the research, it was noted that businesses must thoroughly understand the region’s digital payment landscape to unlock the full potential of its projected US$325b market. Along with this, they also emphasised that offering customers their preferred payment options is key to maximising market reach and increasing conversions.
Key findings of the study include the rapid growth of digital payments in SEA e-commerce, projected to make up 94% of total transactions by 2028. This shift is driven by domestic payments (97.9%) and mobile wallets (94.9%), noting enhanced accessibility in markets historically less reliant on card payments.
A surge in real-time payments was also observed, noting RTPs are expected to see exponential growth in 2028, achieving over US$1t.
According to the firm, Singapore is already experiencing the shift, with PayNow emerging as the third most widely supported payment method among merchants in 2024. This rise of RTPs is attributed to government-led initiatives aimed at minimising cash usage and enabling low-cost, rapid transactions.
Meanwhile, mobile wallets and domestic payments were found to dominate the region’s payment landscape. In 2023, mobile wallets ranked as the leading payment option in Indonesia, Malaysia, and Vietnam. On the other hand, domestic payments saw strong adoption.
Agnes Chua, managing director of business and product development at 2C2P, stated, “Southeast Asia’s e-commerce landscape is evolving at a breathtaking pace. Merchants recognise the immense opportunities this growth brings them in driving e-commerce revenue and acknowledge the increasing complexity it brings to their operations. This includes common challenges such as customer support and issue resolution, payment gateway integration, and technology issues.”
“At 2C2P, we empower businesses to navigate these challenges with confidence by delivering payment solutions that simplify operations, enhance cross-border capabilities, and drive growth in the region’s rapidly expanding digital economy so merchants can quickly unlock new opportunities and thrive in this dynamic environment,” Chua added.
It is also worth noting that the report identified significant opportunities across SEA in intra-SEA cross-border commerce. This includes Intra-SEA cross-border commerce expected to reach $14.6b by 2028, noting 2.8 times growth from 2023.
Except for Vietnam and Indonesia, average cross-border transaction values per customer exceed domestic transactions across SEA, signalling strong potential for businesses in the region.
As cross-border commerce is supported by initiatives such as the RPC, partnerships across the region further aim to strengthen and streamline inter-country payments. This focuses on the development of seamless, efficient, and cost-effective cross-border transactions.
Interestingly, for 62% of surveyed SEA merchants who sold their services and products across borders, such transactions were, on average, 21% higher than domestic transactions. Merchants stand to reap significant rewards by looking beyond their shores and building up their capacity to cater to neighbouring markets.
Gary Liu, General Manager of Antom, Ant International, said, “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 for maintaining competitiveness. At Antom, we see payments not just as infrastructure but as a catalyst for business growth.”
“By working with 2C2P and other businesses within Ant International’s ecosystem, we empower merchants with unified payment and digitisation solutions covering the full payment lifecycle while exploring opportunities in global account services, financing, and treasury management to support their expansion further. Through close collaboration with local regulators and industry partners, we aim to unlock new opportunities for businesses of all sizes, helping them thrive in Southeast Asia’s evolving digital economy,” concluded Liu.
For this research, IDC surveyed 600 respondents across six Southeast Asian markets, including Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam. Said paper explored the evolving digital payments landscape as a whole and in each market as influenced by the rapidly growing e-commerce sector.
