Airwallex, a global payments and financial platform, has released new data highlighting the growing demand for digital and localised payment options in Southeast Asia (SEA).
As the region shifts toward a cashless economy, UK businesses eyeing international expansion are encouraged to adapt to these preferences to capture opportunities in SEA’s booming e-commerce market.
Digital-first as Southeast Asia prepares for a cashless economy
The data finds that payment preferences of shoppers vary slightly by specific country, but across the region, credit and digital payment methods are gaining popularity, potentially as a result of Government policies supporting payment innovation and a shift to cashless economies:
- Digital payment methods like Apple Pay, Google Pay, and GrabPay are popular across all markets: 52 per cent of shoppers in Singapore, 83 per cent in Indonesia, and 80 per cent in Malaysia use this option
- A mix of payment options remains key: Gen Z and Millennials in Singapore prefer digital payment methods (63 per cent ) and debit cards (63 per cent) over credit cards (48 per cent)
- BNPL is gaining traction: over half (52 per cent) of online shoppers in Malaysia and Indonesia favour using this method
A smooth localised checkout experience is key
Shoppers in SEA expect quick, transparent and secure checkouts, with localised payment options. Merchants who account for these preferences will benefit from customer trust and completed transactions.
- Pricing transparency is a must: More than 90 per cent of shoppers in SEA say they need clear pricing in local currency and mobile-friendly checkout pages before making a purchase
- Basked abandonment risk: 60 per cent of shoppers in SEA feel frustrated when redirected to another page for payment, making them less likely to complete a transaction.
- Security is top priority: 95 per cent of shoppers in the region rank visible security badges as one of the most important features of any checkout experience
South East Asia (SEA) is one of the fastest-growing e-commerce markets in the world and expected to reach a market volume of $187.20billion by 2029.
Ben Hornby, director, sales, SME and growth at Airwallex, sees this as an opportunity for UK businesses.
“In the current economic climate, e-commerce business owners are having to make different decisions when it comes to expanding and maintaining their businesses globally. However, there is still hope for growth when looking beyond domestic markets. With a payment partner like Airwallex, businesses are able to expand into SEA’s major and emerging markets – which may not have been an immediate consideration – like a local, while staying secure and compliant with local regulations.”
