Singapore, Malaysia – ideal testing grounds for cross-border ecommerce expansion

Even though the e-commerce markets in Singapore and Malaysia are relatively small compared to Asian giants like China (USD 190 bln) and Japan (USD 64 bln), a recent study conducted by Payvision reveals that these two smaller countries stand out to the size of the cross-border share of the e-commerce market, offering unique e-commerce propositions which will help merchants to adapt locally and understand the particularities of this rapidly growing e-commerce region.

The same source points out thatthe benefits offered by cross-border e-commerce in Singapore and Malaysia to ISOs, PSPs, acquirers and their worldwide merchants.

According to results, an estimated 55% of all e-commerce in Singapore and 40% of all Malaysian e-commerce is cross-border, an extremely high percentage compared to cross-border e-commerce figures for Japan (18%) and South Korea (25%). Moreover, Singapore and Malaysia offer international companies an entrepreneurial environment, digital landscape and IT infrastructure to successfully test and adapt their products and marketing strategies.

The report also shows that credit cards are the preferred payment method for about 80% of the cross-border transactions and more than half of the products bought overseas are purchased from online stores based in the US. However, many Singaporeans speak Mandarin and this will prove to be an important driver for cross-border e-commerce between China and Singapore. The signing of the Free Trade Agreement with the EU will boost cross-border e-commerce between Europe and Singapore.

Another key conclusion of the report is that in order to successfully expand into these new markets, merchants need to partner with an international card processor with a global acquiring network, who has expertise in all aspects of cross-border e-commerce and extensive understanding of rules and regulations, multi-currency processing and risk management.

The survey ‘Cross-Border eCommerce in Asian Markets: Singapore and Malaysia’ has been carried out by Payvision, a payment solution provider specialized in global card processing for the e-commerce market, and the FSA Research Project, an initiative of the Financial Study Association of Amsterdam.

For more information about Payvision, please check out a detailed profile of this company in our dedicated, industry-specific online companies database.

Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation for mature and emerging markets.