Asian ecommerce market is open to alternative payment options

Thursday 22 May 2014 13:31 CET | News

Although card-based payments is the norm in some Asian-Pacific countries, in China and India for example consumers have a growing preference for non-card payment methods, including digital wallets, according to the “Global Online Payment Methods: First Half 2014“report issued by the German secondary research organization

In Japan, payments in B2C ecommerce are dominated by pre-payment with a credit card, followed by cash or card payments upon delivery in distant second and in-store payments for online purchases.

In South Korea, credit card payments are most common in ecommerce, while regulations are strict about the security of such payments. In distant second, the payment method following card payments was money transfer.

In 2013, mobile payments expanded significantly in China, with gross merchandise volume of third-party mobile payment growing by around 7-8 times, boosted by mobile shopping. The number of online payment users in China topped a quarter of a billion, while the value of payments increased by half.

Alipay accounted for the largest share of the online payments market in China in 2013, while Tenpay came second. Alipay was also the largest player on the Chinese third-party payment market.

The share of cash-on-delivery on B2C ecommerce payments in India is forecasted to decrease from 2013 to 2016, although it still accounts for around a half of the market, as credit card and mobile payment increase there.

In Indonesia, bank transfer was the most preferred payment method in B2C ecommerce in 2013, followed by cash-on-delivery.

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Keywords: Asia, Japan China, India, South Korea, Indonesia, ecommerce, online payments, credit card
Categories: Payments & Commerce
Countries: World
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