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IDC reports digital payments will grow 162% in Southeast Asia by 2025

Wednesday 3 November 2021 14:04 CET | News

US-based research company IDC has released a report commissioned by Singapore-based 2C2P, showing that ecommerce spending will reach USD 179.8 billion by 2025 in Southeast Asia.

As a result of changing consumer and retail trends, and more inclusive payment options, ecommerce spending will rise by 162% to reach USD 179.8 billion by 2025 across the region, with digital payments accounting for 91% of transactions, according to the report.

Key highlights of the report:

  • The ecommerce market will become more accessible with 188.6 million new ecommerce users in 2025. The largest markets for ecommerce payments are forecast to be Indonesia (USD 83 billion), Vietnam (USD 29 billion), and Thailand (USD 24 billion).

  • With the entry of new ecommerce consumers, a range of payment services are required. Digital payments are expected to account for 91% of total ecommerce spending by 2025, up from 80% in 2020. The Philippines, Vietnam, and Thailand are projected to have shifts with declining cash usage and increasing digital payments usage by 2025.

  • Local payment options like mobile wallets are preferred for ease and convenience across Southeast Asia. From 2020 to 2025, mobile wallets and BNPL in the region are expected to grow 30% and 58%, respectively. Indonesia, alone, is predicted to welcome over 100 million new mobile wallet users by 2025.

  • As ecommerce growth takes off, the range of interfaces multiplies from online, merchant stores, marketplaces, and social commerce platforms. Businesses must be able to optimise front-end and back-end operations to capture user ease and mindshare.


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Keywords: research, ecommerce, digital payments, growth markets, social commerce, BNPL
Categories: Payments & Commerce
Companies:
Countries: South East Asia
This article is part of category

Payments & Commerce