IDC, the market intelligence firm, has examined the digital payments market across Southeast Asia (SEA), revealing the impact the e-commerce sector is having on digital payments growth.
Commissioned by global payments platforms 2C2P and Antom, the IDC InfoBrief looked at the Indonesian, Filipino, Malaysian, Singaporean, Thai and Vietnamese markets and examined 600 respondents in total to find out how much growth the SEA market could experience in the coming years.
In the fourth edition of its InfoBrief, IDC found that digital payments are reshaping business strategies and laying the foundation for future growth opportunities in the region. In fact, it found that the combined e-commerce market value for SEA could reach $325billion by 2028, with digital payments accounting for 94 per cent of e-commerce payments. Both domestic payments (97.9 per cent) and mobile wallets (94.9 per cent) have seen significant growth and have been instrumental in expanding the reach of e-commerce in SEA.
Mobile wallets and domestic payments lead in popularity across Southeast Asia. In 2023, mobile wallets were the top choice in Indonesia, Malaysia, and Vietnam, while domestic payments dominated in Singapore and Thailand. This trend continued in 2024, with mobile wallets being the second most accepted payment method by surveyed merchants in Singapore and the Philippines and the third in Indonesia and Thailand.
Tapping into the booming economy
The region’s economy is thriving, but without a comprehensive understanding of the digital payments landscape, it will be incredibly hard to find success. The InfoBrief delves into how firms can maximise their impact in local markets and tailor their offerings to meet customer preferences.
The IDC InfoBrief spotlights the impact of real-time payments (RTPs) in the region, too. It reveals that they will surge to reach $11trillion by 2028. This is already evident in Singapore, where RTPs like PayNow are the third most supported payment methods according to surveyed merchants in 2024. The rise in RTPs in Southeast Asia is largely driven by government initiatives to reduce cash reliance and to promote lower-cost, fast-payment methods which meet the needs of both consumers and merchants.
Cross-border potential
IDC’s InfoBrief also identifies significant opportunities across SEA in intra-SEA cross-border commerce, with the sector set to reach $14.6billion by 2028, a 2.8x growth from 2023. Notably, except for Vietnam and Indonesia, average cross-border transaction values per customer surpass domestic values in SEA markets, highlighting significant opportunities for businesses operating in the region.
Additionally, cross-border commerce is further supported by initiatives such as the RPC, joined by all six markets in the SEA region. The collaboration aims to strengthen and streamline inter-country payments, focusing on the development of seamless, efficient, and cost-effective cross-border transactions.
The InfoBrief also identifies the impact of higher returns in cross-border commerce and the untapped potential the intra-SEA trade can have on the region’s economy.
For 62 per cent of surveyed SEA merchants who sold their services and products across borders, such transactions were, on average, 21 per cent 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.
Despite its promising growth, intra-SEA trade remains underutilised, accounting for only a small fraction of total cross-border commerce in each market. To fully capitalise on this, merchants must gain a deeper understanding of the distinctive operating environments in each market while leveraging shared advantages. By strategically addressing these factors, businesses can unlock the full potential of intra-regional trade and drive sustainable growth.
Working together to strengthen the ecosystem
Agnes Chua, managing director of business and product development of 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 but also 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.”
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 also exploring opportunities in global account services, financing, and treasury management to further support their expansion. 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.”
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