Southeast Asia’s ecommerce market is projected to reach $325 billion by 2028, fueled by the rapid adoption of digital payments and regional interoperability, unlocking more opportunities in cross-border commerce for businesses, the International Data Corporation (IDC) said Tuesday.

The firm said in its latest InfoBrief commissioned by global payments platform 2C2P and Antom that by 2028, digital payments are expected to account for 94 percent of total e- commerce payments in Southeast Asia.

The most significant growth can be seen in domestic payments (97.9 percent) and mobile wallets (94.9 percent), which have been instrumental in expanding the reach of ecommerce in regions that traditionally relied less on cards.

Meanwhile, real-time payments (RTPs) will see an exponential growth in 2028, reaching over $11 trillion.

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.

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 Philippines and the third in Indonesia and Thailand.

According to the report, there are also significant opportunities across SEA in intra-SEA cross border commerce.

Firstly, the opportunities in cross-border commerce as intra-SEA cross-border commerce is projected to reach $14.6 billion by 2028, a 2.8 times 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.

Secondly, the driving of cross-border commerce with regional payment connectivity (RPC) as 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.

Thirdly, there will be higher returns in cross-border commerce.

For 62 percent of surveyed SEA merchants who sold their services and products across borders, such transactions were, on average, 21 percent higher than domestic transactions.

Merchants stand to reap significant rewards by looking beyond their shores and building up their capacity to cater to neighboring markets.

Fourthly, the untapped potential of intra-SEA trade. Despite its promising growth, intra-SEA trade remains under utilized, accounting for only a small fraction of total cross-border commerce in each market.

To fully capitalize 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.

“Southeast Asia’s e-commerce landscape is evolving at a breathtaking pace. Merchants recognize 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,” said Agnes Chua, Managing Director of Business and Product Development of 2C2P.

“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,” she added.

Gary Liu, General Manager of Antom, Ant International, said that SEA 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,” he said.

He noted the firm sees 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 digitization 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,” he added.

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