Asia E-commerce & Payment Trends Report: Consumer Behaviours and Payment Landscapes Across Eight Markets

Preface

Asia is the world’s largest e-commerce market, generating over USD 1 trillion in annual sales and accounting for more than half of global online retail. Growth is powered by mobile-first consumers, a fast rising digital-native middle class, and trends like “shoppertainment”. Yet opportunity comes with complexity: the region’s fragmented payment landscape—from digital wallets to cash-on-delivery—creates operational trust challenges. As real-time payments and Open Banking expand, innovation is breaking down barriers and unlocking new growth across Asia’s dynamic and diverse digital economy.

Key Insights

• Asia’s e-commerce market has surpassed the trillion-dollar mark, driving more than half of global online retail sales.
• 88% of consumers in Thailand complete purchases via social platforms, highlighting the shift towards “shoppertainment”.
• The payment ecosystem is highly diverse: digital wallets, Buy Now Pay Later (BNPL), and cash-on-delivery (COD) dominate in different markets, with COD holding a 19% share in the Philippines.
• Open Banking is emerging as a solution to high transaction costs and fraud, facilitating cost-effective and secure “account-to-account” payments.
• Government-led digital infrastructure projects, including National QR Codes and real-time payment systems, are accelerating across the region.
• The increasing sophistication of fraud and high transaction costs present critical challenges for merchants managing cross-border payments.
• Asia’s e-commerce market is poised for continued growth, driven by digital adoption, an expanding middle class, and innovative payment solutions.

Unlocking opportunities in eight fast-evolving Asian economies

Among the eight Asian countries, Indonesia has the largest population, having reached 283 million in 2024, making it the world’s fourth most populous nation. This significant demographic dividend provides a vast user base for the e-commerce market. Other members of the “hundred-million population club” include Japan, the Philippines, and Vietnam. Japan, with a population of about 124 million, represents a mature market characterised by high purchasing power and well-established consumer habits, while the Philippines and Vietnam are full of youthful vitality, serving as core sources of future labour and emerging consumer groups.

Thanks to its vast population, Indonesia also leads in terms of internet users, while South Korea, Malaysia, and Singapore demonstrate an astonishing level of digital maturity. With internet penetration rates exceeding 95% in all three countries, they have effectively entered a mature phase of universal online connectivity.

The economic strength of the eight Asian countries varies considerably. Japan, with a total GDP of USD 4 trillion, serves as the region’s “ballast”, defining the overall scale of the market. In terms of per capita consumption capacity, Singapore stands out with a per capita GDP exceeding USD 90,000, clearly distinguishing itself from the rest. Along with Japan and South Korea — both also high-income nations — Singapore forms the high-value market tier within the region.

Among the eight Asian countries, Japan and South Korea have a credit card penetration rate of around 70%, reflecting mature financial consumption habits. In contrast, although Malaysia, Vietnam, and Indonesia show relatively high levels of debit card ownership, their credit card penetration remains low, with Indonesia at less than 2%. The main reasons for this “credit gap” are banks’ stringent credit approval criteria and users’ lack of reliable income documentation or established credit histories. This substantial market void has created fertile ground for the explosive growth of fintech. Digital wallets have resolved the issue of payment convenience, while Buy Now Pay Later has precisely met the instalment spending needs of those who “have savings but lack credit”.

From a demographic perspective, Vietnam, Indonesia and the Philippines boast large young populations, serving as the key engines of future consumption and labour force growth. Japan, on the other hand, faces a serious ageing challenge. The services sector stands as the core pillar of the economic structure in the eight Asian countries. In both Singapore and Japan, services account for around 70% of total output, indicating highly mature economic models. This structure also underpins relatively stable employment markets across the region.

The scale of imports across the eight Asian countries varies considerably. Japan tops the list with imports amounting to USD 743.5 billion, underscoring its vast domestic demand and its highly outward-oriented economic character. South Korea ranks second in terms of total import value and shows a high degree of dependence on imports from China. Among the Southeast Asian nations, Singapore has established itself as a key trading hub by virtue of its free-port status, while Vietnam’s rapid industrialisation has driven dual import demand for raw materials, machinery and consumer goods, demonstrating robust growth momentum.

Household income and expenditure levels explain the hierarchy of consumption capacity among these countries. Singaporean households, with their high incomes and strong spending power, serve as the benchmark for purchasing capacity in the region. By contrast, although households in Japan and South Korea also rank among the highest in income levels, consumer sentiment faces challenges. In Japan, real household incomes have been eroded by inflation, resulting in consecutive declines in consumer spending. In South Korea, widening income inequality has further dampened the vitality of overall consumption.