With its rapidly growing digital economy, tech-savvy population, and a wealth of untapped potential for merchants expanding cross-border, the Southeast Asian market presents tremendous opportunities. Indeed, the Southeast Asian e-commerce market is currently experiencing rapid expansion, valued at nearly USD $100 billion and sustaining an annual growth rate at over 10%.
The key trends, challenges, and strategies that can help ambitious businesses navigate and capitalise on this dynamic market include:
This exclusive in-depth report provides a strategic analysis of the Southeast Asian payment market, offering essential insights for businesses seeking to expand in the region.
SEA’s immense potential lies with a rapidly growing population and an expanding community of internet users. Internet penetration rates are soaring, meaning the digital landscape in SEA is ripe for exploration. However, economic disparities and varying financial service demands across these countries present unique opportunities and challenges. As the working-age population continues to grow and the service sector dominates the economy, SEA's import and expenditure patterns reveal a diverse range of consumer needs. Let’s take a closer look.
Southeast Asia (SEA) has a rapidly growing population and an expanding community of internet users. Indonesia is the largest market in the region, with 277 million people in 2023, followed by the Philippines and Vietnam.
Internet penetration highlights the digital potential of these markets. Indonesia leads with 210 million internet users, while Malaysia and Singapore, despite smaller populations, boast over 95% internet penetration.
Countries in SEA show significant economic disparities. In 2023, Indonesia leads with a gross domestic product (GDP) of $1.37 trillion, followed by Thailand and Singapore. Singapore's per capita GDP reaches $84,734, far ahead of others, which mostly ranges between $3,000 and $12,000.
These countries also have varying financial service demands. Malaysia and Singapore lead in savings account and credit card use, respectively. Indonesia and Vietnam have low credit card adoption rates despite high savings account ownership.
In 2023, SEA's working-age population (15 to 64 years old) makes up 60% to 70% of the total, forming its core consumer base. Singapore and Thailand have aging populations (over 15% aged 65+), while Vietnam and the Philippines will benefit from younger demographics.
The service sector dominates SEA’s economy, with Singapore leading at 72.4% as the financial hub. Indonesia and Vietnam maintain relatively high industrial sector shares.
2023 unemployment rates in these countries reflect stable employment. Thailand has the lowest at 0.91%, while Malaysia stands out with a higher rate of 3.86%.
SEA's imports also vary widely. Singapore leads with $423.5 billion import value of goods as a major free trade hub. Vietnam's manufacturing boom fuel raw material imports, while Malaysia's industrial base and growing middle class sustain strong import growth.
SEA's household income and expenditure highlight economic gaps. Singapore leads with $141,324 income and $58,872 spending. Wealth management thrives in markets like Singapore and Malaysia, while Vietnam and Indonesia focus on basic payments and microcredit, offering varied opportunities for financial services.
In 2023, Indonesia leads the SEA e-commerce landscape with $63 billion in transactions. Despite Singapore's smaller e-commerce volume, its per capita spending reaches $1,200, reflecting high consumption relative to its population size.
According to Statista, the e-commerce market in SEA is set to grow at a 10.8% compound annual growth rate (CAGR) from 2023 to 2029, surpassing Europe, South Korea, and Japan.
So where are the key pockets of growth? Indonesia leads with user growth from 58.63 million in 2023 to 99.10 million by 2029. Vietnam, Thailand, and the Philippines also show strong growth, driven by a booming digital economy.
Meanwhile, the importance of e-commerce in the daily lives of Southeast Asians becomes increasingly pronounced. 88% of Singaporeans shop online at least once a month, while other countries in the region have rates above 50%.
In addition, consumers in SEA actively shop online for services and products, with Indonesian consumers preferring to use Buy Now Pay Later (BNPL) services.
Top of people’s shopping lists are clothing, shoes, and cosmetics & body care, while Singaporeans also show a high demand for food and beverages.
Perhaps unsurprisingly, global merchants are increasingly attracted to the flourishing Southeast Asian e-commerce market. As such, the importance of cross-border trade to Southeast Asian merchants and consumers alike cannot be understated.
The cross-border e-commerce market in SEA is expected to reach $14.6 billion by 2028, growing 2.8 times from 2023, with the Philippines leading at 5.8 times growth.
IDC reports that cross-border e-commerce spending per consumer in SEA surpasses domestic levels. Singapore has the highest disparity, with per capita expenditure on cross-border transactions exceeding domestic purchases by 21%, with similar trends in Malaysia, the Philippines, and Thailand.
Cross-border e-commerce accounts for 61% of Singapore's total transactions, 45% in Malaysia, and 38% in Vietnam. Intra-SEA transactions remain low, led by Malaysia (7%) and Singapore (6%).
The e-commerce market in SEA features prominent regional platforms like Shopee and Lazada that dominates market share. Meanwhile, high mobile shopping penetration (75-95%) drives cross-border e-commerce growth.
To successfully expand in SEA, merchants should be prepared to leverage cultural similarities, robust trade infrastructure, and preferential tariffs while adapting to local payment preferences, which can vary from region to region.
In SEA, merchants face three major payment challenges:
There are three key steps that can help merchants navigate these cross-border payment challenges:
Merchants need to develop systematic solutions to address these challenges, as shown in the diagram below.
Expanding into SEA brings with it one key need – the acceptance of a diverse range of different payment methods, which can vary from country to country. IDC's 2023 study highlights three key benefits for merchants after adopting new payment options:
Three key considerations when introducing new payment methods include:
IDC’s 2024 payment survey identifies three core factors that merchants consider:
Based on these factors, IDC recommends that merchants prioritise:
Antom understands the uniqueness and complexities of payment markets in different countries. Our expertise in the payment market in SEA is there to help merchants build up effective market entry strategies.
In 2023, digital payment markets in SEA exhibited diverse transaction scales and penetration levels. Indonesia tops the transaction value with $88.42 billion but has a 45% penetration rate, suggesting considerable growth potential. In comparison, Malaysia and Singapore have smaller transaction volumes but have high penetration rates, demonstrating their mature digital payment systems and advanced digitalisation.
Digital payments in SEA are largely influenced by population size. Statista reports that Indonesia has the largest market, with 128 million digital payment users, while the Philippines, Vietnam, Thailand, and Malaysia have similar user bases.
Digital payments are widely used in SEA for online shopping, P2P transfers, and bill payments. Thai consumers frequently opt for digital payments in store.
In the Philippines and Indonesia, most digital payment users are young, while Vietnam and Malaysia have a more balanced age distribution. In Singapore and Thailand, over 40% of users are 45 and older, indicating an aging population that needs specialised payment services.
IDC's 2023 report reveals that digital payments make up 87% of e-commerce transactions, expected to reach 94% by 2028, while traditional methods may drop to 6%. SEA is rapidly transitioning from cash on delivery and ATM transfers toward digital payment solutions, with the fastest growth in real-time payments and digital wallets. This shift necessitates that merchants update their payment systems to adapt to market changes.
IDC’s report reveals that merchants in SEA mainly accept credit and debit cards. In the Philippines, 77% support digital wallets. However, only 30% to 50% of merchants in most markets accept new payment methods like real-time and QR code payments.
Card payments include credit, debit, and prepaid cards.
In Thailand, Malaysia, and Indonesia, international brands such as Visa and MasterCard dominate. Conversely, local card brands hold a larger market share in Vietnam, Singapore, and the Philippines. Antom covers every major card brand in SEA.
Singapore has the more mature credit card payment environment in the region. Credit cards account for 42% of e-commerce payments, while debit and prepaid cards have a lower share in e-commerce payments.
Digital wallets have become the main payment method for e-commerce in SEA, especially in Indonesia, Vietnam, and the Philippines. IDC reports 250 million digital wallet users in 2023, with expectations to reach 360 million by 2028. This growth trend highlights the development potential of digital wallets in SEA's payment landscape. As young consumers increasingly use mobile internet and change their payment preferences, the market size of digital wallets is expected to expand further in coming years.
The figure below shows the top three digital wallets in six Southeast Asian countries, illustrating a competitive market. Antom’s wide coverage of regional payments and robust technical support allow merchants to integrate major digital wallets on one platform.
Bank transfer systems in SEA are evolving toward digitalisation. New payment solutions are improving user experiences and promoting cashless societies. In Malaysia, bank transfers make up 39% of e-commerce payments, thanks to the FPX and DuitNow QR payments. PromptPay system plays a similar role in Thailand. Antom supports all major bank transfer methods in SEA.
Buy Now, Pay Later (BNPL) is a rapidly growing payment method in SEA, though still it currently makes up a small share of e-commerce payments. In 2023, BNPL accounted for 4% of e-commerce payments in Malaysia, with about 6 million users. IDC predicts that BNPL users in the region will rise from 71.2 million in 2023 to 145 million by 2028, with Indonesia leading the growth.
Key factors driving BNPL growth include:
Antom supports integrating BNPL services in Indonesia.
COD also accounts for a big share of e-commerce payments in SEA. Vietnam leads at 17%, where 70% of the population resides in rural and remote areas with underdeveloped digital payment infrastructure, making COD a main payment method for online purchases. Countries like Vietnam and the Philippines are actively implementing policies toward cashless societies.
In today's highly competitive market, choosing the right partner is key to business success. Partnering with Antom brings numerous advantages to your company and provides comprehensive support for your business operations.
Antom has powerful market resources and an extensive network, enabling businesses to quickly cover the mainstream markets. Through in-depth market analysis and flexible strategic planning, we ensure merchants can reach a broader target audience quickly, increasing brand visibility and market share. Whether you're an emerging business or an established brand, Antom can help accelerate your market penetration.
Each industry has unique needs and challenges. Through a professional team, Antom provides tailored solutions for specific industries, improving operational efficiency and market competitiveness and supporting businesses in achieving sustainable growth. This personalised service meets current customer needs and anticipates future trends, ensuring your business remains ahead of the curve.
In business activities, financial security and risk control are among the top concerns for companies. Antom boasts advanced technological capabilities, offering safe and reliable financial services. Our risk control system is rigorously tested, ensuring transparency and reliability in all transactions. Additionally, our fund management strategies are carefully designed to minimise risks and safeguard clients' financial security, allowing them to focus on their business with peace of mind.
In partnership with Antom, clients will experience unparalleled service. Our team not only provides expert consulting support but also offers comprehensive follow-up services. Our goal is to be the most trusted partner for our clients, providing home-like care and support throughout the partnership.
Antom has extensive market experience in various regions. Our team understands the local market operations and cultural habits, enabling us to provide practical market strategies. This deep local expertise allows us to help clients quickly adapt and integrate into new markets, minimising entry barriers and ensuring successful development in different market environments.
Partnering with Antom is not just an expansion of your business—it's an opportunity to access comprehensive support and efficient solutions. We are committed to creating great commercial value for our clients through fast market coverage, industry-specific customisation, robust security, attentive service, and rich market experience. With Antom, your business will embrace new development opportunities and a bright future.