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E-commerce payments in the APAC region are set to surge as more consumers look to replace traditional methods, new research has found.
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APAC e-commerce payments to increase 17%
23 November 2021
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According to GlobalData’s E-Commerce Analytics, e-commerce payments in APAC are estimated to increase by 16.7 per cent in 2021 to reach US$2.8 trillion. The value is anticipated to rise further at a CAGR of 12 per cent to reach US$4.3 trillion in 2025.
The surge, according to GlobalData, is due to an accelerated shift towards online shopping among consumers.
“Alternative payments have gained significant prominence among online shoppers in the Asia-Pacific (APAC) region with payment solutions such as mobile and digital wallets displacing traditional payment methods like cash and cards,” the group said.
“The APAC e-commerce market has been growing at a robust pace over last few years supported by rising Internet and smartphone penetration, growing middle class population and tech-savvy millennials. Social distancing measures as well as closure of physical stores due to lockdown amid COVID-19 made online shopping even more appealing for consumers.”
Commenting off the back of the findings, Ravi Sharma, lead banking and payment analyst at GlobalData, said: “The adoption of alternative payments in APAC has occurred well ahead of that in the West and now they are gradually replacing cash and cards.
“The rising smartphone penetration coupled with large unbanked population has helped in growth of alternative payments in the region.
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“The COVID-19 pandemic has further supported this trend as consumers are increasingly shifting to online channel and opting for digital payments, thereby benefiting these alternative payment tools.
“The usage of alternative payments is poised for major growth in the next few years in APAC, disrupting the overall consumer payment space in the region with gradual decline in cash usage. Increasing consumer demand for online shopping amid the pandemic, rise in smartphone penetration, and growing acceptance of these tools will further drive their usage in coming years.”
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