Shoppers in Southeast Asia expect quick, transparent and secure checkouts, seeing localised payment options as a must-have, according to new data from Airwallex, the global payments and financial platform.
With many businesses in the UK currently reassessing their cross-border trade strategies and considering broader markets to expand into in light of new and evolving tariffs, Airwallex has unveiled new insights regarding what shoppers in Southeast Asia are looking for when it comes to payments.
The data finds that payment preferences of shoppers vary slightly by specific country, but across the region, credit and digital payment methods are gaining popularity, potentially as a result of Government policies supporting payment innovation and a shift to cashless economies.
Digital payment methods like Apple Pay, Google Pay, and GrabPay are popular across all markets: 52 per cent of shoppers in Singapore, 83 per cent in Indonesia, and 80 per cent in Malaysia use this option. A mix of payment options also appears to remain key. In fact, Gen Z and Millennials in Singapore now prefer digital payment methods (63 per cent) and debit cards (63 per cent) over credit cards (48 per cent).
Following trends seen elsewhere across the globe, buy now, pay later (BNPL) is gaining traction, with 52 per cent of online shoppers in Malaysia and Indonesia favouring using this method.
Meeting expectations
Airwallex says that merchants who account for the payment preferences of shoppers in Southeast Asia (SEA) will benefit from customer trust and more completed transactions. Some of the key needs of these consumers include:
- Pricing transparency: More than 90 per cent of shoppers in SEA say they need clear pricing in local currency and mobile-friendly checkout pages before making a purchase
- Abandonment risk: 60 per cent of shoppers in SEA feel frustrated when redirected to another page for payment, making them less likely to complete a transaction.
- Security: 95 per cent of shoppers in the region rank visible security badges as one of the most important features of any checkout experience
Southeast Asia is one of the fastest-growing eCommerce markets in the world and is expected to reach a market volume of $187.20billion by 2029.
Ben Hornby, director of sales, SME and growth at Airwallex, explains why he sees this as an opportunity for UK businesses: “In the current economic climate, e-commerce business owners are having to make different decisions when it comes to expanding and maintaining their businesses globally. However, there is still hope for growth when looking beyond domestic markets.
“With a payment partner like Airwallex, businesses are able to expand into SEA’s major and emerging markets – which may not have been an immediate consideration – like a local, while staying secure and compliant with local regulations.”
