KUALA LUMPUR, 5 March 2025 – Southeast Asia e-commerce market is set to reach USD 325 billion by 2028, according to a new report by IDC, underscoring the region’s transformation into a digital commerce powerhouse. This growth is being driven by the rapid adoption of digital payments, real-time payment (RTP) networks, and a booming cross-border trade ecosystem.
A Digital Payments Revolution is Underway
The report reveals that by 2028, digital payments will account for 94% of all e-commerce transactions in SEA, signaling an almost complete shift away from cash-based transactions. Mobile wallets, real-time payments (RTPs), and Buy Now, Pay Later (BNPL) services are experiencing record adoption rates, particularly in Indonesia, Malaysia, and Vietnam.
“The dominance of digital payments is reshaping the entire e-commerce ecosystem in Southeast Asia. Merchants that fail to adopt mobile payments, RTPs, and BNPL options risk falling behind,” said David Chen, IDC Asia-Pacific Director for Fintech Research.
Key Trends Driving Southeast Asia E-Commerce Boom
- Mobile Wallets Leading the Charge – Apps like ShopeePay, GrabPay, and GCash have become the preferred payment method across multiple SEA markets.
- Real-Time Payments (RTP) Networks Expanding Rapidly – Countries like Singapore (PayNow) and Thailand (PromptPay) are setting the standard for seamless digital payments.
- Cross-Border E-Commerce Growth – Cross-border online trade is expected to grow 2.8 times to USD 14.6 billion by 2028, as more SEA merchants expand beyond domestic markets.
- BNPL and Alternative Payments on the Rise – Buy Now, Pay Later options are increasingly popular in Thailand, Vietnam, and the Philippines, offering consumers greater purchasing flexibility.
- Decline of Cash Transactions – By 2028, cash payments will represent only 6% of total e-commerce transactions in SEA, reinforcing the region’s shift to a cashless economy.
Cross-Border Trade and Regional Payment Connectivity (RPC) to Reshape Southeast Asia Commerce
With intra-ASEAN trade on the rise, Regional Payment Connectivity (RPC) initiatives are streamlining cross-border payments, making it easier for merchants to operate across multiple SEA markets. The report highlights that 62% of SEA merchants already engage in cross-border trade, with foreign purchases averaging 21% higher in value than domestic ones.
“Cross-border commerce is no longer a luxury—it’s a necessity. Businesses must integrate digital payment solutions that work across SEA markets to remain competitive,” noted Jessica Tan, a fintech analyst at IDC.
What This Means for Businesses and Policymakers
- Retailers & E-Commerce Players – Must prioritize mobile-first, cashless payment strategies to capture digital-native consumers.
- Financial Institutions & Fintech Startups – Need to scale up real-time payment networks and provide seamless BNPL options.
- Governments & Regulators – Should expand interoperable digital payment frameworks and incentivize cashless transactions.
Future Outlook: Southeast Asia E-Commerce and Digital Payments Are Just Getting Started
With Southeast Asia poised to become a global leader in digital commerce, businesses that embrace these trends early will gain a competitive edge in this high-growth market. Companies that fail to integrate seamless digital payments, RTPs, and cross-border capabilities risk missing out on one of the world’s fastest-growing e-commerce ecosystems.
For more insights on Southeast Asia’s e-commerce growth, digital transformation, and payment innovations, stay updated with ForwardMalaysia.my.
