Southeast Asia's E-Commerce Market Predicted to Reach THB 11.21 Trillion by 2028
IDC forecasts rapid growth driven by digital payment expansion and cross-border commerce opportunities.
According to a recent report by IDC, commissioned by the global payment platform 2C2P and ANTOM, the e-commerce market in Southeast Asia is projected to reach a valuation of THB 11.21 trillion (approximately USD 325 billion) by 2028. This growth is primarily attributed to the rapid expansion of digital payment systems and increased regional collaboration, which are expected to unlock greater opportunities for cross-border commerce in the region.
The report titled 'How Southeast Asia Buys and Pays 2025' is the fourth IDC InfoBrief published since 2021, based on a survey of 600 respondents across six Southeast Asian countries: Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam.
It examines the evolving digital payment landscape across different markets, positioning Southeast Asia as the fifth-largest economy in the world.
The region's notable growth is driven significantly by the expansion of the e-commerce sector, fueled by the increasing adoption of digital payment methods.
A key highlight of the report indicates that understanding the overall digital payment landscape in Southeast Asia is critical to tapping into the THB 11.21 trillion economy.
Enhancing access to local markets necessitates offering payment methods aligned with consumer preferences, which not only improves the overall consumer experience but also increases conversion rates.
Specific insights from the report include:
Growth of Digital Payments in E-Commerce: By 2028, digital payments are expected to account for 94% of all payments in the Southeast Asian e-commerce market.
The most significant growth will come from domestically-focused payment channels, projected at 97.9%, and digital wallets at 94.9%, playing a crucial role given the lower credit card usage in the region.
Rise of Real-Time Payments (RTPs): RTPs are anticipated to experience exponential growth by 2028, with a projected market value exceeding THB 379.5 trillion (around USD 11 trillion).
This trend is already observable in Singapore, where PayNow is the third most popular payment method among merchants as of 2024.
Popularity of Digital Wallets and Domestic Payment Channels: Digital wallets and domestic payment methods continue to dominate usage in Southeast Asia.
In 2023, digital wallets were the preferred payment method in Indonesia, Malaysia, and Vietnam, while domestic payment channels maintained popularity in Singapore and Thailand.
This trend is expected to continue into 2024.
Additionally, IDC identified significant opportunities in cross-border commerce within Southeast Asia:
Market Opportunities for Cross-Border Commerce: The value of cross-border commerce within Southeast Asia is projected to reach THB 504 billion (approximately USD 14.6 billion) by 2028, growing 2.8 times from 2023. Notably, the average value of cross-border transactions per consumer in Southeast Asia tends to be higher than domestic transactions, with the exception of Vietnam and Indonesia, indicating substantial business opportunities in the region.
Cross-Border Commerce Driven by RPC Initiatives: Cross-border commerce is further supported by the Regional Payment Connectivity (RPC) initiative, which aims to streamline and enhance international payment systems among the six Southeast Asian nations.
Higher Returns from Cross-Border Transactions: Research indicates that 62% of Southeast Asian merchants engaged in cross-border business can generate revenue from these transactions that exceeds domestic transactions by an average of 21%.
Merchants looking to expand can achieve lucrative returns by exploring neighboring markets.
Underutilized Potential of Intra-Regional Trade: While intra-regional trade within Southeast Asia has shown significant growth, it remains underutilized in each market.
To fully leverage these opportunities, merchants are required to understand the diverse business environments in each country and maximize shared advantages through appropriate strategies.
Industry experts stress the rapid evolution of the e-commerce landscape in Southeast Asia.
Merchants are becoming increasingly aware of the vast potential derived from this growth that drives e-commerce revenues while also confronting escalating complexities in business operations such as consumer service, issue resolution, payment system integration, and technological challenges.
2C2P provides solutions that help businesses navigate these challenges effectively, simplifying operations, enhancing cross-border trade potential, and promoting growth in the rapidly expanding digital economy of the region.
This enables merchants to unlock new opportunities and achieve robust growth in an ever-evolving market.
Antom's representatives highlighted the country's rapid emergence as a global hub for digital commerce and innovation, emphasizing the necessity for businesses to rely on seamless and efficient transaction systems to expand cross-border growth and maintain competitive capabilities.
The firm collaborates closely with local regulatory bodies and various industry partners to unlock new opportunities for businesses of all sizes amid the ongoing development of Southeast Asia's digital economy.
The report titled 'How Southeast Asia Buys and Pays 2025' is the fourth IDC InfoBrief published since 2021, based on a survey of 600 respondents across six Southeast Asian countries: Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam.
It examines the evolving digital payment landscape across different markets, positioning Southeast Asia as the fifth-largest economy in the world.
The region's notable growth is driven significantly by the expansion of the e-commerce sector, fueled by the increasing adoption of digital payment methods.
A key highlight of the report indicates that understanding the overall digital payment landscape in Southeast Asia is critical to tapping into the THB 11.21 trillion economy.
Enhancing access to local markets necessitates offering payment methods aligned with consumer preferences, which not only improves the overall consumer experience but also increases conversion rates.
Specific insights from the report include:
Growth of Digital Payments in E-Commerce: By 2028, digital payments are expected to account for 94% of all payments in the Southeast Asian e-commerce market.
The most significant growth will come from domestically-focused payment channels, projected at 97.9%, and digital wallets at 94.9%, playing a crucial role given the lower credit card usage in the region.
Rise of Real-Time Payments (RTPs): RTPs are anticipated to experience exponential growth by 2028, with a projected market value exceeding THB 379.5 trillion (around USD 11 trillion).
This trend is already observable in Singapore, where PayNow is the third most popular payment method among merchants as of 2024.
Popularity of Digital Wallets and Domestic Payment Channels: Digital wallets and domestic payment methods continue to dominate usage in Southeast Asia.
In 2023, digital wallets were the preferred payment method in Indonesia, Malaysia, and Vietnam, while domestic payment channels maintained popularity in Singapore and Thailand.
This trend is expected to continue into 2024.
Additionally, IDC identified significant opportunities in cross-border commerce within Southeast Asia:
Market Opportunities for Cross-Border Commerce: The value of cross-border commerce within Southeast Asia is projected to reach THB 504 billion (approximately USD 14.6 billion) by 2028, growing 2.8 times from 2023. Notably, the average value of cross-border transactions per consumer in Southeast Asia tends to be higher than domestic transactions, with the exception of Vietnam and Indonesia, indicating substantial business opportunities in the region.
Cross-Border Commerce Driven by RPC Initiatives: Cross-border commerce is further supported by the Regional Payment Connectivity (RPC) initiative, which aims to streamline and enhance international payment systems among the six Southeast Asian nations.
Higher Returns from Cross-Border Transactions: Research indicates that 62% of Southeast Asian merchants engaged in cross-border business can generate revenue from these transactions that exceeds domestic transactions by an average of 21%.
Merchants looking to expand can achieve lucrative returns by exploring neighboring markets.
Underutilized Potential of Intra-Regional Trade: While intra-regional trade within Southeast Asia has shown significant growth, it remains underutilized in each market.
To fully leverage these opportunities, merchants are required to understand the diverse business environments in each country and maximize shared advantages through appropriate strategies.
Industry experts stress the rapid evolution of the e-commerce landscape in Southeast Asia.
Merchants are becoming increasingly aware of the vast potential derived from this growth that drives e-commerce revenues while also confronting escalating complexities in business operations such as consumer service, issue resolution, payment system integration, and technological challenges.
2C2P provides solutions that help businesses navigate these challenges effectively, simplifying operations, enhancing cross-border trade potential, and promoting growth in the rapidly expanding digital economy of the region.
This enables merchants to unlock new opportunities and achieve robust growth in an ever-evolving market.
Antom's representatives highlighted the country's rapid emergence as a global hub for digital commerce and innovation, emphasizing the necessity for businesses to rely on seamless and efficient transaction systems to expand cross-border growth and maintain competitive capabilities.
The firm collaborates closely with local regulatory bodies and various industry partners to unlock new opportunities for businesses of all sizes amid the ongoing development of Southeast Asia's digital economy.
