Image credit: Vectorpocket/ Shutterstock.com Alternative payment techniques such as mobile and digital wallets are progressively displacing traditional payment methods such as cards, bank transfers and cash/cheques in the Asia-Pacific (APAC) e-commerce market, according to information and analytics business GlobalData.The business anticipates the APAC e-commerce market to grow from$1.6 trillion in 2018 to $2.3 trillion in 2022. According to GlobalData’s newest Customer Payments Insight Survey, alternative payments grew from 49%in Q1 2017 to account for 51% of the total e-commerce deal value in APAC in Q1 2018. Payment cards, bank transfers, and cash/cheques accounted for 28%, 15 %, and 6%respectively.Ravi Sharma, senior payments expert at GlobalData, stated that adoption of non-traditional payments in the APAC region has actually taken place well ahead of that in the West.” Asia’s card facilities and payment habits are not well entrenched and therefore
alternative payment tools use a welcome alternative to money,”Sharma stated.”Rising mobile phone penetration combined with a big unbanked population has likewise turned the region into a potential development market for alternative payments.”The alternative payments market in APAC is mainly driven by China, where such solutions represented
53% of overall e-commerce deal worth in Q1 2018. Alipay remains the most popular tool total with a 41 %share, followed by WeChat Pay with 7.1%. Tencent, which owns the Tenpay brand, presented WeChat Pay to take advantage of the appeal of its social networks app WeChat, which has a substantial consumer base of around one billion.Similarly, non-traditional payment tools account for nearly one third of the overall e-commerce transaction worth in Australia in Q1 2018, with PayPal being the favored option with a share of 15.9 %. In India, the major push towards electronic payments came from the federal government with the demonetization effort implemented in November 2016 displacing cash to a big level in favor of alternative payments in 2017. The share of alternative services, however, declined in 2018 partially as an outcome of the cash supply restoring to normalcy and the main bank’s regulation relating to stricter KYC procedures for digital wallet users.
“With Asian customers keen to embrace digital payments, rising smart device penetration and launch of brand-new digital payment services are anticipated to additional propel the development of alternative payments in the area’s e-commerce market,” stated Sharma.