GlobalData forecasts the APAC e-commerce market to grow from $1.6 trillion in 2018 to $2.3 trillion in 2022
Alternative payment methods such as mobile and digital wallets are steadily displacing conventional payment methods such as cards, bank transfers and cash/cheques in the Asia-Pacific (APAC) e-commerce market.According to the most recent
Customer Payments Insight Study, alternative payments grew from 49% in Q1 2017 to represent 51% of the total e-commerce deal value in APAC in Q1 2018. At the same time, payment cards accounted for 28%
, bank transfers 15%, and cash/cheques 6%. “Adoption of alternative payments in the APAC area has actually occurred well ahead of that in the West,”states GlobalData payments senior analyst Ravi Sharma.” Asia’s card infrastructure and payment behaviour are not well established and therefore alternative payment tools use a welcome replacement to cash. Increasing smartphone penetration combined with a big unbanked population has likewise turned the area into a prospective growth market for alternative payments.” The alternative payments market in APAC is mainly driven by China, where alternative payment solutions accounted for 53% of the overall e-commerce deal value in Q1 2018. Alipay remains the most popular tool general with a 41% share, followed by WeChat Pay with 7.1%. Tencent, which owns the Tenpay brand, introduced WeChat Pay to take advantage of the popularity of its social networks app WeChat, which has a substantial
consumer base of around one billion.Similarly, alternative payment tools represent nearly one-third of the total e-commerce transaction value in Australia in Q1 2018, with PayPal being the preferred service with a share of 15.9 %.”With Asian customers keen to accept digital payments, rising mobile phone penetration and launch of brand-new digital payment services are expected to further move the growth of alternative payments in the region’s e-commerce market, “adds Sharma.Alternative payments overtake standard in APAC e-commerce
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