Alternative payment approaches such as mobile and digital wallets are steadily displacing traditional payment methods such as cards, bank transfers and cash/cheques in the Asia-Pacific (APAC) e-commerce market, discovers leading data and analytics company GlobalData.The company anticipates the APAC e-commerce market to grow from$1.6 trillion in 2018 to $2.3 trillion in 2022. Inning accordance with the current Customer Payments Insight Survey by GlobalData, alternative payments grew from 49%in Q1 2017 to represent 51% of the total e-commerce transaction value in APAC in Q1 2018. At the exact same time, payment cards, bank transfers, and cash/cheques accounted for 28%, 15 %, and 6%respectively.”Adoption of alternative payments in the
APAC region has actually happened well ahead of that in the West. Asia’s card facilities and payment behavior are not well entrenched and therefore alternative payment tools provide a welcome replacement to cash. Rising mobile phone penetration combined with a big unbanked population has actually likewise turned the region into a possible growth market for alternative payments.”– Ravi Sharma, Elder Payments Expert at GlobalData The alternative payments market in APAC is mainly driven by China, where alternative payment services represented 53%of the total e-commerce transaction 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 utilize the popularity of its social media app WeChat, which has a big customer base of around one billion. Alternative payment tools account for nearly one third of the overall e-commerce transaction value in Australia in Q1 2018, with PayPal being the favored solution with a share of 15.9%. In India, the major push to electronic payments came from the federal government with the demonetization effort executed in November 2016 displacing money to a large extent in favor
of alternative payments in 2017. The share of alternative solutions, however, declined in 2018 partially as an outcome of the money supply restoring to normalcy and the reserve bank’s regulation regarding more stringent KYC procedures for digital wallet users.”With Asian consumers keen to embrace digital payments, rising smartphone penetration and launch of new digital payment services are anticipated to more propel the development of alternative payments in the region’s e-commerce market.
“– Ravi Sharma, Elder Payments Expert at GlobalData Alternative payments outnumber conventional payment methods in APAC e-commerce market, research study reveals