Digital Payments and Innovation Fuelling the Experience Economy in Southeast Asia
Contributed by 2C2P Founder & CEO, Aung Kyaw Moe
There’s no doubt that Southeast Asia is on track to be the world’s digital payment powerhouse. Investments in the region’s Internet economy hit an all-time high with US$11.5 billion. There’s more too on the digital commerce front, with unprecedented growth highlighted by an IDC InfoBrief commissioned by 2C2P.
E-commerce is expected to reach 189 million new users with the largest markets for e-commerce payments forecast to be Indonesia ($83 billion), Vietnam ($29 billion) and Thailand ($24 billion), and an expected revenue growth of $179.8 billion by 2025 across the region.
E-commerce is a significant driver of payment innovation
The adoption of digital payment solutions has been key in this regard by allowing merchants to reach previously untapped customer groups and engage more easily in cross border e-commerce. This has been especially evident in the region’s dominant players - Lazada, Shopee and Tokopedia – all of which have grown sales revenue collectively by more than seven times since 2015.
The numbers also point to a substantial shift in online consumer behaviour. It is estimated that 40% of internet spending in China and 30 percent in Indonesia represent new consumption, rather than substitutes for in-person purchases.
Capturing new markets with social commerce
But now the market demands more than merely a seamless payment solution – the buzzword is ‘Experience’ – where social selling is expected to surge in a new competitive environment.
In the IDC report on How Southeast Asia Buys and Pays, e-commerce in Asia is becoming more of a ‘live’ and ever-changing experience, involving live webcasts and multichannel campaigns, reaching out to an international audience, cutting across product categories and buyer personas.
At 2C2P, we have broadened the ease and flexibility of digital payment methods such as mobile wallets and in-app payments, to provide the best payments experience, at scale.
Understanding markets essential for payment platforms
Diversification and rapid growth of platforms means payments players must understand shifts in marketplaces, consumer behaviour and platforms that resonate within a certain market.
The differentiator, for payment platforms that offer a distinctive customer experience, will be the ability to offer value-added and flexible services, and personalised experiences such as multi-currency converters, multi-location settlement, chargeback management, and reward or loyalty program capabilities.
Payment platforms that unlock opportunities in each market within Southeast Asia, will be the ones that succeed quickest.
In a constantly shifting space, the most competitive payment players must harness data and digital traction to retain customers and earn trust and credibility across contactless experiences and digital assets.
