The latest InfoBrief by market intelligence firm IDC, commissioned by global payments platform 2C2P and Antom, revealed that Southeast Asia’s (SEA’s) e-commerce market is projected to reach USD325 billion by 2028. This growth is fuelled by the rapid adoption of digital payments and regional interoperability, which will unlock more opportunities for businesses in cross-border commerce.
This year’s research paper, “How Southeast Asia Buys and Pays 2025,” marks the fourth edition of the IDC InfoBrief since 2021. IDC surveyed 600 respondents across six Southeast Asian (SEA) markets — Indonesia, Philippines, Malaysia, Singapore, Thailand, and Vietnam — examining the evolving digital payments landscape as a whole and in each market. As the fifth largest economy in the world, SEA’s exceptional growth trajectory is largely driven by its rapidly expanding e-commerce sector, underpinned by increasing digital payment adoption.
The InfoBrief research explores the region’s evolving digital payments landscape and provides a market-specific analysis of the payment trends in each market. It also sheds light on how these trends are reshaping business strategies and laying the foundation for future growth opportunities in the region.
Key highlights from the IDC InfoBrief:
It is critical to have a comprehensive understanding of SEA’s digital payment landscape to fully tap into this USD325b economy. To maximize reach within local markets, it is essential to offer customers their preferred payment methods to enhance the overall customer experience and drive higher conversion rates.
- Growth in ecommerce digital payments: By 2028, digital payments are expected to account for 94% of total e-commerce payments in Southeast Asia. The most significant growth can be seen in domestic payments (97.9%) and mobile wallets (94.9%), which have been instrumental in expanding the reach of ecommerce in regions that traditionally relied less on cards.
- Surge in Real-time payments (RTPs): RTPs will see exponential growth in 2028, reaching over USD11 trillion. This is already evident in Singapore, where RTPs like PayNow are the third most supported payment method, according to surveyed merchants in 2024. The rise in RTPs in Southeast Asia is largely driven by government initiatives to reduce cash reliance and promote lower-cost, fast-payment methods that meet the needs of both consumers and merchants.
- Dominance of Mobile Wallets and Domestic Payments: Mobile wallets and domestic payments lead in popularity across Southeast Asia. In 2023, mobile wallets were the top choice in Indonesia, Malaysia, and Vietnam, while domestic payments dominated in Singapore and Thailand. This trend continued in 2024, with mobile wallets being the second most accepted payment method by surveyed merchants in Singapore and the Philippines and the third in Indonesia and Thailand.
There are also significant opportunities across SEA in intra-SEA cross-border commerce.
- Opportunities in cross-border commerce: Intra-SEA cross-border commerce is projected to reach USD14.6 billion by 2028, a 2.8 times growth from 2023. Notably, except for Vietnam and Indonesia, average cross-border transaction values per customer surpass domestic values in SEA markets, highlighting significant opportunities for businesses operating in the region.
- Driving cross-border commerce with Regional Payment Connectivity (RPC): Cross-border commerce is further supported by initiatives such as the RPC, joined by all six markets in the SEA region. The collaboration aims to strengthen and streamline inter-country payments, focusing on the development of seamless, efficient, and cost-effective cross-border transactions.
- Higher returns in cross-border commerce: For 62% of surveyed SEA merchants who sold their services and products across borders, such transactions were, on average, 21% higher than domestic transactions. Merchants stand to reap significant rewards by looking beyond their shores and building up their capacity to cater to neighboring markets.
- Untapped potential of intra-SEA trade: Despite its promising growth, intra-SEA trade remains underutilized, accounting for only a tiny fraction of total cross-border commerce in each market. To fully capitalize on this, merchants must gain a deeper understanding of the distinctive operating environments in each market while leveraging shared advantages. By strategically addressing these factors, businesses can unlock the full potential of intra-regional trade and drive sustainable growth.
Agnes Chua, managing director of business and product development of 2C2P, stated, “Southeast Asia’s e-commerce landscape is evolving at a breathtaking pace. Merchants recognize the immense opportunities this growth brings them in driving e-commerce revenue and acknowledge the increasing complexity it brings to their operations. This includes common challenges such as customer support and issue resolution, payment gateway integration, and technology issues. At 2C2P, we empower businesses to navigate these challenges with confidence by delivering payment solutions that simplify operations, enhance cross-border capabilities, and drive growth in the region’s rapidly expanding digital economy so merchants can quickly unlock new opportunities and thrive in this dynamic environment.”
Gary Liu, general manager of Antom, Ant International, said, “Southeast Asia is rapidly emerging as a global hub for digital commerce and innovation. As businesses expand across borders, seamless and efficient transactions are essential for maintaining competitiveness. At Antom, we see payments not just as infrastructure but as a catalyst for business growth. By working with 2C2P and other businesses within Ant International’s ecosystem, we empower merchants with unified payment and digitization solutions covering the full payment lifecycle while exploring opportunities in global account services, financing, and treasury management to support their expansion further. Through close collaboration with local regulators and industry partners, we aim to unlock new opportunities for businesses of all sizes, helping them thrive in Southeast Asia’s evolving digital economy.”