Southeast Asia’s e-commerce to reach new heights, driven by digital payments and cross-border commerce growth

• By 2028, digital payments will make up 94% of e-commerce transactions in SEA
• Intra-SEA cross-border commerce set to hit $14.6B by 2028, growing 2.8 times from 2023

The latest report by market intelligence firm IDC, commissioned by global payments platform 2C2P and Antom, reveals that Southeast Asia’s (SEA’s) e-commerce market is projected to reach US$325 billion (RM1.44 trillion) by 2028. This growth is fuelled by the rapid adoption of digital payments and regional interoperability, unlocking greater opportunities in cross-border commerce for businesses.

This year’s report, How Southeast Asia Buys and Pays 2025, marks the fourth edition of the IDC InfoBrief since 2021. It surveyed 600 respondents across six Southeast Asian markets—Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam—examining the evolving digital payments landscape both regionally and within each country. As the world's fifth-largest economy, SEA’s exceptional growth trajectory is largely driven by its expanding e-commerce sector, underpinned by increasing digital payment adoption.

The report explores the region’s evolving digital payments landscape and provides a market-specific analysis of payment trends. It also highlights how these trends are reshaping business strategies and laying the foundation for future growth opportunities.

Key highlights from the report:

A comprehensive understanding of SEA’s digital payment landscape is critical to tapping into this US$325 billion (RM1.44 trillion) economy. To maximise reach within local markets, businesses must offer customers their preferred payment methods, enhancing the overall customer experience and driving higher conversion rates.

[RM1 = US$0.22]

• 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 will be seen in domestic payments (97.9%) and mobile wallets (94.9%), which have expanded e-commerce reach in regions that traditionally relied less on cards.
• Surge in real-time payments (RTPs): RTPs are projected to grow exponentially, surpassing US$11 trillion by 2028. This trend is already evident in Singapore, where RTPs like PayNow are the third most supported payment method among surveyed merchants in 2024. The rise of RTPs in Southeast Asia is largely driven by government initiatives to reduce cash reliance and promote fast, low-cost payment solutions that benefit both consumers and merchants.
• Dominance of mobile wallets and domestic payments: Mobile wallets and domestic payments remain the most popular payment methods 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 ranking as the second most accepted payment method among surveyed merchants in Singapore and the Philippines, and 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 $14.6 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 regional payment connectivity (RPC), which includes all six SEA markets. This collaboration aims to streamline inter-country payments, enhancing efficiency and reducing transaction costs.
• 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 neighbouring markets.
• Untapped potential of intra-SEA trade: Despite its promising growth, intra-SEA trade remains underutilised, accounting for only a small fraction of total cross-border commerce in each market. To fully capitalise 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 recognise the immense opportunities this growth brings them in driving e-commerce revenue, but also 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," she added.

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 digitisation solutions covering the full payment lifecycle while also exploring opportunities in global account services, financing, and treasury management to further support their expansion. 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," he added.