The Southeast Asia online payment landscape is going through a digital transformation due to changing retail and customer trends. Despite economic upsets during the COVID-19 pandemic, digital payment markets are growing in Southeast Asian (SEA) countries like the Philippines, Thailand, and Vietnam. This is partly due to the emergence of online retailers as well as an increase in the adoption of the internet and mobile phone users. This has made it easier for the population in SEA countries to have access to online banking apps and mobile wallets.
Types of Digital Payments in SEA
As many SEA countries move toward a cashless economy, there are different digital payment methods that are being developed and fine-tuned to meet the growing demand in these countries. As an online payment service provider, investing in innovative technologies to meet these growing demands can offer success for early players. Some of the most common methods of digital payments in the SEA are:
- Banking cards: These include debit and credit cards. These cards allow people to purchase goods from online stores using a simple authentication process. An online transaction can occur within a matter of seconds.
- Mobile wallets: A mobile wallet is a way for you to carry cash digitally. It allows you to link credit or debit card information to the wallet so that cash can be deposited into the wallet when needed. This cash can then be used to make online purchases. Some banks also offer their own mobile wallets so that your account can be directly linked to it.
- Internet banking: Online banking or e-banking is a digital payment system that allows banks to carry out financial transactions. Banks allow customers to use mobiles and laptops to access their bank accounts and make fund transfers quickly.
- QR code: Another example of contactless payment is the QR code. Just a quick scan of a code by a mobile device can help you make cash transfers at the point of sale.
The Rise in E-Commerce Sales
One of the contributing factors to the increase in digital payments is due to the growth of e-commerce sales. With more people shopping online, there is a need for a SEA online payment solution. All e-commerce websites use some forms of payment gateway that helps facilitate digital payments. SEA’s growth in the E-commerce field is the reason behind the development of alternate forms of payments that don’t use physical cash. Alternative platforms such as e-wallets and internet banking are paving the way for digital online payment solutions to become a permanent fixture in the economy. The Philippines and Indonesia are among the largest e-money markets in SEA.
The Future of Digital Payments in SEA
With the e-commerce market becoming more accessible in SEA countries, it opens up the door for the development of new payment solutions, and it is estimated that digital payment services will become more popular should current trends continue. As an online payment service provider, the e-commerce market is a lucrative option to invest in. In many SEA countries, several fintech companies have already made great investments into payment solutions.< Next post - The Digital Revolutions Taking Place in Southeast Asia Prev post - Grow Your E-Commerce Business: Expand to Southeast Asia >