Story image

Alternative payments overtake traditional in APAC e-commerce

16 Aug 2018

GlobalData forecasts the APAC e-commerce market to grow from $1.6 trillion in 2018 to $2.3 trillion in 2022

Alternative payment methods 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.

According to the latest Consumer Payments Insight Survey, alternative payments grew from 49% in Q1 2017 to account for 51% of the total e-commerce transaction value in APAC in Q1 2018.

At the same time, payment cards accounted for 28%, bank transfers 15%, and cash/cheques 6%.

“Adoption of alternative payments in the APAC region has occurred well ahead of that in the West,” says GlobalData payments senior analyst Ravi Sharma.

“Asia’s card infrastructure and payment behaviour are not well entrenched and therefore alternative payment tools offer a welcome substitute to cash. Rising smartphone penetration coupled with a large unbanked population has also turned the region into a potential growth market for alternative payments.”

The alternative payments market in APAC is mainly driven by China, where alternative payment solutions accounted for 53% of the total e-commerce transaction value in Q1 2018.

Alipay remains the most popular tool overall with a 41% share, followed by WeChat Pay with 7.1%.

Tencent, which owns the Tenpay brand, introduced WeChat Pay to leverage the popularity of its social media app WeChat, which has a huge customer base of around one billion.

Similarly, alternative payment tools account for nearly one-third of the total e-commerce transaction value in Australia in Q1 2018, with PayPal being the preferred solution with a share of 15.9%.

“With Asian consumers keen to embrace digital payments, rising smartphone penetration and launch of new digital payment solutions are expected to further propel the growth of alternative payments in the region’s e-commerce market,” adds Sharma.

NVIDIA announces Jetson Nano: A US$99 tiny, yet mighty AI computer 
“Jetson Nano makes AI more accessible to everyone, and is supported by the same underlying architecture and software that powers the world's supercomputers.”
Slack doubles down on enterprise key management
EKM adds an extra layer of protection so customers can share conversations, files, and data while still meeting their own risk mitigation requirements.
NVIDIA introduces a new breed of high-performance workstations
“Data science is one of the fastest growing fields of computer science and impacts every industry."
Apple says its new iMacs are "pretty freaking powerful"
The company has chosen the tagline “Pretty. Freaking powerful” as the tagline – and it’s not too hard to see why.
NZ ISPs issue open letter to social media giants to discuss censorship
Content sharing platforms have a duty of care to proactively monitor for harmful content, act expeditiously to remove content which is flagged to them as illegal.
Partnership brings AI maths tutor to NZ schools
“AMY can understand why students make a mistake, and then teach them what they need straight away so they don't get stuck."
Polycom & Plantronics rebrand to Poly, a new UC powerhouse
The name change comes after last year’s Plantronics acquisition of Polycom, a deal that was worth US $2 billion.
Unencrypted Gearbest database leaves over 1.5mil shoppers’ records exposed
Depending on the countries and information requirements, the data could give hackers access to online government portals, banking apps, and health insurance records.