UK merchants eye SEA as digital wallets and BNPL take over checkouts

By Puja Sharma

• More than 90% of shoppers in South East Asia (SEA) expect to see clear pricing in their local currency
• Digital payment methods are popular in all markets, preferred by 83% in Indonesia, 80% in Malaysia, and 52% of shoppers in Singapore 
• Preferences vary by country but over half (52%) of online shoppers in Malaysia and Indonesia favour using Buy Now Pay Later (BNPL) 
• Compared to Europe and the US, the payment landscape in SEA is highly localised and digital-first 

 New data from Airwallex, a global payments and financial platform for growing businesses, reveals what shoppers in SEA are looking for when it comes to payments. These insights are more timely than ever, arriving at a point when businesses in the United Kingdom are reassessing their cross-border trade strategies and may be considering broader markets to expand into in light of new and evolving tariffs.  

Digital-first as Southeast Asia prepares for a cashless economy 

The data finds that payment preferences of shoppers vary slightly by specific country, but across the region, credit and digital payment methods are gaining popularity, potentially as a result of Government policies supporting payment innovation and a shift to cashless economies: 

• Digital payment methods like Apple Pay, Google Pay, and GrabPay are popular across all markets: 52% of shoppers in Singapore, 83% in Indonesia, and 80% in Malaysia use this option 
• A mix of payment options remains key: Gen Z and Millennials in Singapore prefer digital payment methods (63%) and debit cards (63%) over credit cards (48%) 
• BNPL is gaining traction: over half (52%) of online shoppers in Malaysia and Indonesia favour using this method 

A smooth localised checkout experience is key 

Shoppers in SEA expect quick, transparent and secure checkouts, with localised payment options. Merchants who account for these preferences will benefit from customer trust and completed transactions. 

• Pricing transparency is a must: More than 90% of shoppers in SEA say they need clear pricing in local currency and mobile-friendly checkout pages before making a purchase
• Basked abandonment risk: 60% of shoppers in SEA feel frustrated when redirected to another page for payment, making them less likely to complete a transaction.
• Security is top priority: 95% of shoppers in the region rank visible security badges as one of the most important features of any checkout experience

South East Asia (SEA) is one of the fastest-growing eCommerce markets in the world and is expected to reach a market volume of $187.20 billion by 2029. Ben Hornby, Director, Sales, SME and Growth at Airwallex, sees this as an opportunity for UK businesses. He said, “In the current economic climate, eCommerce business owners are having to make different decisions when it comes to expanding and maintaining their businesses globally. However, there is still hope for growth when looking beyond domestic markets. With a payment partner like Airwallex, businesses are able to expand into SEA’s major and emerging markets, which may not have been an immediate consideration, like a local one, while staying secure and compliant with local regulations.”