Online payment in Asia-Pacific: trends, methods and markets at a glance

The Asia-Pacific region is considered the most dynamic epicenter for payment methods and e-payment worldwide. It is not only the largest, but also the fastest growing digital economy – with a highly fragmented and innovation-driven payment landscape. E-commerce merchants who want to be successful here have to deal intensively with the local peculiarities of online payment.

In contrast to Western markets, where credit cards often dominate, consumers in Asia rely on a wide range of alternative payment methods. Digital and mobile wallets – such as Alipay+, WeChat Pay, OVO, GrabPay, GCash, Boost, PayPay and Doku – are particularly popular. These are supplemented by platforms such as Apple Pay and Google Pay, which are also increasingly being used in Asia.

Each region has its own characteristics – and knowing these is crucial for conversion in e-commerce.

China is the undisputed leader in digital payments. In 2023, the country recorded the world's highest transaction volume in online payments. Alipay and WeChat Pay in particular are ubiquitous: around 90% of Chinese online shoppers used them last year. The national card company UnionPay also plays a dominant role with a market share of 93% for card payments – but the real driving force is digital wallets, especially with QR code technology.

Hong Kong presents itself as a hybrid market: both payment cards and digital wallets have significant market shares. According to GlobalData, alternative payment methods accounted for 41.7% of e-commerce transactions in 2023, while cards accounted for 38.6%. Alipay and WeChat Pay are also among the preferred payment methods here, reflecting the proximity and economic integration with mainland China.

India is one of the most exciting growth markets in the e-payment sector. The combination of low-cost smartphones, growing internet access and innovative systems such as the Unified Payments Interface (UPI) is creating a digital payment boom. In addition to mobile wallets and QR code payments, Indian consumers are increasingly turning to real-time payments, Buy Now, Pay Later (BNPL) solutions and card payments via providers such as VISA, Mastercard and RuPay.

Although Japan has long been considered cash-heavy, a noticeable change is taking place. In 2023, around 63% of online purchases were paid for by credit or debit card – mainly via providers such as JCB. However, PayPay and international platforms such as PayPal or Amazon Pay are catching up.

However, cash payments are still popular, even in e-commerce. A special feature in Japan is the online-offline hybrid payment method “Konbini”: consumers can use it to pay for online purchases in person. When making an online purchase, customers receive a unique code that they can use to pay for it in cash at the checkout in their local store. Konbini payments make it possible to shop online without having cards or electronic wallets. Traditional payment methods such as Konbini, where online orders are paid for in cash at the supermarket, are becoming less important, but remain a relevant niche offering.

Malaysia is increasingly becoming a digital pioneer in the field of online payments. In 2023, account-to-account (A2A) transfers were the most frequently used payment method in e-commerce with a share of 39%. These direct account transfers enable quick and easy transactions without intermediaries.

E-payments via digital wallets also increased significantly: 24% of all online payments were processed via mobile wallets such as Touch 'n Go and GrabPay, which have become firmly established in consumers' everyday lives.

The Singapore government is actively promoting digitalization and financial inclusion - which is also noticeable in the area of online payments. According to a survey conducted in 2023, 40.1% of consumers preferred payment cards for online shopping.

At the same time, the proportion of alternative payment methods is growing steadily: in total, they accounted for 38.6% of e-commerce payments. Mobile wallets such as Apple Pay, PayPal, Google Pay and Buy Now, Pay Later (BNPL) services in particular are contributing to the rapid growth in the e-payment segment.

Thailand shows an exciting tension between traditional and modern payment methods in online retail. According to a study conducted in 2022, 62% of consumers still used cash on delivery as their preferred payment method when shopping online – only 8% relied on BNPL offers.

An important step towards digital online payment was the introduction of PromptPay by the Bank of Thailand in 2017. This system enables fast, secure and instant transfers – and has now established itself as the leading A2A payment method.

Digital wallets are also very popular: TrueMoney in particular, with a 52.6% market share, and RabbitLINE Pay, with 24.7%, dominate the mobile payment behavior of Thai consumers.

In Australia and New Zealand, credit and debit cards continue to dominate online commerce – with Visa, Mastercard and American Express as widely accepted providers in e-commerce. At the same time, Buy Now, Pay Later (BNPL) services such as Australia's Afterpay are experiencing strong growth: despite new regulations, there are around 7 million active BNPL accounts nationwide, particularly among younger shoppers. Digital wallets such as Apple Pay, Google Pay, PayPal and Samsung Pay are also becoming increasingly important, as more and more consumers are switching from cards to mobile payment methods due to convenience and security.

Online payment in Asia-Pacific is not only diverse, but also deeply rooted in local culture. For international merchants, this means that success in digital commerce requires more than just technical integration - it requires a deep understanding of the preferred payment methods in each individual market. Those who rise to this challenge will benefit from enormous customer potential in the world's largest e-commerce growth region.