ECOMMPAY ECOMMPAY

Payment &
Consumer Trends
in Asia and the
Pacific
ECOMMPAY is an international payment
service provider and direct card acquirer,
engineering bespoke payment solutions on
behalf of e-Commerce merchants worldwide.

ECOMMPAY ECOMMPAY

2018
ecommpay.com
2 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific

01
Introduction
e-Commerce is the umbrella term for various Alexander Pestana, Head of Business Development
industries and technologies operating online, (APAC) at ECOMMPAY, acknowledges that, “over
ranging from the transfer of electronic funds and the past few years, Asia has become a leader in the
transaction processing to supply chain management digital revolution, from manufacturing the latest
and related fields. Countries within the Asia-Pacific electronic gadgets to the development of cutting-edge
region have rapidly become one of the biggest drivers of software solutions.” Alexander sees this process as
e-Commerce growth. Based on the latest figures, a major challenge for regional players, “due to the
the region accounted for more than half of global numerous local payment solutions and the differing
e-Commerce sales in 2017, comprising USD consumer requirements in each Asia-Pacific country.”
1.365 trillion of the USD 2.352 trillion global
turnover. This growth is expected to continue, with the Alexander sees this process as a major challenge for
Asia-Pacific market share reaching USD 3.001 trillion regional players, “due to the numerous local payment
by 2021. solutions and the differing consumer requirements
in each Asia-Pacific country.” To shed some light
Though it holds immense potential, the region is on the market conditions and payment preferences
incredibly diverse in terms of legislation, languages, within the Asia-Pacific region, ECOMMPAY conducted a

“From a financial perspective the region leaped from the old-fashioned

banking era to a time in which anyone with a smartphone can buy
a coffee, pay for utilities bills, perform bank transfers, manage their
savings, and more – in just a few seconds. The demanding attitude of
modern consumers forces companies to develop simpler, faster, and
cheaper solutions to everyday needs. This same demand applies to
payment providers, since the payment process is expected to be
flawless, seamless, and completed in seconds.”

- Alexander Pestana

logistics, and the local payments landscape, which can thorough investigation into the e-Commerce landscape
prove challenging for e-Commerce merchants looking of China, Japan, Vietnam, Thailand, Malaysia, Indonesia,
to expand into new territories. Having opened an office and the Philippines, focusing on consumer behaviour.
in Singapore in 2015, payment service provider and
acquirer ECOMMPAY has extensive knowledge and
market expertise in Asia-Pacific.
4 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 5

02 Number of internet users (millions)

Market overview Source: We Are Social and Hootsuite: 2018 Global Digital
755.5

93,5%

74,5%

64,8%
57% 54%
50%
47,5%
132
117.5
54 65
23 32

Malaysia Thailand Vietnam Philippines Japan Indonesia China

Omnichannel distribution
Source: We Are Social and Hootsuite: 2018

4.24%
4.24%

4%

6%
4%

4%

6%
69.65%
35.91%

29%

26%
42%

56%

63%
61.85%

66%

54%

70%
26.10%

38%

Internet users & digital penetration
Though the Asia-Pacific region is home to the
biggest percentage of the world’s population and,
subsequently, a large amount of Internet users, each
country has its own, individual conditions. Countries
vary not only in regards to the percentage of
habitants with access to the internet, but also on the
devices, such as desktop, laptop or tablet computers
and mobile phones, preferred.
30%
China Japan Thailand Malaysia Indonesia Philippines Vietnam
For example, despite its high level of Internet
Smartphone Desktop Tablet
penetration (94%), Japan is only third largest in terms
of users. Indonesia and China, while only at 50% and
54% penetration (barely above the regional average of Smartphones are incredibly popular in Asia-Pacific. In China, Thailand, and Indonesia, users tend to use their
48%), respectively, are much more populous, meaning phones for access to the internet much more frequently than their desktop or laptop computers. In China,
that the total number of Internet users within these for example, 8 in 10 users access the internet via mobile device s, leading to the majority of e-Commerce
countries is high. For context, the total population of transactions to be facilitated through smartphones. Japan, the Philippines, and Vietnam stand out among
the EU, which was 741 million in 2016, is still less than neighbouring countries with comparatively high desktop usage. In Japan’s case, this can be explained by the
the number of internet users in China. median age distribution, which was 46.5 in 2016 .
6 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 7

02
Market overview Banking account penetration by region (Source: The World Bank ) 2011

Source: The World Bank: Financial Inclusion Data / Global Findex 2017 2017

Banking penetration
EU
Many countries within the Asia-Pacific region have
low bank account and card penetration. According to
data from the World Bank, the percentage of account 98%
92%
74,5%

holders (whether individual or partner accounts) at

banks or financial institutions reached 73% in 2017,
having grown by 13% since 2011. In the EU and North
America, the level of banking penetration is at 98% 92% 93%
and 93%, respectively. The lowest level of banking
penetration among the countries chosen for this North
study was observed in the Philippines, Vietnam, and
America 59% APAC
Indonesia. The same countries also have the lowest 49%
card penetration in the region. 60%
MENA 73%

Banking account penetration by country Debit card ownership by country

Source: he World Bank: Ibid. Source: The World Bank: Financial Inclusion Data / Global Findex 2017
98%
96% 87%
80% 81% 85%
74%
73%
64% 66% 67%
60%
48% 43%
41%
32%
30% 27%
27% 31%
21% 20% 21% 23%
13% 15% 13%
11%

Vietnam Philippines Indonesia China Thailand Malaysia Japan Philippines Vietnam Indonesia Thailand China Malaysia Japan

2011 2017 2011 2017

 8 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific
02
Market overview
Market volume
The majority of countries selected for this study are projected to exhibit
double-digit e-Commerce growth year-on-year. This estimate comes
as a result of rapidly expanding levels of internet penetration, which,
consequently, increases the numbers of e-Commerce consumers. Japan,
again, remains an exception. Its high banking and internet penetration
temper its growth rates, exhibiting only moderate increases year-on-
year. To grow at an even greater pace, countries within the Asia-Pacific
region should implement improved digital and logistical infrastructure,
which currently pose obstacles to e-Commerce development.
China
The world’s largest e-Commerce market, China
accounted for USD 1.133 trillion of global e-Commerce
transactions in 2017. Despite amounting to nearly
half (49.5%) of e-Commerce turnover worldwide,
there is still room for growth. Projections estimate
that the Chinese market will continue double-digit
growth annually until 2021. Despite the relatively low
numbers of payment card penetration, high volumes
of smartphone usage among Chinese consumers,
paired with the popularity of mobile-based payment
platforms, such as WeChat, ensure high volumes
of m-Commerce sales. Comprising USD 882 billion
or 73% of total e-Commerce sales in 2017, Chinese
m-Commerce could reach USD 2.236 trillion by 2021.
2017 1132.79
2019 1832.43
2021 2660.49
Total eCommerce transactions (billions)
Japan
As mentioned previously, Japan has both high
internet, banking, and card penetration, leading
to the popularity of e-Commerce among local
consumers. In 2017, 83.3% of the populace were
active in e-Commerce, especially on international
and local marketplaces, such as Amazon and
Rakuten. Additionally, Japan is ranked quite high in
the World Bank’s Logistics performance index (#12
in 2016), reflecting a high level of trade and transport
infrastructure, as well as a high overall quality
of logistics services. As a result, the Japanese
e-Commerce market is the second largest globally,
accounting for USD 95.33 billion in 2017 and
predicted to reach USD 111 billion in 2021.
2017 95.33
2019 104.1
2021 111.19
Total eCommerce transactions (billions)
The Philippines
According to data from the World Bank, 21.6% of the
local population in the Philippines is living in poverty.
Though the poverty level is gradually decreasing,
the internet and banking penetration remains low,
resulting in the smallest e-Commerce market
within the region. e-Commerce in the Philippines
faces additional challenges in terms of geography.
Comprised of more than 7,000 islands, shipping
products is notoriously complicated, earning the
Philippines 71st place in the World Bank’s Logistics
performance index. This has resulted in a sales
volume of USD 70 million in 2017, but infrastructural
improvements promise to boost the number to USD
130 million by 2021.
2017 0.07
2019 0.1
2021 0.13
Total eCommerce transactions (billions)
ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 9
Indonesia
The Indonesian e-Commerce market was estimated
at USD 8.21 billion in 2017, lagging a little behind
New Zealand at USD 9.29 billion. Despite having
immense potential due to a large population with
access to the Internet, surpassing even Japan
in terms of overall Internet users, the country is
hampered by the same geographical landscape as
the Philippines, earning it 63rd place in the World
Bank’s Logistics performance index. Spread across
thousands of volcanic islands, Indonesia faces the
same challenges in the quest to establish the digital,
shipping, and delivery infrastructure necessary for
the effective development of the local e-Commerce
market.
2017 8.21
2019 13.16
2021 18.07
Total eCommerce transactions (billions)
10 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 11

Vietnam

The Vietnamese economy is highly dependent on

cash, with almost 90% of all transactions in the
country paid for in cash. However, the Vietnamese
government has launched several initiatives to
combat the low banking penetration, aiming to have
at least 70% of citizens over the age of 15 possess
bank accounts by the end of 2020. This promises
to have an effect on e-Commerce, which reached
USD 2.08 billion in 2017 and is projected to reach
USD 3.46 billion by 2021. The country still has room
for improving both the local regulatory environment
and transport infrastructure, which would help it
move up from its current 63rd rank in the Logistics
performance index and 68th place in the Doing
Business ranking.

2017 2.08
2019 2.88
2021 3.64 KEY FINDINGS
Total eCommerce transactions (billions)

1 Banking and Internet pen-

etration varies across the
2 The majority of Asian
countries skipped desktop
Asia-Pacific region, but and went straight to mobile
Malaysia Thailand tends to be lower when devices
compared to the EU or North
Expected to reach sales volumes of USD 4.95 Thailand has relatively high banking penetration,
America
billion by 2021, Malaysia, despite having a lower but lags behind in terms of internet usage. While
population, enjoys both high internet and banking
penetration. This is partially reflected in the country’s
its 45th ranking in the World Bank’s Logistics
performance index could use improvement, the
3 Underdeveloped financial,
technological, and logistics
4 The majority of countries
reviewed in this study are
comparatively high quality of business regulation. country’s Business Regulation level is comparably infrastructure presents an expected to experience
Malaysia is ranked 24th in the World Bank’s Doing high in 26th place. The local e-Commerce market opportunity for e-Commerce double-digit e-Commerce
growth in the region growth year-on-year
Business ranking, between Iceland and Mauritius. still amounted to USD 3.56 billion in 2017,
In 2017, e-Commerce sales amounted to USD 2.63 projected to almost double by 2021, reaching USD
billion, and domestic growth is projected to steadily 6.84 billion.
increase over the coming years.

2017 2.62 2017 3.56

2019 3.69 2019 5

2021 4.95 2021 6.84

Total eCommerce transactions (billions) Total eCommerce transactions (billions)

12 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 13

03 related to price, with 56% of Chinese respondents and overall traffic in Indonesia, ValueWalk highlights that

Insights into 57% global respondents choosing “The prices are good”
as the main factor influencing their decision, the second
the conversion rates of Indonesian e-Commerce
are 200% higher on desktop. The clear consumer

consumer behaviour
One global trend resonates particularly strongly within
the Asia-Pacific region. The omnichannel approach
is essential for e-Commerce merchants looking to
appeal to Asian consumers, who tend to interact with
digital brands across multiple devices. For example,
a 2017 Retail Re port released by PwC revealed that
Chinese shoppers visit retailer webpages via mobile
much more frequently than shopping in-store (45%
weekly compared to 36% weekly, respectively).
e-Commerce merchants looking to improve customer
experience in hopes of increasing profitability and
overall efficiency must ensure that they establish a
comprehensive omnichannel strategy. Many brands
operating in Asia-Pacific have implemented the
A feature of the omnichannel approach within the
Asia-Pacific region that cannot be overestimated
is the influence of social media and reviews on the
buying habits of the local populace. For instance,
Thai consumers rely heavily on mobile applications,
conducting 50-60% of online product queries through
services such as Messenger, Line, Instagram, and
Kaidee.
Shoppers in China also use mobile applications and
social media when it comes to e-Commerce. The
aforementioned PwC report showed that 34% of
Chinese consumers cite “Superior online customer
reviews” as the main reason in choosing their favourite
retailer, while the global average for the same factor
most frequent response was “I trust the brand”, with
40% Chinese and 34% global consumers opting for this
answer. Fast delivery and good return policies were also
among the top choices. This demonstrates a clear shift
from the price-oriented approach Chinese consumers
had as recently as several years back. Today, their
reasons for choosing one service provider over another
is much more nuanced.
Another trend to highlight is the preference of many
Asian consumers to search for products or services
via mobile, but to carry out purchases via desktop
computers. Despite mobile traffic accounting for 70%
KEY FINDINGS
predilection for browsing via mobile but purchasing
via desktop or laptop devices is telling. Viewing
merchandise on desktop computers is considered
more reliable, presenting the opportunity to carefully
analyse the item selection on a wider screen. To
assuage consumer concerns, retailers must offer
guarantees. Marketplaces such as Alibaba, Taobao,
and Tmall offer escrow payments. In this scenario,
the marketplace acts as an intermediary between
shopper and merchant, holding the payment until
the former party confirms successful receipt of the
purchased product.

Another trend to highlight is the preference of many Asian consumers to 1 The omnichannel approach is
essential, mobile phone traffic
2 Personal computers are also
important: in some cases,
search for products or services via mobile, but to carry out purchases via is high conversion is higher on desktopp
desktop computers. Despite mobile traffic accounting for 70% overall traffic
in Indonesia, ValueWalk highlights that the conversion rates of Indonesian 3 Online consumers are not
located only in major cities:
4 Product reviews and rates are
important for local consumers, they
e-Commerce are 200% higher on desktop. The clear consumer predilection
suburban and rural population are keen to provide feedback
for browsing via mobile but purchasing via desktop or laptop devices is also benefits from e-Commerce
telling. Viewing merchandise on desktop computers is considered more
reliable, presenting the opportunity to carefully analyse the item selection
on a wider screen.

click-and-collect model, wherein shoppers carry out
purchases online, but pick up their items in-store. This
approach is widespread within Thailand, enabling
consumers in urban (27.2%), suburban (21.6%), and
rural (20.8%) areas to access an expanded inventory
of products both online and offline.
was 10% lower. Customer feedback is highly valued in
China, with shoppers frequently leaving reviews on the
purchases they make. According to Pete Stein, Global
CEO of Razorfish, “roughly 75% of all online users
provide purchase feedback at least once a month [in
China], while that figure is less than 20% in the States .”
Interestingly, although the most popular answer was
14 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific
04
Payments landscape
Due to the varying levels of bank account, card, and
internet penetration rates, each country within the
Asia-Pacific region requires an individual approach.
Merchants wishing to operate in the region face the
challenge of selecting the most appropriate payment
methods. In contrast to Western markets, wherein
ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 15
China
Mobile payments are massively popular in China. Dominated by two major players, the
market is divided between Alipay, who holds a 54% share, and WeChat Pay, holding just
under 40% . The popularity of mobile applications within the Chinese context is due, in
no small part, to their ability to combine social interaction, financial tracking, relevant
advertising, and payments seamlessly within a singular ecosystem.
Alipay WeChat
Alipay is also expanding its offering. Through WeChat, for example,
Extending the seamless customer
experience, which won it more than 54% users can chat to friends and
family, pay for goods and
services, as well as receive offers
half the local market, the mobile
application is now partnering
with local banks in the countries
40% based on geolocation, resulting in
more than 1 billion active monthly
Chinese tourists love to visit. In so users and 800 million monthly
doing, Alipay not only enhances payments carried out through the
its own capabilities and attracts application.
new users, but also promotes its
partners within the tourism sector.
Despite numerous barriers, including the inability card scheme China UnionPay remains the dominant
to speak foreign languages, the desire to travel in force in mainland China. The largest payment card
groups, and the preference for familiar environments organisation in the world, China UnionPay is the only
(in which payments are key), Chinese tourists spend, interbank network within China.
on average, USD 762, far surpassing the spend of non-
Chinese tourists, who average USD 486. However,
due to these same barriers, the travel destinations The most popular payment methods
of choice tend to be primarily neighbouring Asian in China, listed in order of popularity:
credit or debit cards are used as a silver bullet solution,
countries, which offer a similar context. Alipay’s
guaranteed to cover most, if not all, consumer bases,
new service will empower Chinese tourists to China UnionPay
and alternative payment methods are viewed as a
travel further abroad. Though payments through
tool for access to additional, niche audiences, the Payments through mobile
mobile applications are incredibly popular, local
Asia-Pacific market demands that specific payment applications (Alipay, WeChat Pay)
requirements be met.
Bank transfers
16 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific
Japan
Japanese consumers prefer a combination of
Western payment methods, such as credit/debit
cards.
The statistics show that 98% of the population have
a bank account, 87% own a debit card, and 68%
own a credit card. Besides the traditional Visa and
Mastercard, companies looking to operate in Japan
should consider offering domestic card brand JCB as
a card payment option. This is particularly convenient
for Western businesses since they are able to tap into
the country’s consumer base by offering a method
already popular in their region.
Other than cards, Japanese consumers pay for
goods and services via online banking and via cards
or cash in convenience stores. For example, by
checking out with Konbini, consumers are able to pay
at convenience stores, such as 7-Eleven, throughout
Japan.
The most popular payment methods
in Japan, listed in order
of popularity:
Credit cards (JCB, Visa, Mastercard)
Bank transfers (online banking)
Convenience stores (Konbini)
ATM payments (Pay-Easy)
ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 17
Malaysia
In Malaysia, credit/debit cards enjoy considerable
popularity. For example, if in 2011 only 23% of the
population had a debit card, then this number has
grown to 74% by 2017. Payments via cards are
becoming increasingly widespread as consumers
are becoming increasingly familiar with this payment
method, viewing it as a safe way to pay for purchases.
Malaysian consumers usually own several credit and
debit cards.
The most popular payment
Online banking has also had a significant impact on methods in Malaysia, listed in
the local payments landscape, with banks such as order of popularity:
Hong Leong, Maybank, CIMB, RHB Bank, and Public
Bank Berhad offering this option. Credit cards (Visa, Mastercard, PayNet)
Online banking
Over-the-counter payments
18 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific
The Philippines
As mentioned previously, the payments landscape
within the Philippines is diverse. Cash payments are
widespread, mostly due to low finance inclusion:
only 32% of the population has a personal or a jointly
owned bank account. Projecting significant changes
to this tendency in the near future is difficult, mostly
due to the fact that uptake is not growing as rapidly
as in other countries within the region.
e-Wallets, such as the local GCash or Smart Money,
are present on the market, but do not account
for a significant portion of the local population.
SMART Money is a partnership between local
telecommunications company SMART, Mastercard
(which enables users to receive a card), and Banco
De Oro and is available only to SMART mobile
subscribers. Currently, the number of partner banks
has grown and a remittance service has been added.
ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 19
Although there is a possibility that the popularity of
smartphones will embrace technological innovation
and boost the usage of e-Wallets in the future, as
happened in China, the most popular option for
online payments is online banking. Banks such as
Banco de Oro, Metrobank, Bank of the Philippine
Islands (BPI), Unionbank, and Asia United Bank
(AUB) are not only popular for online payments, but
also for their recently improved online banking apps.
The most popular payment methods
in The Philippines, listed in order of
popularity:
Online banking
Indonesia
Cash-on-delivery (over-the-counter payments)
More traditional payment methods, such as online
ATM payments
banking, bank transfers, and over-the-counter
e-Wallets (GCash, Smart Money) payments, are also preferred by Indonesian
consumers. Krung Thai Bank, Bank of Ayudhya,
United Overseas Bank, Bank Central Asia, Rakyat,
Bank Mandiri, and Bank Negara are the most popular
in the country.
As roughly 150 million Indonesians still lack a bank
account, cash payments are crucial. Another rising
trend in the country is payments in installments. The most popular payment methods
Cards are slowly gaining popularity in the country. If in Indonesia, listed in order of
in 2011 only 11% of population had a debit card, then popularity:
in 2017 the card share has reached 32%.
Online banking / Bank transfers
Over-the-counter payments in supermarkets
ATM payments
Cards
Installments via cards or bank transfers
20 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 21

Vietnam
Online banking is crucial in Vietnam, with e-Wallets are also gaining popularity in the country,
Vietcombank, Vietinbank, Bank for Investment and with different sources reporting that anywhere from
Development of Vietnam, Asia Commercial Bank, 3 to 10 million people possess one, if not several.
Techcombank, and VPBank as the most popular Among the various options, Ngân Lượng, Payoo, and
service providers. Cards also occupy a portion of the MoMo are the most popular. However, none of these
market share, but only 15% of cardholders have used hold a major share in the market at present. Some
their payment cards in 2016 . The explanation for experts believe this is due to the fact that existing
this is the low density of ATMs in rural areas, where e-Wallets are inconvenient for mass users.
70% of the population live.

Cash-on-delivery is quite popular in terms of online

payments in the country. According to the World The most popular payment
Bank, 90% of people who bought something methods in Vietnam, listed in order
through the Internet paid using this method and the of popularity:
remaining 10% paid online. This could be explained
by the fact that only 10% of employees receive their Online banking
wage onto an account in a financial institution, while
60% receive their wage in cash only. Cash-on-delivery Thailand
e-Wallets (Ngân Lượng, Payoo, MoMo)

Cards Thai consumers, 81% of whom have a bank account,

rely on conventional payment methods, such as
online banking. Bangkok Bank, Kasikorn Bank, Siam
Commercial Bank, Krungthai Bank, TMB Bank, Bank
of Ayudhya, and CIMB Bank are the most popular
service providers of this payment option. Cards and
e-Wallets, despite the popularity of cash payments,
are also present. The most popular payment
Despite having a high banking penetration, only 60%
methods in Thailand, listed in order
of the Thai population had a debit card in 2017. In this
of popularity:
regard, mobile phone operators are stepping in and Online banking
providing their own e-Wallets (akin to SMART Money
in the Philippines). This is true of the most popular Over-the-counter payments
e-Wallet in Thailand, True Money, which is a product
to mobile telecommunications operator TrueMove. Cash-on-delivery

e-Wallets (True Money)

Cards
22 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 23

05
Closing thoughts and
recommendations Strategy for penetrating the Asia-Pacific region
“The strategy for penetrating the Asia-Pacific market
for a European company will be heavily dependent
ECOMMPAY’s Head of Business Development (APAC), Alexander on the countries targeted and the products and/or
Pestana, believes that anyone looking to do business in Asia-Pacific services offered. It’s not like operating within the EU,
as each country will have its own, unique regulation,
needs to understand the specifics, nuances, and particularities
rules, laws, and requirements. Bureaucracy is likely to
of each individual country, as there is no one-size-fits-all solution
be a massive headache, as each country will require
that would address the needs of the entire region. market participants to own a local bank account and
a local office.
Everything, especially payments, should be easy and
Key differences between Asian and seamless. As Asians value speed, solutions such as
region, most consumers have bypassed desktops
and laptops in favour of mobile. Even those parts of
the population that are considered to be low-income
possess smartphones, so mobile applications and
webpages adapted to mobile browsing are essential
for commercial success.
Another major factor is price sensitivity. Though
this trend has begun abating in recent years, with
consumers in large markets, such as China and Japan,
beginning to consider value and quality when choosing
products, the belief that new products should not only

European payment service providers
“The Asia-Pacific region is very fragmented in terms of
doing business online and accepting payments. Each
country has difference consumer preferences, each
country has different payment methods, each country
presents a challenge in its own way. Despite many
payment service providers recognising the need for a
single, unified solution, none in the region are capable
of offering this to prospective clients. The problem
tends to be that local fintechs are growing too fast, as
are their regional markets. As a result, they do not try
to compete at a Pan-Asian level.
In most cases, at least from a technological point
of view, local payment gateways in Asia-Pacific are
not as competitive as their counterparts in the EU or
North America. Even something as readily available
to European merchant clients as 3D Secure is viewed
as a new, innovative feature in Asian markets. Also,
because the local e-Commerce markets in Asia and
Southeast Asia are still growing rapidly, local payment
service providers have a different approach than
European tech companies. Rather than solving client
pain points and explaining a payment service provider’s
capabilities and added value services, Asian payment
companies offer a basic connection to the major local
banks and alternative payment methods.
In contrast, European companies are used to working
across the EU/EEA and are looking to implement
the same approach in the Asia-Pacific region. This is
immensely challenging, considering that there are far
less potential partners offering widespread coverage
in all the major markets.”
OneClick Payment are particularly relevant. Customer be better, but also cheaper, remains prevalent among
service should be equally localised: merchants should large percentages of local populations.
offer immediate support in local languages. The This, incidentally, is one of the reasons why WeChat
marketplace model is popular for this specific reason. Pay and Alipay have enjoyed the success they have.
Consumers can access a range of products in one Not as bureaucratic as banks, the mobile payment
place, quickly and efficiently. applications enable anyone with a smartphone
The omnichannel experience is of utmost importance to download and begin using their e-Wallet and
when seeking to do business in Asian markets. In this associated services free of charge.”
“The key factor to overcome the fragmented payment landscape in South
East Asia,” explains Alexander, “is to offer the right payment methods to
the right people, combined with a seamless mobile user experience (the
payment flow must be as simple as possible, completed within a few
steps). The challenge is to merge all the relevant local payment methods
in a simple check-out procedure.”
24 ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific ECOMMPAY / Payment & Consumer Trends in Asia and the Pacific 25

About ECOMMPAY
& the Author
ECOMMPAY is an international payment service
provider and direct card acquirer, engineering
bespoke payment solutions on behalf of
e-Commerce merchants worldwide. Our PCI DSS
3.2 certified gateway facilitates an omnichannel
payment process, combining acquiring capabilities,
100+ payment methods, mass payouts, and
technological innovation within a single, seamless
integration. Headquartered in London, ECOMMPAY
is an authorised payment institution (API) regulated
by the Financial Conduct Authority. To facilitate client
access to new markets, ECOMMPAY maintains a
global presence with seven international offices,
employing 450+ specialists, which includes 200+
dedicated IT professionals.

Our Singapore office opened in 2015, focusing

on providing flexible, tailored payment services to
merchants based in or looking to enter the Asia-
Pacific region. Three years on, the ECOMMPAY team
in Singapore has grown significantly. Alexander
Pestana, Regional Head of Business Development,
joined in May 2017 to advance the payment service
provider’s interests throughout the region. With
over 10 years of experience in the banking and
online payments industries across the EU and
APAC, Alexander has a deep understanding of the
technological requirements needed for successful
expansion in the challenging Asia-Pacific region.
References
1. eMarketer: Asia-Pacific Retail and eCommerce sales: eMarketer’s estimates for 2016–2021
2. Ecommerce Foundation, Japan B2C E-commerce Report 2016
3. We Are Social and Hootsuite: 2018 Global Digital
4. EY: Banking in Asia-Pacific
5. The World Bank: Financial Inclusion Data / Global Findex 2017
6. Marketing-Interactive.com: 8 key e-commerce trends coming out of China
7. Access Intelligence: 7 Key Differences Between Chinese and Western Consumers
8. ValueWalk: 5 Online Consumers Behavior Trends in Indonesia for 2018
9. PwC: Total Retail 2017
10. Forbes, What US Marketers Can Learn from Social Commerce in China
11. Vietnam Briefing: Vietnam’s Payment Preferences: Four Trends to Watch
12. Business Insider: What's next for Chinese mobile payments
Payment & Consumer
Trends in Asia
and the Pacific
2018