Ppro Apac Report 2020
Ppro Apac Report 2020
Ppro Apac Report 2020
Asia Pacific
At PPRO, we’re proud to help make possible the payments revolution that
underpins the explosive growth of the e-commerce industry. Today, local
payment methods account for 77% of e-commerce spend; by 2024, it is
forecast that this share will increase to 82%.
But we’re even prouder to have helped our partners and their merchants
grow and succeed in more markets every year, and these reports are just
a small piece of that. They are tools designed to give you the knowledge
you need to open new markets. We hope you find them useful and we
wish you every success.
Yours sincerely,
Simon Black
CEO, PPRO
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Asia Pacific
There is a certain solemn shuffle in the way that On the bright side, at least for anyone involved in online
economic forecasts are released and updated. Long- retail, e-commerce appears to be enjoying a boom.
and online sales account for 20% of all retail sales⁹.
However, these averages conceal wide disparities.
The local payment culture
range forecasts are always a little uncertain. The markets In Malaysia, for instance, e-commerce volumes are
monitor them, and as the time draws near for them to be In China, TenCent announced that it was hiring The most common type of online payment method was
growing at a rate of 39% a year. Whereas, in Japan, a
updated, there is some sober speculation in the business new workers to cope with the boom in demand for the e-wallet, with a 46% market share⁹. Cards came
much more mature market, the growth rate is 9%⁹.
press about whether the previous estimate will have to e-commerce since COVID-19 made it hard for people to second at 30%, followed by bank transfers (13%), cash
be updated by fractions of a percentage point. shop instore⁵. During the peak of the outbreak in China, (7%) and various minor payment types (4%)⁹. The card
In rapidly industrialising and developing markets such as
online grocer Carrefour saw orders in some categories market is dominated by local schemes and minor players
the Philippines and Indonesia, e-commerce is growing at
Not this year. In October 2019, the IMF predicted that increase by 600%⁵. In Singapore, shoppers have been at 86%⁹. Visa has 9% of the card market, Mastercard 5%
close to or even more than 30% a year⁹. In more mature
Asia would grow by 5% in 2019¹. That’s 0.4% lower than buying four to eight times their normal order with and American Express less than 1%⁹.
markets such as Hong Kong, Taiwan and Singapore,
the IMF’s April 2019 projection for full year growth, but online grocers⁷. In South Korea, e-commerce operator the growth rate hovers closer to 10%⁹. 58% of all online
overall not too bad¹. How is that prediction holding up Coupang has seen deliveries rise from 2.2 million a day
now? before the outbreak to 3 million now⁸.
purchases in the region are made on a mobile device⁹.
Enabling and limiting
The short answer is that we don’t know yet. The novel Whether these changes in behaviour are permanent
China dominates the regional e-commerce market. 42%
of all e-commerce purchases worldwide take place in
factors
coronavirus has swept all assumptions before it and left or not remains to be seen. For now, all we can say for China10, so it’s unsurprising that China is a colossus in
them piled in a heap. By the time this report was going sure is that all economic forecasts for Asia Pacific are In the markets we researched, 76% of the population
the regional e-commerce market, even one as big as
to press, it appeared as if the worst of the pandemic was now outdated. The region is the part of the world that had a bank account and just 14% a credit card⁹. Access
APAC’s.
already over for Asia. seems to have the virus best under control. But for the to financial services varies a great deal from country to
economy to return to normal, Asia’s export markets also country. In Vietnam, for instance, 31% of the population
Southeast Asia looks like it will be the next big arena
Mass testing and strict social distancing has seen the need to follow its lead and take whatever measures are has a bank account compared with 100% in Australia⁹.
of competition, with local players squaring off against
number of new cases fall to zero in China². Singapore, necessary to beat the pandemic. US and Chinese competitors. Between 2017 and now,
Japan, South Korea and other Asian markets also In Southeast Asia, more than half of adults in the poorest
Amazon has expanded into Singapore11, Vietnam12
appeared to have the virus under control³. Reports In the meantime, the e-commerce industry looks 40% of households remain unbanked17. In India, 80% of
and Australia13. In a recent article, Reuters suggested
indicate that people in these countries are once more as if it could be one of the few beneficiaries of this the population has a bank account⁹. This is largely thanks
that investing in Singapore is often a stepping stone to
spending money. unprecedented disruption. to a government initiative to broaden access, which has
expansion into larger Southeast Asian markets such as
seen 300 million new accounts open in just a few years18.
Indonesia14.
But that does not mean that a rapid recovery — the According to the World Bank, China is building a network
v-shaped bounce so beloved of optimistic economists The Asian e-commerce Ambitious though it may be, Amazon will not have the
of bank agents – operating from small local businesses –
— is assured. There are still many constraints on growth to bring banking services to the 43% of its population that
market to itself. Chinese e-commerce giant Alibaba
which have to be cleared. Ports are still trying to clear market has invested US$2 billion in the region and is present in
still lives on the land19.
the backlog of goods in warehouses⁴. And Western markets including Singapore, Indonesia, Malaysia, the
markets — the main destinations for many Asian goods On average, the B2C e-commerce market in the Over 1.78 billion Asians have some sort of Internet
Philippines, Thailand, and Vietnam15. There is also strong
— are trying to contain the spread of the pandemic by countries covered by this report is growing by 22%, connection⁹. 51% have an Internet-enabled
local competition from sites such as Tokopedia and
staying in. consumers spend $2,181 a year with online merchants, smartphone⁹. The state of connectivity differs greatly
Shopee16.
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from one market to the next and between rural and
urban areas. Any merchant or PSP planning to expand
into Asia will need to understand the context of each
market and of each audience segment within that
market.
Conclusion
Asia Pacific is a fast-growing and highly lucrative
1. Asia and Pacific Regional Economic Outlook: Caught in Prolonged Uncertainty, October 2019, International Monetary Fund
e-commerce market. Merchants entering the region 2. The coronavirus pandemic began in China. Today, it reported no new local infections for the first time, CNN, 19 March 2020
need to plan for the long term. That means thinking 3. This interactive chart shows countries flattening their COVID-19 curves, WEF, 19 March 2020
4. Coronavirus Snarls Trans-Pacific Shipping and Ripples Through U.S. Business, Wall Street Journal, 5 March 2020
about how consumer sentiment and trading conditions
5. Tencent ramps up hiring to meet stay-at-home demand, Nikkei Asia, 17 March 2020
may change over the next few years. But, even in a 6. Coronavirus’s Impact on Consumers and Businesses in China, 26 February 2020, eMarketer
slowdown, there are many millions of consumers in Asia 7. Demand for online grocery and food delivery ticks higher in Singapore amid coronavirus outbreak, CNBC, 28 February 2020
8. South Korean e-commerce firm Coupang stretched by order surge as coronavirus cases jump, Reuters, 4 March 2020
Pacific shopping for leading brands and great products.
9. Original PPRO research
10. 42% of global e-commerce is happening in China. Here’s why, 10 April 2018, Rob Smith, World Economic Forum
11. Amazon enters Southeast Asia with launch of Prime Now fast delivery service in Singapore, 27 July 2017, EDB Singapore
12. Amazon establishes subsidiary in Vietnam, 16 August 2019, Vietnam Plus
13. Amazon in Asia Pacific: A 2019 update, 11 March 2019, Jeff Rajeck, Econsultancy
14. Amazon launches bigger local online store in Singapore, 8 October 2019, Reuters
15. Belt and road on steroids: How Alibaba conquered Southeast Asia, 2 April 2019, Qian Linliang, Financial Review
16. Digital 2019: Leading Online Retailers in Southeast Asia, 18 September 2019, Simon Kemp & Sarah Moey, Data Portal
17. Accelerating Financial Inclusion in South-East Asia With Digital Finance, 2017, Asian Development Bank.
18. India Moves Toward Universal Financial Inclusion, 30 August 2018, CGAP.
19. Toward Universal Financial Inclusion in China, February 2018, The World Bank.
20. Lifting the Barriers to E-Commerce in ASEAN, 2016, A. T. Kearney.
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Regional Payment Trends 76%
74%
Banked
Region World population
World
21%
GDP per capita 8,165 11,299
Australia . . . . . . . . . . . . . . . . . . 10
Credit card
B2C e-commerce 1.7 tr 3.4 tr penetration China . . . . . . . . . . . . . . . . . . 12
Region
B2C e-commerce growth 22% 18% Hong Kong . . . . . . . . . . . . . . . . . . 14
South Korea . . . . . . . . . . . . . . . . . . 30
2%
4% Taiwan . . . . . . . . . . . . . . . . . . 32
9% Thailand . . . . . . . . . . . . . . . . . . 34
1%
5%
Vietnam . . . . . . . . . . . . . . . . . . 36
30% Card Visa
Cash Mastercard
Payment Card
method Bank transfer scheme AMEX
7% Other Other
84%
13%
8 9
Australia 13%
e-commerce growth
5% 53% - Card total
53% ICS
Australia Region World
POLi Payments
10 11
3%
China 24%
e-commerce growth
22%
22% - Card total
22% CUP
China Region World
Average online spend 2,386 2,181 2,594 Airlines & Hotels: 15%
E-commerce % of total retail 24% 20% 16%
USA: 14%
UnionPay
12 13
Hong Kong 12%
e-commerce growth
5% 43% - Card total
29% CUP
Hong Kong Region World 14% ICS
Mastercard
USA: 21% 6% AMEX
67%
Homeware & Furniture: 10%
Other
Japan: 16%
Hong Kong Region
14 15
India 28%
e-commerce growth
7%
32% - Card total
26% ICS
India Region World 6% RuPay
Card 32%
Population 1.4 bn 3.6 bn 7.6 bn Top e-comm segments
Cash 26% 26% - E-wallet total
Population (15+) 982.1 m 2.8 bn 5.6 bn Payment
method
Bank transfer
GDP 2.7 tr 29.1 tr 85.8 tr breakdown 13% PayPal
E-wallet 13% Other
GDP per capita 2,016 8,165 11,299
Airlines & Hotels: 16% Other
Online population 466 m 1.8 bn 4.5 bn
18% 17%
Smartphone penetration 36% 51% 58%
Average online spend 428 2,181 2,594 Clothing & Footwear: 13%
E-commerce % of total retail 4% 20% 16%
Mastercard
China: 23%
AMEX
Homeware & Furniture: 9%
Local schemes
Australia: 8% 33%
India Region
16 17
Indonesia 31%
e-commerce growth
7% 17% - E-wallet total
15% PayPal
Indonesia Region World 2% Other
Card 17%
Population 267.7 m 3.6 bn 7.6 bn Top e-comm segments 34%
Cash Payment
Population (15+) 195.4 m 2.8 bn 5.6 bn
method
Bank transfer
GDP 1 tr 29.1 tr 85.8 tr breakdown
E-wallet
GDP per capita 3,894 8,165 11,299
Electrical goods: 17% Other
Online population 146.4 m 1.8 bn 4.5 bn
29%
13%
Smartphone penetration 60% 51% 58%
Average online spend 360 2,181 2,594 Airlines & Hotels: 16%
E-commerce % of total retail 4% 20% 16%
18 19
Japan 9%
e-commerce growth
3% 11%
68% - Card total
35% JCB
Japan Region World 33% ICS
Average online spend 1,666 2,181 2,594 Food & Drink: 18%
E-commerce % of total retail 9% 20% 16%
1%
52% Mastercard
USA: 29%
AMEX
Health & Beauty: 7%
19% Local schemes
South Korea: 12%
Japan Region
Other
2%
20 21
Malaysia 39%
e-commerce growth
6%
5%
Mastercard
USA: 7% 59%
AMEX
Health & Beauty: 9%
South Korea: 4%
Malaysia Region
Maybank2U
22 23
3%
55% ICS
New Zealand Region World 17%
Average online spend 1,997 2,181 2,594 Food & Drink: 10%
3%
E-commerce % of total retail 8% 20% 16%
3%
Banked Credit card Internet 0.7 bn 6%
population penetration penetration Clothing & Footwear: 10% Cross-border e-commerce value
Card
scheme
99% 61% 91%
34% shop cross-border breakdown
76% 14% 50%
Electrical goods: 9%
China: 33% Visa
27%
Mastercard
Australia: 22%
AMEX
64%
Homeware & Furniture: 7%
Other
USA: 19%
New Zealand Region
POLi Payments
24 25
Philippines 27%
e-commerce growth 8%
5%
22%
Philippines Region World
Average online spend 112 2,181 2,594 Clothing & Footwear: 13%
E-commerce % of total retail 2% 20% 16%
1%
Mastercard
22%
USA: 23% 58% AMEX
Health & Beauty: 8%
Local schemes
South Korea: 7%
Philippines Region
Other
2%
7-CONNECT
26 27
1%
Singapore 13%
e-commerce growth
10%
75% - Card total
39% eNETS
Singapore Region World 34% ICS
Card 10% 2% Other
Population 5.6 m 3.6 bn 7.6 bn Top e-comm segments
Cash Payment
Population (15+) 4.8 m 2.8 bn 5.6 bn 4%
method 10% - E-wallet total
Bank transfer
GDP 364.2 bn 29.1 tr 85.8 tr breakdown
E-wallet 5% PayPal
GDP per capita 64,582 8,165 11,299
Airlines & Hotels: 29% Other 5% Other
Online population 4.8 m 1.8 bn 4.5 bn
75%
Smartphone penetration 91% 51% 58%
Average online spend 1,648 2,181 2,594 Clothing & Footwear: 12%
E-commerce % of total retail 6% 20% 16%
2%
DBS PayLah!
28 29
2%
Average online spend 1,604 2,181 2,594 Airlines & Hotels: 18%
E-commerce % of total retail 16% 20% 16%
Mastercard
China: 15%
AMEX
Health & Beauty: 7%
Japan: 13% Other
South Korea Region 4%
24%
Naver Pay
30 31
Taiwan 10%
e-commerce growth
14%
Mastercard
Japan
AMEX
Food & Drink: 9% 67%
USA Other
Taiwan Region
32 33
Thailand 14%
e-commerce growth
12%
26% - Card total
23% ICS
Thailand Region World 26% 2% TPN
Mastercard
Japan: 14%
AMEX
Health & Beauty: 10%
71% Local schemes
USA: 7%
Thailand Region
Other
123 PromptPay
34 35
Vietnam 26%
e-commerce growth
5% 35% - Card total
31% NAPAS
Vietnam Region World 14% 4% ICS
Average online spend 132 2,181 2,594 Clothing & Footwear: 11%
E-commerce % of total retail 1% 20% 16%
Mastercard
China: 25%
AMEX
Health & Beauty: 9%
Japan: 17% Local schemes
Vietnam Region 90% Other
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The Online Payments Almanac
E-commerce insights for the whole world and a breakdown of
over 450 local payment methods is just a few clicks away.
Local Payments.
Worldwide.
PPRO is the world’s leading local payments platform-as-
a-service, removing the complexity of domestic and
cross-border payments for top-tier financial institutions,
payment service providers, and their merchants.
Edgar, Dunn & Company (EDC) uses a combination of sources and methods to support the PPRO Database.
Where possible consistent sources are used for all markets to maintain the highest level of data integrity.
EDC data sources can be split into three main areas:
Using a combination of these data sources allows EDC to best build a complete picture of the market.
The e-commerce market and payment methods develop at a fast pace. We therefore prepare and update our regional and country reports frequently. If you are interested in
obtaining updated versions, please contact us. We also have comprehensive data on all payment methods worldwide. For global e-commerce and market information that meets
your needs, just get in touch with PPRO.
Version 2020.01
Sources:
Edgar, Dunn & Company: Commissioned work
Publicly available online information
This report is provided for your information and publication, and is based on data and information collected from publicly available sources commissioned from Edgar, Dunn &
Company by PPRO. The e-commerce market and payment methods develop at a fast pace, so all content, data, statements and other information contained within this report is
subject to change. PPRO is not responsible or liable for the quality or accuracy of the information in this report nor how this report is subsequently used or published.
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