According to a GlobalData report, alternative payments are the most popular payment tool for e-commerce payments in Asia Pacific (APAC), with payment solutions such as mobile and digital wallets replacing traditional payment methods such as cash and bank transfers. Alternative payments will account for nearly two-thirds of total e-commerce payments in the region in 2023, with China leading the way in 2023.
It is popular in countries such as China and India.
Shivani Gupta, senior banking and payments analyst at GlobalData, said: “While most Asian markets are traditionally cash-centric, many markets in the region are seeing increased adoption of alternative payment methods for both online and in-store payments outpacing the West. This trend is driven by increasing smartphone and internet accessibility, the increasing convenience of electronic payments, and the widespread adoption of mobile and QR code-based payment solutions.”
In this region, China and India have higher adoption rates compared to other countries. According to GlobalData's 2023 Financial Services Consumer Survey, alternative payment solutions account for over 65% of e-commerce transaction value in China, up significantly from 53.4% in 2018. China leads the market as mobile wallets such as Alipay and WeChat Pay are now widely used for everyday transactions in China.
Meanwhile, India reaches the second position with the fastest growth in alternative payments share in the region from 20.4% in 2018 to 58.1% by 2023. This significant adoption of alternative payment solutions is primarily due to the widespread use of mobile wallets, driven by UPI, which allows real-time mobile payments with the simple scan of a QR code.
Other Asian markets such as Indonesia, Hong Kong, Singapore and the Philippines are also seeing increased adoption of alternative payment solutions.
Shivani Gupta further added, “Alternative payment solutions have captured a significant share of the e-commerce market in many Asia Pacific countries, driven by rising internet and smartphone penetration and growing acceptance of digital payments by retailers. The convenience, speed and security that these payment tools offer, combined with the expected high overall growth in the e-commerce market in the region, are expected to further increase their adoption and revolutionize the consumer payments sector in the region.”
