The e-commerce market in Asia-Pacific (APAC) is one of the fastest growing as consumer appetite for online and mobile shopping continues to see extreme progress in the coming year and beyond.
Payments company Worldpay predicts the following for the APAC e-commerce market:
1) By 2021 credit card payments in APAC are forecast to fall from 30% of the total e-commerce market to 10%
2) E-wallets are set for strong growth and are expected to eclipse credit cards and become the most popular payment method for online transactions, taking 51% of the market by 2021
3) The rapid growth of e-wallets will help fuel the APAC m-commerce market, which is projected to rise at an annual average of 12% annually and be worth US$2,100 billion by 2021.
Additionally, Worldpay foresees e-commerce in China will continue to soar, reaching US$1,559 billion by 2021 and China is poised to be at the forefront of new payment innovations, with 93% of consumers already saying they want the opportunity to make purchases in a virtual reality (VR) environment.
In Singapore, m-commerce will become increasingly important – overtaking desktop shopping to reach US$4 billion by 2021.
Meanwhile, e-wallets are catching up to credit cards in Hong Kong and are set to make up more than a quarter of the territory’s online payments market (28%) by 2021, according to Worldpay.
The popularity of e-wallets and bank transfers are also slated to rise in India, as credit cards are expected to decline from 12% to 8% market share by 2021.
Phil Pomford, general manager for Asia-Pacific at Worldpay, said: “Once again, Asia-Pacific is at the forefront of emerging global trends, as consumers here lead the charge in demanding more opportunities to use alternative payment methods online. While there are significant variations in how consumers in different Asian markets prefer to pay, a constant is that they are shifting away from more traditional options like credit and debit cards, and instead choosing e-wallets, bank transfers and cash on delivery.”
In order to keep up with changing market conditions and respond to varying consumer payment preferences from market to market, online merchants should support a wide range of payment options, he advised. “By giving online shoppers the chance to pay via their favourite method, businesses will create a consistent, streamlined checkout experience which is capable of converting browsers into buyers and fostering long-term loyalty amongst local and cross-border shoppers.”