Jakarta, Gizmologi – It is estimated that digital payment penetration which is growing rapidly in Southeast Asia (SEA) will further drive the popularity of e-commerce which has skyrocketed.
While e-commerce is already booming with 222 million users in 2020, it is estimated to grow further to an estimated 411 million users in 2025, fueled by the emergence of new payment methods.
Digital payment methods such as mobile wallets and buy now pay later (BNPL) are shifting transactional behavior away from incumbent payments such as cash on delivery. These new payment methods offer customers who do not own cards the option to purchase more seamlessly and with greater convenience.
IDC InfoBrief Research about digital payment in SEA
According to IDC InfoBrief, which is supported by 2C2P, it is predicted that there will be an additional quarter of a billion new e-wallet users in Southeast Asia by 2025, with Indonesia as the country with the largest addition of 130 million new users.
In terms of growth, Buy Now Pay Later (BNPL) is no less popular. Indonesia is said to be the largest market for BNPL in Southeast Asia in 2025, with total public spending using BNPL in e-commerce to increase 8.7 times compared to 2020.
Adi Nugroho, Country Head of 2C2P, explained that the evolution of digital payment methods must be quickly pursued by retail players in order to accelerate their business reach. He said that the presence of new options such as e-wallet and BNPL provides access to people who have not previously been touched by conventional financial services. “These millions of new users are a new segment that local businesses need to accommodate,” He said.
From a survey conducted by the International Data Corporation (IDC) in 2021, it was found that the adoption of the latest digital payments will be able to increase merchant sales by an average of 10%.
Adi explained that now the big players in Southeast Asian countries have begun to quickly adapt and pursue the development of alternative payment methods.
Learning from the experiences of 2C2P partners in various countries, Adi recommends a number of steps for retail players when deciding to adopt digital payments such as e-wallet and BNPL.
First, adopt a system that can support various payment methods and can be customized and supports domestic and international payments in various countries. Second, consolidation of offline and online payments (omnichannel) in one platform to optimize company operations.
Third, ensure the scalability of the payment system used, so that it is easy to adapt to changes on the operational side. Last, choosing a payment system provider partner with a high track record in terms of data security
Adi added that the advent of digital payments brings great potential to businesses, in terms of strengthening customer relationships, providing better customer experiences, driving business scale, and expanding markets. However, retail players also need to take into account the heterogeneous payments landscape in Southeast Asia.
“Each country has its own uniqueness, with different levels of internet penetration, levels of financial access, regulations, and user preferences. If this can be addressed properly, the adoption of digital payments will have a significant impact on the company’s performance,” concluded Adi.