Asia Pacific Continues to Lead the World in the Adoption of Local Payment Methods - New Research from Boku Reveals

Boku, the global network for local payment solutions, has released a global research report entitled ‘2024 Global Ecommerce Report: The Changing World of Payments’. The report reveals the increasing preference for local payment methods and the continued decline in the market share of traditional card payments. Produced in collaboration with Juniper Research, the report surveyed 10,500 consumers and analysed data from 37 major markets across the globe to identify global, regional and country specific trends. The findings highlight significant and rapid consumer shifts in ecommerce payments away from the traditional card networks (and in emerging economies cash on delivery) towards local payment methods such as digital wallets. Account to Account (A2A) payments (instant payments and bank transfers) such as PromptPay in Thailand, PayNow in Singapore and PayTo in Australia are revealed as the fastest-growing payment method within ecommerce. Key findings for Asia Pacific:

• Asia Pacific continues to lead the world in the adoption of local payment methods. By 2028, local payment methods within Asia Pacific will represent 69% of ecommerce transactions by value, from 64% in 2023.
• Non-card linked wallets are projected to dominate ecommerce transactions in Asia Pacific, reaching 57% by 2028 (up from 55% in 2023).
• By 2028, over 61% of all individuals within Asia Pacific will actively use local payment methods on a regular basis, reflecting their strong traction in the region.
• Account to Account (A2A) payments, such as PromptPay in Thailand and PayNow in Singapore, are flourishing and expected to rise from 4% of transaction value in 2023 to 8% in 2028.
• Market nuances play a significant role in consumer loyalty to payment methods, emphasising the need for tailored payment strategies.

Comparison with other regions:

• In the U.S. & Canada, credit and debit cards are expected to decline in share, dropping to 29% by 2028, with A2A and BNLP options gaining momentum.
• Latin America anticipates rapid growth in A2A payments, reducing reliance on cards to 24% by 2028, while BNPL is forecasted to grow to 5%.
• Africa & Middle East showcase success in local payments, with non-card-linked wallets projected to account for over 25% of e-commerce payments by 2028.
• The Indian Subcontinent anticipates local payment methods to represent 72% of transactions by 2028, driven by India’s UPI scheme. Europe expects significant growth in lower friction payment methods like BNPL and A2A payments, with cards declining to 21% by 2028.

Payment choice is key for consumers around the world. Today’s mobile-first generations - with whom access to and affinity with card networks is low - prioritise the convenience and seamless nature of paying with digital wallets, direct carrier billing and Instant A2A payments. As with the adoption of many new technologies, the adoption of localised payment solutions by younger generations and populations is paving the way for adoption by older consumers. Nick Maynard, VP of Fintech Market Research, at Juniper Research said, “Our research for this report from Boku highlights that against a backdrop of continued strong growth in ecommerce, the global card schemes (credit, debit and card-linked wallets) continue to lose share to regional and local payment methods. This is a trend seen at an aggregate global level but also repeated in every region across the world." Stuart Neal, CEO of Boku said, “Our research shows Asia Pacific continues to lead the world in the adoption of local payment methods. While card-linked payments remain significant, local payment methods that offer consumers seamless payment experiences, such as digital wallets, direct carrier billing and Account to Account transfers, will continue to win market share. Merchants now realise that the key to their future global growth and success lies in their ability to offer consumers more payment choice to match these changing customer preferences. At Boku, we’re excited to provide the world’s largest merchants with access to our global network of localised payment solutions so their customers can more easily pay for the things they love, the way they want - no matter where they are in the world.” Download the full research report: http://www.boku.com/boku-knows/2024-boku-global-ecommerce-report