Southeast Asia’s E-Commerce to Reach New Heights, Driven by Digital Payments and Cross-Border Commerce Growth

The latest InfoBrief by market intelligence firm IDC,  commissioned by global payments platform 2C2P and Antom, revealed Southeast Asia’s  (SEA’s) ecommerce market is projected to reach US$325 billion by 2028, fuelled by the rapid  adoption of digital payments and regional interoperability, unlocking more opportunities in  cross-border commerce for businesses. 

This year’s research paper, “How Southeast Asia Buys and Pays 2025”, marks the fourth  edition of the IDC InfoBrief since 2021. IDC surveyed 600 respondents across six Southeast  Asia (SEA) markets – Indonesia, Philippines, Malaysia, Singapore, Thailand and Vietnam,  examining the evolving digital payments landscape as a whole and in each market.1 As the  fifth largest economy in the world, SEA’s exceptional growth trajectory is largely driven by its  rapidly expanding e-commerce sector, underpinned by increasing digital payment adoption. 

The research explores the region’s evolving digital payments landscape and provides a  market-specific analysis of the payment trends in each market. It also sheds light on how these  trends are reshaping business strategies and laying the foundation for future growth  opportunities in the region. 

Key highlights from the IDC InfoBrief: 

It is critical to have a comprehensive understanding of SEA’s digital payment landscape to  fully tap into this US$325b economy. To maximise reach within local markets, it is essential to  offer customers their preferred payment methods to enhance the overall customer experience  and drive higher conversion rates. 

• Growth in ecommerce digital payments: By 2028, digital payments are expected to  account for 94% of total e-commerce payments in Southeast Asia. The most significant  growth can be seen in domestic payments (97.9%) and mobile wallets (94.9%), which  have been instrumental in expanding the reach of ecommerce in regions that  traditionally relied less on cards. 
• Surge in Real-time payments (RTPs): RTPs will see an exponential growth in 2028,  reaching over US$11 trillion. This is already evident in Singapore, where RTPs like  PayNow are the third most supported payment methods according to surveyed  merchants in 2024. The rise in RTPs in Southeast Asia is largely driven by government  initiatives to reduce cash reliance and to promote lower-cost, fast payment methods  which meet the needs of both consumers and merchants.  
• Dominance of Mobile Wallets and Domestic Payments: Mobile wallets and  domestic payments lead in popularity across Southeast Asia. In 2023, mobile wallets  were the top choice in Indonesia, Malaysia, and Vietnam, while domestic payments  dominated in Singapore and Thailand. This trend continued in 2024, with mobile  wallets being the second most accepted payment method by surveyed merchants in  Singapore and Philippines and the third in Indonesia and Thailand. 

There are also significant opportunities across SEA in intra-SEA cross border commerce.  

• Opportunities in cross-border commerce: Intra-SEA cross-border commerce is  projected to reach $14.6 billion by 2028, a 2.8 times growth from 2023. Notably, except  for Vietnam and Indonesia, average cross-border transaction values per customer  surpass domestic values in SEA markets, highlighting significant opportunities for  businesses operating in the region.  
• Driving cross-border commerce with Regional Payment Connectivity (RPC):  Cross-border commerce is further supported by initiatives such as the RPC, joined by  all six markets in the SEA region. The collaboration aims to strengthen and streamline  inter-country payments, focusing on the development of seamless, efficient, and cost 

effective cross-border transactions. 

• Higher returns in cross-border commerce: For 62% of surveyed SEA merchants  who sold their services and products across borders, such transactions were, on  average, 21% higher than domestic transactions. Merchants stand to reap significant  rewards by looking beyond their shores and building up their capacity to cater to  neighbouring markets. 
• Untapped potential of intra-SEA trade: Despite its promising growth, intra-SEA trade  remains underutilised, accounting for only a small fraction of total cross-border  commerce in each market. To fully capitalise on this, merchants must gain a deeper  understanding of the distinctive operating environments in each market while  leveraging shared advantages. By strategically addressing these factors, businesses  can unlock the full potential of intra-regional trade and drive sustainable growth. 

Agnes Chua, Managing Director of Business and Product Development of 2C2P, stated,  “Southeast Asia’s e-commerce landscape is evolving at a breathtaking pace. Merchants  recognise the immense opportunities this growth brings them in driving e-commerce revenue,  but also acknowledge the increasing complexity it brings to their operations. This includes  common challenges such as customer support and issue resolution, payment gateway  integration and technology issues. At 2C2P, we empower businesses to navigate these  challenges with confidence by delivering payment solutions that simplify operations, enhance  cross-border capabilities, and drive growth in the region’s rapidly expanding digital economy  so merchants can quickly unlock new opportunities and thrive in this dynamic environment.

Gary Liu, General Manager of Antom, Ant International, said, “Southeast Asia is rapidly  emerging as a global hub for digital commerce and innovation. As businesses expand across  borders, seamless and efficient transactions are essential for maintaining competitiveness. At  Antom, we see payments not just as infrastructure but as a catalyst for business growth. By  working with 2C2P and other businesses within Ant International’s ecosystem, we empower  merchants with unified payment and digitisation solutions covering the full payment lifecycle  while also exploring opportunities in global account services, financing, and treasury  management to further support their expansion. Through close collaboration with local  regulators and industry partners, we aim to unlock new opportunities for businesses of all  sizes, helping them thrive in Southeast Asia’s evolving digital economy.”