THE e-commerce market in Southeast Asia (SEA) is expected to soar to US$325 billion by 2028, according to the latest InfoBrief by market intelligence firm IDC.
The research paper, How Southeast Asia Buys and Pays 2025, highlights the rapid adoption of digital payments and enhanced regional interoperability as key factors fueling this expansion, unlocking fresh opportunities for businesses engaged in cross-border commerce.
Commissioned by global payments platform 2C2P and Antom, IDC surveyed 600 respondents across six SEA markets—Indonesia, the Philippines, Malaysia, Singapore, Thailand and Vietnam.
Digital payments driving growth
Survey results revealed that by 2028, digital payments are expected to make up 94 percent of all e-commerce transactions in the region. Domestic digital payment methods are forecasted to account for 97.9 percent, while mobile wallets will contribute 94.9 percent, expanding e-commerce accessibility in traditionally cash-reliant markets.
The use of real-time payments (RTPs) is also forecasted to skyrocket, surpassing $11 trillion by 2028.
Already gaining traction in Singapore—where PayNow ranks as the third most popular payment method in 2024—RTPs are being driven by government-led initiatives aimed at reducing cash dependency and promoting cost-efficient, fast transactions.
Mobile wallets have become the preferred payment method in Indonesia, Malaysia, and Vietnam, while domestic payments remain dominant in Singapore and Thailand. In 2024, mobile wallets ranked as the second most accepted payment method among merchants in Singapore and the Philippines and the third in Indonesia and Thailand.
Opportunities in intra-regional e-Commerce
Moreover, the study revealed that SEA’s intra-regional e-commerce market is projected to reach $14.6 billion by 2028, marking a 2.8x increase from 2023. Notably, aside from Vietnam and Indonesia, cross-border transaction values per customer exceed domestic values, signaling lucrative opportunities for businesses targeting regional trade.
All six SEA markets have joined the Regional Payment Connectivity (RPC) initiative, which aims to streamline inter-country transactions and facilitate seamless, cost-effective cross-border payments.
Among surveyed SEA merchants engaged in cross-border sales, the average transaction value was 21 percent higher than domestic sales. Businesses that invest in cross-border e-commerce solutions stand to gain significantly by expanding into neighboring markets.
Despite strong growth projections, intra-SEA trade still comprises a small share of total cross-border commerce. To fully capitalize on this opportunity, businesses must tailor their strategies to the unique market conditions within each SEA economy while leveraging regional synergies.
Agnes Chua, managing director of Business and Product Development at 2C2P, emphasized the need for businesses to stay ahead of the evolving e-commerce landscape.
“Merchants recognize the immense opportunities that come with digital payment adoption but also acknowledge challenges such as payment gateway integration and technology issues. At 2C2P, we empower businesses with solutions that enhance cross-border capabilities and simplify operations, enabling them to thrive in SEA’s dynamic digital economy,” she said.
As SEA cements its position as one of the fastest-growing e-commerce markets globally, businesses must align with evolving digital payment trends to remain competitive.
“Southeast Asia is emerging as a global hub for digital commerce. Seamless and efficient transactions are crucial 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 partners, we enable merchants to leverage unified payment solutions while exploring opportunities in global account services, financing, and treasury management,” said Gary Liu, General Manager of Antom, Ant International. / KOC