Asia Pacific Payment Trends

All of the contents and information contained throughout the entirety of this Sub Menu Page, is representative of ‘certain excerpt materials’ taken from: “The Worldpay (from FIS) Global Payments Report 2021”

 

ASIA-PACIFIC

PAYMENT TRENDS

COVID-19 caused disruptions to commerce across Asia-Pacific (APAC) in 2020. It imposed compound shocks to the economy: the direct costs of pandemic management, substantial costs resulting from lockdowns and other containment measures, and reverberations from a recession of global scope.

Payment method trends accelerated toward digital solutions throughout APAC in 2020. As commerce shifted from the point of sale to e-commerce, consumers shifted payment preferences to digital methods. Digital and mobile wallets continued to gain in popularity as consumers turned away from cash at historic rates.

APAC e-commerce: Today’s window into a global digital future
E-commerce is projected to grow 13% annually through 2024. In 2020, APAC e-commerce transaction value exceeded U.S.$2.4 trillion and is projected to exceed U.S.$3.9 trillion by 2024. Expansion will be driven largely by mobile commerce, growing from 59.3% of regional e-com in 2020 to 64.1% by 2024.

Growth in China’s e-commerce market will continue through 2024 with 14.1% projected annual growth. By 2024, China’s e-commerce transaction value will exceed U.S. $3.1 trillion, larger than the rest of APAC combined. APAC e-com growth rates through 2024 will range from a high of 19.1% in Indonesia to a low of 7.5% in Japan. Indonesia, Vietnam, The Philippines and India will all see e-com growth rates above 15% through 2024, with less than 10% growth projected for the more mature economies of Australia, Japan, New Zealand and Singapore.

Digital wallets continued to dominate APAC e-commerce payments. In 2020, digital wallets exceeded 60% of APAC e-com payment methods, increasing slightly from 58.4% in 2019. China continues to lead globally in digital wallet use accounting for 72.1% of 2020 e-com payments. Driven by local brands, digital wallets have ascended to be the leading e-com payment method in India (39.7%) and Indonesia (29.3%), while approaching the lead in Australia (24.1%), Hong Kong (28.9%) and New Zealand (20%).

Credit cards maintained a strong second place position with 19.1% of e-com payments, despite falling slightly from 20.1% in 2019. They remain the leading payment method in half of the APAC countries included in our report, including dominant positions in Japan (58.2%), South Korea (57.4%) and Singapore (45.3%). Debit card use in APAC jumped 38.1% in 2020, rising from 4.2% in 2019 to 5.8% of 2020 e-com payments, with consumers using debit more often to pay for smaller value purchases due to the pandemic.

2024 projections include further increases for digital wallets in APAC e-com payments. Digital wallets will increase their dominant lead in e-commerce to 65.4% by 2024, rising to category-leading positions in Australia, Malaysia and The Philippines. Debit cards will also rise from 5.8% of e-commerce payments in 2020 to 7.1% in 2024 on strength in Australia (21.3%), South Korea (20%) and India (18%). Buy now, pay later (BNPL) services will more than double from 2020 to 2024, from 0.6% to 1.3%. These share gains will come largely at the expense of credit cards, bank transfers, cash on delivery (COD) and prepaid cards, all of which will lose share through 2024.

Changing POS preferences
As was the case throughout the world, the economic impacts of COVID-19 were felt most acutely at the point of sale. The pandemic contributed to significant drops in POS transaction values in India (-8.1%), Singapore (-10.4%), Thailand (-9.2%) and Japan (-7.4%).

While the ultimate path of the pandemic globally adds additional uncertainties, strong growth is projected to a recovery of 2019 POS volumes by late 2021 or 2022. China projects 6.2% growth from 2020 through 2024 – including 9.7% growth in 2021 – growing to represent over U.S.$22 trillion in 2024. The Philippines forecasts the largest growth rate regionally through 2024 at 9.4%, followed closely by India (8.9%) and Vietnam (8.8%). The more mature economies of Japan (2.8%), South Korea (4%) and Australia (4.6%) project the lowest POS growth rates through 2024.

Credit cards are the
leading online payment
method in Japan,
South Korea
and Singapore

Payment methods at the point of sale are undergoing a dramatic change away from cash and toward mobile wallets, a global trend led by consumers in APAC with the help of some government initiatives. In Japan, the government actively offered discounts for retail purchases when consumers paid with a non-cash payment method. 1While the shift away from cash was in motion long before 2020, the pandemic greatly accelerated the trend. 2020 witnessed large shifts in POS transactions with cash, dropping from 30.3% in 2019 to 19.2% in 2020, a decline of 36.6%. Sparked by COVID-19, the accelerated decline in the use of cash in 2020 alone exceeded our prepandemic projections for 2023.

Much of the POS spend previously dedicated to cash shifted to mobile wallets. Mobile wallets share increased by 12% in 2020, rising from 35.9% in 2019 to 40.2% in 2020. Mobile wallets approached a three-year acceleration in 2020, nearly reaching the 45.1% projected for 2023. Prepaid cards also gained significant POS share in 2020, rising from 0.8% in 2019 to 3.5% in 2020.

Looking ahead to 2024, we see a continuation of these trends at the point of sale, with cash continuing to decline across the region, projected to fall an additional 43.8% from 2020 to 2024, when cash will represent only 10.8% of transactions. Cash will persist as the leading POS payment method in Indonesia, The Philippines, Vietnam and Japan, yet the decline of cash will be near total in some markets, falling to 5.9% in China, 2.1% in Australia and just 1.6% in Hong Kong.

We project mobile wallets will grow to represent 47.9% of POS spend by 2024. China will continue to lead the way with mobile wallets projected at 57.1% of POS spend, while Taiwan, Thailand and The Philippines will all see mobile wallets experience dramatic growth rates of over 25%. Credit and debit cards will also see steady gains to account in aggregate for one-third of POS spend by 2024.

1NFCW, October 1, 2019. “Japanese government offers discounts to consumers making cashless payments with cards and mobile phones.” https://www.nfcw.com/2019/10/01/364568/japanese-government-offers-discounts-toconsumers-making-cashless-ayments-with-cards-andmobile-phones/

Mobile wallets used

at the POS increased

12%

in 2020

APAC e-com payment methods

APAC e-com payment methods

Numbers adjusted for rounding may impact totals.

**Forecasted

AUSTRALIA

When visiting the land Down Under, purchasing Tim Tams is a must for any visitor. Tourists are likely paying with their local payment preferences, but locals have opted to use less cash in 2020 when making purchases in person. Australians typically prefer to do their online shopping in the evenings. 1When checking out, credit cards and mobile/digital wallets continue to be the most popular and most convenient.

1https://www.businessnewsaus.com.au/articles/new-datareveals-surprising-facts-about-aussie-online-shoppers.html

FAST STATS

2020 Sales %
from e-com

3%

2020 Sales %
from m-com

61%

2020 % e-com spend using
Digital/Mobile Wallet

20%

2020 % POS spend using
Digital/Mobile Wallet

13%

2020* – 2024**
e-com CAGR

17%

2020* – 2024**
POS CAGR

9%

2020* Internet
penetration

72%

2020* Mobile
penetration

69%

FORECAST

2024 % **
sales from e-com

4%

2024 % **
sales from m-com

66%

TOP TIP

The pandemic has driven a range of behavior changes, from what consumers buy to how they prefer to pay. A preference for debit payments has increased as consumers begin to think about the best ways to manage funds. The different buy now, pay later (BNPL) offerings have also expanded to meet this need, with new offers seeking to align to specific purchase types, consumers and budgeting preferences.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

CHINA

Home to the second-largest number of billionaires, China has the largest market size in the world and Chinese consumers spend $73 billion on luxury goods alone every year.1Billionaire or not, these consumers pay for most goods and services with digital and mobile wallets, leading the world in adoption. Due to the pandemic, their use of cash at the point of sale dropped dramatically in 2020.

1https://markets.businessinsider.com/news/stocks/chinaeconomy-facts-2019-5-1028172022#

FAST STATS

2020 Sales %
from e-com

9%

2020 Sales %
from m-com

63%

2020 % e-com spend using
Digital/Mobile Wallet

72%

2020 % POS spend using
Digital/Mobile Wallet

50%

2020* – 2024**
e-com CAGR

14%

2020* – 2024**
POS CAGR

6%

2020* Internet
penetration

59%

2020* Mobile
penetration

74%

FORECAST

2024 % **
sales from e-com

12%

2024 % **
sales from m-com

67%

TOP TIP

Payment services are diversifying with the approval for American Express and Mastercard to now process cards in China. Businesses may need to work with their payment providers to ensure they can accept payments under these new card brands. In order to advance towards a cashless society, the Chinese government has also launched a national digital currency (DCEP). This digital currency is projected to boost e-commerce development in the coming years, so partnering with a knowledgeable payment processor will help brands build a smooth checkout process for the consumer.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

HONG KONG

Hong Kong is a food lover’s paradise with more restaurants per capita than any other market in the world. 12020 marked the year for Hong Kong consumers to transfer their debit card into a mobile/digital wallet to take advantage of a contactless experience when dining out or shopping in person. Consumers lean heavily toward card usage when checking out online, but in order to get high conversion rates, businesses need to localize the online experience by language and currency.

1https://expatliving.hk/25-fun-facts-about-hong-kong/

FAST STATS

2020 Sales %
from e-com

10%

2020 Sales %
from m-com

57%

2020 % e-com spend using
Digital/Mobile Wallet

29%

2020 % POS spend using
Digital/Mobile Wallet

22%

2020* – 2024**
e-com CAGR

9%

2020* – 2024**
POS CAGR

6%

2020* Internet
penetration

89%

2020* Mobile
penetration

86%

FORECAST

2024 % **
sales from e-com

11%

2024 % **
sales from m-com

66%

TOP TIP

Already a society that relies very little on cash, digital/mobile wallets are in the top checkout preferences for consumers, lagging only behind credit cards. Hong Kong is aiming to make payments simpler and faster through the Hong Kong Monetary Authority Faster Payment System by connecting those in the payments ecosystem. Merchants looking to take advantage of digital acceleration will want to focus efforts on accepting the largest digital wallets, Alipay and WeChat Pay.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

INDIA

Physical retail is alive and well in India, where consumers prefer to touch and feel products before they buy. Until 2020, cash was used to pay more than 70% of the time. The pandemic has started to change those habits and while cash still tops the preference list at 34%, many consumers are shifting to mobile/digital wallets and debit cards. It’s more gratifying for Indian consumers to shop physically, but online retail also continues to increase as infrastructure and technology advancements are made.

FAST STATS

2020 Sales %
from e-com

8%

2020 Sales %
from m-com

53%

2020 % e-com spend using
Digital/Mobile Wallet

40%

2020 % POS spend using
Digital/Mobile Wallet

22%

2020* – 2024**
e-com CAGR

16%

2020* – 2024**
POS CAGR

9%

2020* Internet
penetration

41%

2020* Mobile
penetration

64%

FORECAST

2024 % **
sales from e-com

10%

2024 % **
sales from m-com

62%

TOP TIP

The pandemic has accelerated the drive towards a cashless society with cash declining 36% at the point of sale in 2020. As a result, digital wallet companies like Paytm are experiencing strong growth. For businesses that haven’t yet incorporated digital/mobile wallet acceptance at checkout, the time is now. WhatsApp Pay was also recently launched in India, giving consumers an additional option to pay seamlessly.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

INDONESIA

Jakarta, the Big Apple of Southeast Asia, is a shopper’s paradise containing one of the world’s largest shopping malls. Due to the global pandemic, consumers in Indonesia greatly reduced their use of cash in 2020 and migrated to digital/mobile wallets when heading out to shop. Digital/mobile wallets also rose to the top preference for online checkout, which comes in handy when consumers participate in major shopping days, often coinciding with holidays popular in China.

FAST STATS

2020 Sales %
from e-com

8%

2020 Sales %
from m-com

61%

2020 % e-com spend using
Digital/Mobile Wallet

29%

2020 % POS spend using
Digital/Mobile Wallet

17%

2020* – 2024**
e-com CAGR

19%

2020* – 2024**
POS CAGR

7%

2020* Internet
penetration

63%

2020* Mobile
penetration

75%

FORECAST

2024 % **
sales from e-com

12%

2024 % **
sales from m-com

68%

TOP TIP

Indonesian e-commerce is considered to have one of the highest growth rates in Asia-Pacific. Due to restricted travel throughout the pandemic, many consumers increased their purchasing of items like clothes or gadgets. These shifts have shined new light on logistics and delivery challenges, especially in more rural areas. Merchants who can make the delivery experience more seamless will be prepared for future growth.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

JAPAN

Japan is a leader in integrating artificial intelligence into their daily lives and Tokyo ranks as the third most expensive city to live in the world. 1Despite their technological advances, Japanese consumers still prefer to pay with cash when checking out at the point of sale. When shopping online, credit cards top the list at nearly 60%. Their preferences for cash and credit cards likely make it easier to manage a budget when living in expensive markets.

1https://www.mercer.com/newsroom/2020-cost-of-living.html

FAST STATS

2020 Sales %
from e-com

10%

2020 Sales %
from m-com

27%

2020 % e-com spend using
Digital/Mobile Wallet

11%

2020 % POS spend using
Digital/Mobile Wallet

4%

2020* – 2024**
e-com CAGR

8%

2020* – 2024**
POS CAGR

3%

2020* Internet
penetration

94%

2020* Mobile
penetration

84%

FORECAST

2024 % **
sales from e-com

11%

2024 % **
sales from m-com

29%

TOP TIP

QR-code payments continue to be popular among the Japanese, in part supported by a government initiative to go cashless. The program covers a rebate scheme where shoppers earn points that can be redeemed at participating stores. Many e-commerce merchants are also beginning to incorporate QR codes into their checkout process to engage participating consumers.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

MALAYSIA

Malaysia’s thriving retail scene includes a growing number of shopping malls and specialty centers. While shopping, it’s digital forms of payment that lead for consumers. Cash is still the preference for point of sale checkout but they’re adopting more contactless experiences using credit cards and digital/mobile wallets. These options are also gaining in popularity online and beginning to catch up to bank transfers.

FAST STATS

2020 Sales %
from e-com

5%

2020 Sales %
from m-com

59%

2020 % e-com spend using
Digital/Mobile Wallet

14%

2020 % POS spend using
Digital/Mobile Wallet

13%

2020* – 2024**
e-com CAGR

14%

2020* – 2024**
POS CAGR

6%

2020* Internet
penetration

81%

2020* Mobile
penetration

78%

FORECAST

2024 % **
sales from e-com

7%

2024 % **
sales from m-com

65%

TOP TIP

Traditionally a cash-dominant society, the pandemic has accelerated Malaysia’s push towards electronic payments. Consumers are increasingly using digital channels to make payments and migrating away from cash. Even when shopping in-store, more consumers began to check out with a mobile or digital wallet to take advantage of the contactless nature. To support this rapid adoption, the government has offered a preloaded amount of RMB50 when customers sign up to a specific mobile/digital wallet.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

NEW ZEALAND

New Zealand has a very small human population percentage at only 5%. 1That makes it the country with the highest animal to human ratio in the world even though the country is actually larger than the UK. These consumers prefer paying with cards over cash when out shopping or checking out online. Credit and debit cards are often the most reached for, likely due to benefits like loyalty and reward programs.
1https://www.globotreks.com/destinations/new-zealand/33-quirky-facts-new-zealand/

FAST STATS

2020 Sales %
from e-com

8%

2020 Sales %
from m-com

47%

2020 % e-com spend using
Digital/Mobile Wallet

20%

2020 % POS spend using
Digital/Mobile Wallet

5%

2020* – 2024**
e-com CAGR

8%

2020* – 2024**
POS CAGR

5%

2020* Internet
penetration

91%

2020* Mobile
penetration

83%

FORECAST

2024 % **
sales from e-com

9%

2024 % **
sales from m-com

61%

TOP TIP

In 2020, many consumers began to look for options that would help them manage installment payments, such as buy now, pay later (BNPL), which reduces purchasing risk for consumers since they can spread out interest-free payments. The pandemic also facilitated wider public acceptance of QR-based interfaces and even alternative debit types such as Electronic Funds Transfer at Point of Sale (EFTPOS) are beginning to pilot mobile-based payments.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

PHILIPPINES

The Philippines contain three of the world’s top ten largest shopping malls, making it possible to serve millions of consumers at the same time. 1When they head out to shop, they’re most often bringing cash with them. But digital/mobile wallet use has more than doubled over the last year as shoppers looked for a more contactless experience. Online checkout transactions are also changing as consumers shift from cash on delivery to credit card and digital/mobile wallets.
1https://www.factretriever.com/philippines-facts

FAST STATS

2020 Sales %
from e-com

3%

2020 Sales %
from m-com

61%

2020 % e-com spend using
Digital/Mobile Wallet

20%

2020 % POS spend using
Digital/Mobile Wallet

13%

2020* – 2024**
e-com CAGR

17%

2020* – 2024**
POS CAGR

9%

2020* Internet
penetration

72%

2020* Mobile
penetration

69%

FORECAST

2024 % **
sales from e-com

4%

2024 % **
sales from m-com

66%

TOP TIP

To compete with neighboring countries, the Philippines is looking to advance digital payments at a faster rate. Digital payments through mobile/digital wallets are gaining tremendous traction, more than doubling at the point of sale and increasing 25% online. Merchants looking to implement acceptance and get ahead of the digital curve will want to enable local options such as GCash, PayMaya and PayPal.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

SINGAPORE

One of the world’s greenest cities offers something to celebrate nearly year-round. Its rich diversity of races and cultures with individual traditions and customs make it a great place to explore. Whether consumers are celebrating Chinese New Year, Diwali or Hari Raya, they have preferences for how they pay in-person and online. They’re most often paying with a credit card anytime they checkout. Digital wallets and buy now, pay later (BNPL) are gaining in popularity as consumers explore different checkout choices.

1https://www.factretriever.com/philippines-facts

FAST STATS

2020 Sales %
from e-com

6%

2020 Sales %
from m-com

55%

2020 % e-com spend using
Digital/Mobile Wallet

20%

2020 % POS spend using
Digital/Mobile Wallet

11%

2020* – 2024**
e-com CAGR

8%

2020* – 2024**
POS CAGR

5%

2020* Internet
penetration

88%

2020* Mobile
penetration

85%

FORECAST

2024 % **
sales from e-com

6%

2024 % **
sales from m-com

60%

TOP TIP

Singapore has an ambitious goal to become a cashless society by the year 2025 and there are government initiatives taking shape to support traditional retailers with implementing acceptance of digital payments. Many businesses continue to shift their focus to e-commerce and speeding up the checkout process. Some retailers have adopted online to offline, where orders and payments are ompleted online with the option of selecting collection at their preferred time. The hawker centers that once only accepted cash
are pivoting towards accepting digital payments.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

SOUTH KOREA

Online shopping can be cumbersome since the government passed a law requiring all shoppers to install ActiveX plug-ins as proof of ID. While the government has acknowledged the challenges and is working on a new solution, consumers aren’t deterred. E-commerce has grown just over 30% in the last two years with credit cards continuing to be the payment method of choice online and at the point of sale.

FAST STATS

2020 Sales %
from e-com

8%

2020 Sales %
from m-com

65%

2020 % e-com spend using
Digital/Mobile Wallet

17%

2020 % POS spend using
Digital/Mobile Wallet

8%

2020* – 2024**
e-com CAGR

12%

2020* – 2024**
POS CAGR

4%

2020* Internet
penetration

96%

2020* Mobile
penetration

92%

FORECAST

2024 % **
sales from e-com

10%

2024 % **
sales from m-com

70%

TOP TIP

A strong banked population, high financial awareness and a desire for digital acceleration have driven payment card adoption in South Korea. Spurred on by the pandemic, consumers are shifting to contactless payment cards or mobile wallets with NFC features. There is also strong support from the South Korean government to boost consumer spending digitally through the recent payout in the form of points to households’ credit card accounts. Those points can then be used for payments at selected merchants.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

TAIWAN

Taiwan is on a mission to become an eco-friendlier place and plans to become a single-use plastic free market by 2030. That means no more straws, plastic shopping bags or disposable utensils. However, it doesn’t apply to payment plastic. Credit cards have long reigned for online checkout but 2020 saw them move to the top of the list at the point of sale. Digital/mobile wallets are also on the rise as consumers look for less contact at the checkout counter.

FAST STATS

2020 Sales %
from e-com

10%

2020 Sales %
from m-com

51%

2020 % e-com spend using
Digital/Mobile Wallet

16%

2020 % POS spend using
Digital/Mobile Wallet

14%

2020* – 2024**
e-com CAGR

9%

2020* – 2024**
POS CAGR

6%

2020* Internet
penetration

93%

2020* Mobile
penetration

86%

FORECAST

2024 % **
sales from e-com

11%

2024 % **
sales from m-com

58%

TOP TIP

Taiwan has traditionally been a closed-loop market when it comes to payments. A large portion of card payments are processed through the local card brand Smartpay and even the most popular mobile/digital wallets are local to Taiwan. Mobile and digital wallets more than doubled at the physical point of sale in 2020 so merchants will want to enable acceptance of popular brands such as Line Pay and 7-11 Ibon to take advantage of the digital shift early.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

THAILAND

Crowded markets, shopping malls, floating markets, fresh markets and street fairs… There’s something for everyone when shopping in Thailand. Consumers can find anything from souvenirs to designer must-haves. Fruit soaps and elephant themes are popular trends. When it comes to payment trends, bank transfer continues to top the e-commerce market at 31% while cash (62%) is still the choice for point-of-sale purchases. Keep an eye out for digital payments as consumers are migrating their credit cards into digital/mobile wallets.

FAST STATS

2020 Sales %
from e-com

13%

2020 Sales %
from m-com

60%

2020 % e-com spend using
Digital/Mobile Wallet

19%

2020 % POS spend using
Digital/Mobile Wallet

20%

2020* – 2024**
e-com CAGR

10%

2020* – 2024**
POS CAGR

5%

2020* Internet
penetration

82%

2020* Mobile
penetration

76%

FORECAST

2024 % **
sales from e-com

15%

2024 % **
sales from m-com

65%

TOP TIP

Digital payments are beginning to enter the forefront at the point of sale due to the pandemic. Consumers rapidly began to adopt mobile/digital wallets, nearly tripling adoption from 2019. Online, consumers most frequently checkout with bank transfer so merchants will need a variety of options to capture the preferences of all generations, online and at the POS. With a low credit card penetration rate, local mobile/digital wallets linked to respective bank accounts are a more favorable alternative for contactless payments.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods

VIETNAM

The second largest coffee exporter in the world, Vietnam is also home to one of the top 10 most expensive coffees in the world: weasel coffee or Kopi Luwak. 1While you may not be able to try this expensive coffee on a floating market, you can get a cup of coffee or tea on one. And if you ever see a bamboo stick with the coconut leaf attached, it means the boat is for sale. Whether consumers are buying coffee or a boat, cash is the preferred payment method, in-store or online. However, credit cards and digital/mobile wallets are continuing to rise in popularity at the point of sale.

1https://12go.asia/en/vietnam/interesting-fact

FAST STATS

2020 Sales %
from e-com

29%

2020 Sales %
from m-com

60%

2020 % e-com spend using
Digital/Mobile Wallet

21%

2020 % POS spend using
Digital/Mobile Wallet

12%

2020* – 2024**
e-com CAGR

19%

2020* – 2024**
POS CAGR

9%

2020* Internet
penetration

70%

2020* Mobile
penetration

72%

FORECAST

2024 % **
sales from e-com

37%

2024 % **
sales from m-com

68%

TOP TIP

Amid the pandemic, digital payments have soared in Vietnam primarily at the point of sale. The use of cash declined by 32% and mobile/digital wallets tripled from 2019. Online, consumers looked to bank transfer and mobile/digital wallets at checkout. Retailers looking to provide options to consumers and accept digital wallets will want to accept methods such as MoMo and PayPal.

2020 e-com mix by payment method

2020 point of sale mix by payment method

* Estimated   **Forecasted
Numbers adjusted for rounding may impact total.

2019 card brand breakdowns (e-com and POS)

POS and e-com projected growth

Popular alternative payment methods