Study: Developed markets prefer cashless route, while others lean towards eWallets

Developed markets such as Singapore and Hong Kong rely heavily on credit and debits cards as preferred payment methods, according to the latest survey of Reprise.  Other markets include Japan (48%), South Korea (60%), and Australia (56%). 

However developing Asia markets where a large portion of the population is still unbanked prioritise cash such as India (21%), Philippines (46%), Malaysia (38%), Thailand (22%), and Vietnam (34%), but these markets also looks towards more homegrown solutions like e-wallets (21%).

The research also showed that 25% of APAC shoppers still prefer a physical retail experience for the ability to touch and feel the product, and to ask questions of a salesperson.

But when asked why they prefer shopping in marketplaces, the top two reasons cited were cheaper prices (58%) and deals and promotions (35%). However there is one type of marketplace where this is different; the fashion and beauty marketplaces attract consumers for less functional reasons.

The research also revealed that customer support and loyalty programmes are of increasing importance to consumers who are attracted to perks such as points accumulation (55%), and priority shipping (41%%). The survey concluded that in order to move away for functional benefits, brands must focus on winning the hearts and minds of consumers by leveraging customer service, and unique loyalty programmes.

Consumer behaviours have changed drastically in the last decade and accelerated further into the online space due to the pandemic. While fashion continues to dominate online purchases at 77%, high ticket categories such as personal electronics (73%), consumer electronics (63%), and kitchen appliances (59%) are all now predominately bought online, according to the survey. Auto and auto parts prove to be the only exception (33%), but even this category is slowly catching up.

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