Payments technology company, Worldpay, predicts that eCommerce across Asia-Pacific will continue to grow significantly in 2019 and beyond. Asia-Pacific is eCommerce’s leading region globally and stands at the forefront of payment innovation, particularly in terms of mobile commerce and the rise of frictionless, invisible payments.
According to Worldpayâ€™s predictions, Asia-Pacific will lead the way in the global transition to mobile commerce, which is set to become the most popular online channel over the next four years in a number of Asia-Pacific markets, including Hong Kong, Singapore, Australia, and India. Mobile commerce is already the most popular transaction method in both South Korea and China.
Worldpay also sees Asian consumersâ€™ increasing demand for frictionless payments and payment experiences, particularly as the popularity of eWallets continues to soar. There will be a dramatic shift from cash to eWallets at Point of Sale (POS) over the next four years, with eWallets set to grow from 27% of POS market share in 2018 to 42% by 2022.
On the eCommerce side, Asia-Pacific will continue to lead the world in the adoption of eWallets, which will account for two-thirds of regional payment volume by 2022.
Phil Pomford, general manager for Asia Pacific, Global Enterprise eCommerce at Worldpay commented, â€śWith some of the highest rates of smartphone penetration in the world and a preference for digital payment methods like eWallets, itâ€™s no surprise that consumers in Asia-Pacific are eager for more opportunities to enjoy the shopping experiences they love via innovative new channels.â€ť
He added, â€śIn 2019, itâ€™s more important than ever for merchants to tailor their mix of payment methods to match the preferences of local shoppers. The most important advice for retailers is providing a consistent overall retail experience that matches brand attributes, so that consumers can enjoy seamless and secure shopping and payments from desktop, to mobile, to bricks-and-mortar.â€ť
Across specific markets in Asia-Pacific, Worldpay expects the following trends to emerge:
- Hong Kongâ€™s eCommerce market is poised to increase by 11% in 2019 to reach USD$17.9 million. Mobile commerce is set to become Hong Kongâ€™s most popular online shopping channel in the next 12 months, at which point mobile is projected to account for over 50% of all online sales.
- Hong Kong will continue to stay ahead of the pack in adopting alternative, cashless payments such as eWallets. Rising at a rate of 17% year-on-year, eWallets are forecasted to make up 27% of Hong Kongâ€™s eCommerce market in 2019.
- The eCommerce market in China is set to increase by 41% by 2022, reaching USD$1.78 trillion.
- In China, online retail, social communication and payments are seamlessly integrated â€“ and consumers are ready for the next generation of frictionless, invisible payments. The rise of â€śnew retailâ€ť concepts such as Alibabaâ€™s Hema Supermarkets will continue to influence shopper demands for seamless retail between online to offline.
- Seamless shopping is made largely possible through eWallets, which will continue to grow and dominate Chinaâ€™s eCommerce market. Currently 63% of eCommerce sales use eWallets and they are set to grow at a rate of 13% CAGR, forecasted to become a whopping 85% of the market in 2022.
- The eCommerce market in Singapore is set to grow by 48% by 2022 to USD$7.4billion.
- Desktop sales are projected to remain stagnant, while mobile is growing at 13% CAGR. Mobile commerce is on track to overtake desktop sales this year, at which point it will make up 52% of all online sales.
- eWallets are also continuing to grow at a rate of 14% CAGR. Currently 10% of the market, eWallets are forecasted to make up 13% by 2022. While they are on track to become 9% of the POS market by 2022.Â
- Consumers in India have found eCommerce to be inconvenient but that is starting to change with mobile commerce adoption and simpler payment methods such as eWallets. Indiaâ€™s eCommerce market is predicted to increase by 116% between now and 2022, reaching USD$94.9 billion â€“ a 21% CAGR.
- Mobile is the fastest growing channel at 28% CAGR. Desktop is growing at a rate of 14% per annum. mCommerce is on track to overtake desktop in 2020, projected to make up 52 % of sales.
- eWallets are set to maintain their crown as the most popular online payment method, growing at a rate of 28%CAGR. By 2022, eWallets will become 44% of the eCommerce market, from 26% in 2018.
- The eCommerce market in Australia is set to grow by 37% in the next four years, demonstrating an 8% CAGR, eventually hitting USD$43.6 billion in 2022.
- Desktop sales are set to remain stagnant but mobile is forecasted to grow 17% per annum. Mobile commerce is projected to overtake desktop sales by 2020, to make up 54% of all eCommerce sales.
- Australian consumers lean toward convenience, so while credit cards remain the top payment option, eWallets are catching up. By 2022, eWallets will make up 25% of the eCommerce market in Australia, up 7% on 2018 â€“ growing at a rate of 9%CAGR.