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Massive APAC eCommerce growth predicted for 2019

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 Worldpay’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 consumers’ 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, “With some of the highest rates of smartphone penetration in the world and a preference for digital payment methods like eWallets, it’s no surprise that consumers in Asia-Pacific are eager for more opportunities to enjoy the shopping experiences they love via innovative new channels.”

He added, “In 2019, it’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.”

Across specific markets in Asia-Pacific, Worldpay expects the following trends to emerge:

Hong Kong

  • Hong Kong’s eCommerce market is poised to increase by 11% in 2019 to reach USD$17.9 million. Mobile commerce is set to become Hong Kong’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 Kong’s eCommerce market in 2019.

China

  • 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 – and consumers are ready for the next generation of frictionless, invisible payments. The rise of “new retail” concepts such as Alibaba’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 China’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.

Singapore

  • 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. 

India

  • 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. India’s eCommerce market is predicted to increase by 116% between now and 2022, reaching USD$94.9 billion – 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.

Australia

  • 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 – growing at a rate of 9%CAGR.

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