Local payment methods in Asia Pacific

Part 1 of the global payment methods guide created by Adyen to help businesses expand globally.

Asia Pacific

Asia Pacific is home to over 4.5 billion people – nearly 60% of the world’s population. It’s a diverse region with seven of the world’s ten most populous countries including China and India.

Although APAC is said to be leading several trends, including ecommerce and mobile payment adoption, it’s also one of the most fragmented regions when it comes to payments.

Understanding APAC's unique payments and cultural landscape will help global businesses take better advantage of the opportunities and enormous potential the region presents.

From a payments perspective, this means that, with the right payments partner, bringing your brand to shoppers in these markets may be easier than you think.

Adyen’s local credit card acquiring licenses in markets including Australia, Hong Kong and Singapore help connect businesses directly to major card schemes.

Quick links

Australia and New Zealand

Australia and New Zealand

Australia is an economic powerhouse in Asia Pacific, and one of world’s top 10 ecommerce giants. Its booming retail and tourism sectors have attracted worldwide attention, making Australia a great option as a base in APAC for global companies.

When it comes to payments, over 50% of retail transactions in Australia are made with credit and debit cards.

Similarly, card payments are popular in nearby New Zealand with approximately 1.5 billion electronic card transactions made annually. While cash remains an important method, New Zealand has the lowest proportion of cash to GDP in circulation in the world.

Popular payment methods in Australia and New Zealand

Ewallets
American Express
Visa
Mastercard
AfterPay
Zip
EFTPOS

China

China is the biggest retail ecommerce market in the world, expected to reach US $1.7 trillion. The country is a driving force behind mobile commerce (mcommerce).

The top three payment methods are Alipay, UnionPay and WeChat Pay.

Popular payment methods in China

Alipay

With around 50% payments market share, Alipay is the largest local payment method in China. It’s owned by ecommerce conglomerate Alibaba and provides payment services for major Alibaba ecommerce platforms such as Taobao and Tmall, as well as over 400,000 Chinese businesses. It’s simple to set up Alipay, and your shoppers can enjoy a frictionless experience whether they’re shopping online, on mobile or in store.

UnionPay

UnionPay is the largest card scheme in the world by number of cards issued. It’s also the only interbank network in the market (excluding Hong Kong and Macau) linking the ATMs of 14 major banks and many smaller banks throughout Mainland China. Owned by the central bank, it has a monopoly on processing CNY-denominated transactions in China. This makes UnionPay a vital part of the payments mix for Chinese shoppers.

WeChat Pay

WeChat Pay is China’s fastest growing payment method. It forms part of the WeChat ecosystem, which is a social network, work collaboration tool, and commerce platform rolled into one. WeChat Pay is supported online, on mobile and in store. Transactions take place in the app, either via the retailer’s official WeChat account or via the in-app web browser. This makes it easy for you to provide a seamless shopping and payment experience for WeChat users.

Hong Kong

Hong Kong is an important financial center in Asia Pacific – especially because of its proximity to mainland China, the world’s largest economy by purchasing power parity according to IMF.

Its high internet and smartphone adoption rates continually drive its ecommerce boom. Credit cards are the top payment method for ecommerce transactions, and are expected to remain the most popular payment method.

Mobile wallets are gaining traction among Hong Kong consumers. Both Alipay and WeChat Pay have announced their expansion plans outside of mainland China. Contactless and mobile payments are increasingly popular with more and more businesses adding Apple Pay and Google Pay to their payment mix.

Popular payment methods in Hong Kong

India

India has traditionally been a cash-dominated economy, with cash and cheques accounting for 85% of payments. And, while we expect strong electronic payments growth in India over the next three to five years, cash on delivery (COD) still accounts for 60% of ecommerce payments.

The growth of electronic payment is very much facilitated by the Indian government, thanks to initiatives such as Rupay and UPI. Investments by global companies such as Alibaba, Softbank, Amazon and Google in mobile wallets solutions in the country will also help to push the needle.

Popular payment methods in India

American Express
Mastercard
Visa
Rupay
Diners
Discover
Netbanking
Wallets
paytm
UPI

Indonesia

With a 200 million population Indonesia is one of the largest, undeveloped market opportunities in Asia.

The bright outlook is driven by demographic trends. Less than 40% of the population is online, bank penetration is under a quarter, and the number of debit and credit cards issued is at only 15%. Like many developing economies, the shift online is happening through mobile, with over 90% of online users in Indonesia going online via their phone. But bear in mind: Cash on delivery is still the most popular payment method for retail goods.

Popular payment methods in Indonesia

Doku Wallet
Mastercard
Convenience Store
Visa
Online banking
ATM payments
Dana
GoPay
Ovo

Japan

Japan is the world’s third-biggest ecommerce market. It’s a cash-dominated market where cash on delivery is a popular payment method. Konbini allows customers to pay for online purchases in 24/7 convenience stores. Local credit card JCB is also popular, as are international credit cards.

Popular payment methods in Japan

Malaysia

Like Indonesia, Malaysia is enjoying rapid ecommerce growth, driven largely by mobile. Yet there are some significant differences between the two markets. Malaysian shoppers are comparatively open to cross-border shopping, with 40% of online transactions happening cross-border. And, among Southeast Asian markets, Malaysia is second only to Singapore in terms of credit card penetration and usage.

The growing use of mobile devices may speed Malaysia’s ecommerce growth, as mobile payments can be made from a prepaid wallet instead of a bank account.

Popular payment methods in Malaysia

Ewallets
Mastercard
Visa
Online banking
GrabPay
7 Eleven Malaysia
RazerGold
BoostWallet

The Philippines

The Philippines is probably one of the most underestimated ecommerce markets in Southeast Asia. As the second most populous country after Indonesia, its ecommerce market can expect an annual growth rate of 101.4%. This is driven mainly by high mobile penetration. Filipinos are among the most prolific mobile users in the world, and smartphone penetration is now 30% of the population.

Popular payment methods in the Philippines

Singapore

A vital financial hub for global businesses, Singapore was recently ranked as the third largest financial center in the world, after London and New York.

Fintech, digital payments and blockchain technology are gaining traction as continuous innovation and tech growth remain key for Singapore’s economic development.

Despite its small size, the city-state’s extremely business-friendly environment and many international ties make Singapore a strategic center for businesses expanding in Asia and globally.

Like both Australia and Hong Kong, ecommerce in Singapore is thriving and 55% of transactions are cross-border. Smartphone adoption is about 90% and mobile commerce continues to grow as shoppers become accustomed to buying on their mobile devices.

In Singapore, credit cards are the top payment methods, followed closely by bank transfers and NETS payments. Contactless and ewallet payments like Apple Pay and Google Pay are also picking up pace.

Popular payment methods in Singapore

Visa
Mastercard
American Express
Wallets
Bank transfer
GrabPay

South Korea

South Korea is the third-largest retail ecommerce market in Asia Pacific after China and Japan. It has the highest credit card penetration in the world, and the average South Korean shopper has five credit cards, compared to two in the US. 80% of the population owns a smartphone and 44% uses it for shopping.

Payment methods used in South Korea

Visa
Mastercard
KakaoPay
Bank transfer
Local cards

Thailand

Thailand has huge ecommerce growth potential. Online retail transactions currently account for as little as 0.5% of the industry, but it’s growing by an estimated 30-35% annually. With internet penetration estimated at 60% and mobile the primary access device for most new shoppers, mcommerce is key.

Popular payment methods in Thailand