Reach your customers worldwide.

Asia Pacific is home to over 4 billion people (60% of the world’s population) and some of the most exciting growth economies.

It is also the most diverse regions in terms of payments. But don't let that deter you. In many cases it is possible to tap into this enormous market potential with relatively high speed and little investment. 

Australia, China, Indonesia, and the Philippines for example, do not require local entities to start selling. So, with the right payments solution, connecting with shoppers in these markets can be pretty easy.

Asia Pacific

Australia

Australia

In Australia, digital buyer penetration is among the highest in Asia Pacific, and cross-border ecommerce already accounts a significant chunk (36%) of online retail purchases made by Australian consumers.

Inside tip

With no requirements to set up a local entity, a card-dominated payment culture, and a population already used to buying from international businesses, Australia represents a relatively easy market to enter for global businesses.

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China

China

China is the biggest ecommerce market in the world, and Chinese online shoppers are overwhelmingly young and located in major cities. A majority (70%) of shoppers in the market have completed a purchase using their smartphone.

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

  • UnionPay is the only interbank network in the market, and is the largest card scheme in the world by number of cards issued. This makes, UnionPay a vital part of the payments mix, although it is worth noting that, for some business types, UnionPay transaction volume may vary.

  • Alipay is the largest single payment platform in the market, with around 48% share and a bigger slice of the fast growing mobile pie. Its dominance is due to its web properties (Taobao in particular, which is the Chinese equivalent of eBay).

  • WeChat Pay is rapidly becoming a keystone payment method for businesses wanting to reach Chinese shoppers, both home and abroad. 

Inside tip

It is not a requirement to set up a local entity in China. This means that with a payments solution that supports the key local payment methods mentioned above, China is a relatively straightforward market to enter in terms of payments.

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Hong Kong

Hong Kong

Credit cards are expected to remain as the most popular payment method, and China UnionPay is growing in popularity. No local entity is required for cross-border transactions, and it is easy to accept payments in the domestic currency and settle in the same currency with no impact on currency conversion.

India

India

Traditionally a market with low credit card market share, non-cash transactions are rapidly growing in popularity in India. Additionally online banking, debit cards, and prepaid cards are experiencing increasing popularity. However, it should be noted that while our data focusses on digital payment methods, cash on delivery is still the predominant payment method for online purchases.

Inside tip

India is one of the few markets in which introducing 3D Secure at the checkout stage actually has a positive impact on authorization rates. In fact 3D Secure is mandatory on all domestic transactions. Therefore, businesses should apply 3D Secure to cross-border transactions for the Indian market.

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Indonesia

Indonesia

Indonesia is the giant of Southeast Asia and currently undergoing an ecommerce revolution. With 60% of the online population accessing the Internet through smartphones, it is no wonder that significant growth can be seen in mobile payments and e-wallets.

Inside tip

In Indonesia a local entity is not required to offer local payment methods. However, for Visa and MasterCard acceptance, it is required. Since the majority of transactions are made with local payment methods, with smartphones the preferred way to go online, businesses are advised to consider implementing a payments strategy with these two factors in mind.

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Japan

Japan

Japan is the world’s fourth-biggest ecommerce market, and although dominated by cards, a popular way to pay there is via Konbini, which allows for online payments to be completed offline in 24/7 convenience stores.

Inside tip

Japan is one of the few markets worldwide where cross-border acquiring on a like-for-like basis is actually more cost effective than the domestic acquiring rate, meaning a cross-border approach is advised for international credit cards.

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Malaysia

Malaysia

With cross-border purchases accounting for 40% of all ecommerce transactions, Malaysian shoppers are very open to making purchases from international websites. Because online banking is so popular in Malaysia, shoppers are used to being redirected to their online banking environment when making a purchase, which has implications for recurring and one-click payments.

Inside tip

While a domestic entity is not required for international credit cards, it is important to note that it is required to access domestic payment methods, which account for a significant percentage of online transactions.

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New Zealand

New Zealand

Online shopping is very much the mainstream in New Zealand. In 2015, Neilsen Research reveals that almost 2 million shoppers purchased online, spending about $3 billion in total. Travel is the most popular online purchase, followed by clothes and entertainment.

The Philippines

The Philippines

Mobile payments are growing quickly in the Philippines, with methods such as SMART Money and Globe GCash among the leaders. As with a number of other APAC markets, retailers should bear in mind that cash on delivery is dominant for retail goods.

Inside tip

A local entity is not required for the Philippines, and as with other emerging economies, a mobile-first strategy will help in connecting with the critical mass of Filipino shoppers.

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Singapore

Singapore

Despite being the smallest country in both size and population, Singapore is considered to be the financial hub of Southeast Asia.

South Korea

South Korea

South Korea is the third-largest retail ecommerce market in Asia Pacific (after China and Japan). The average South Korean shopper holds an average of four credit cards, and around 80% of online transactions are card-based.

Inside tip

Most local cards are co-branded with Visa and MasterCard, and require a market-specific authentication process – which only works in Internet Explorer – in order to be approved. While this authentication process will likely no longer be mandatory in the near future, it will still be widely used for some time, and merchants entering the market should therefore keep it in mind when formulating a payments strategy.

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Thailand

Thailand

With Internet penetration at under 50%, Thailand is one of the big growth markets for ecommerce in the years to come. Credit cards are a popular online payment method in Thailand, with shoppers in urban centers possessing multiple cards. Various prepaid cards are also in the market as well co-branded credit cards, but local payment methods remain wide-spread.

Inside tip

Among local payment methods, in-store payments, where the shopper receives a barcode via email and pays in a physical location, remain a popular choice. Adyen supports 123, a key over- the-counter payment method in the market.

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