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The most popular payment methods in Asia by countries

The most popular payment methods in Asia by countries

Thanks to the rapid growth of eCommerce, Asia became an attractive market to invest in. However, the payment methods of Asian regions differ from what Europeans and North Americans are used to. From India to Korea, this article provides international sellers with overall data on Asian e-commerce and gives a full list of the most popular payment methods in Asia by countries. 

The current state of eCommerce in Asia

China is the largest eCommerce market in the world. In 2019, the country’s annual revenue has already reached the point of €871 billion and continues to grow. Economists suggest that by 2020, China’s market will overstep the USA, Japan, the UK, Germany, and France combined. Moreover, the recent KPMG survey revealed that 77% of Chinese customers reported that online shopping is their favorite leisure activity. 

The Indian market should not be underestimated as well. The country’s eCommerce is expected to grow from $38.5 billion in 2017 to $200 billion by 2026. The annual rate of Indian e-commerce revenue growth is 51%

Speaking about Indonesia, Malaysia, Philippines, Singapore, Thailand, or Vietnam, we can also observe a continuous growth.

The easiest way to penetrate the Asian market is to use Asia-based marketplaces. They are the first gateways to consider. Doesn’t matter what approach you choose, selling via e-platforms or your website, Ikajo International is here to provide you with a payment gateway.

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5 leading eCommerce platforms in Asia

Here is a list of five most popular e-commerce platforms in Asia:

  • Tmall Global. This is the online marketplace (one of the Alibaba group) which covers over 80% of the market in China. The famous brands like Zara, Burberry, and Disney are already offering their products there. Check out what are the most popular payment methods in Europe by countries to learn more about this region’s eCommerce trends. 
  • Lazada. The marketplace has 50B users per month. Moreover, it requires no monthly or listing fees, which makes it even more favorable for sellers. Joining Lazanda is a proven way to reach out to consumers from Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
  • Flipkart. Just like Amazon, Flipkart started as a bookseller and then grown into a large e-commerce platform. As for today, it owns 46% of Indian e-commerce shares. 
  • Rakuten.The platform was founded in 1997 in Japan and is now one of the biggest e-commerce platforms in the world. As for today, 80% of the Japanese population buy from Rakuten.
  • Coupang.The platform gains about $2B in sales annually. According to the research, 2 out of 5 Koreans are Coupang users. 

What products do Asian customers buy the most?

Thanks to global trends, the majority of Asian citizens express a growing interest in Western products. What’s good to know for sellers is that it is cheaper for Asians to buy western products from crowdfunding platforms than from the local stores. In 2019, Asian consumers continue to flock to the following Western products:

  1. Technology. Though Apple is the most popular brand among Asians, other products remain successful. From phones to wearable tech, opportunities are unlimited.
  2. Beauty products. Beauty eCommerce is a proven gateway to an Asian gen-Z and millennials market. While Korea already takes a massive part of the market, there is still room for European and North American suppliers. 
  3. Baby formula. Over half of Chinese parents reported buying foreign baby formula. The number of tragic accidents caused by a local product is to blame. 
  4. Homeware. About 70% of Chinese millennials own their own houses. Such a percentage is twice the number reported by UK and US young adults. No wonder that shipping homeware to Asia is a good investment for international merchants. 
  5. Nutraceuticals. Foreign health supplements are trendy in Asian countries. The majority of merchants are afraid to sell NUTRA. Thus, we’ve decided to help them get started and created a guide on how to open a merchant account to sell nutraceuticals.

orange and blue sedan on gray concrete road

The most popular payment methods in Asia by countries

Here is a list of the most common payment methods in Asian region.

China

As mentioned above, China is the most consuming country in the Asian region. From tech to beauty products, Chinese citizens flock to western products. 

  • AliPay
  • WeChat
  • UnionPay

India

The Indian eCommerce is gaining momentum. The best option to start selling is to join the Flipkart. Besides being the most popular in India, the platform also has free shipping to the villages and cities, which makes it easier for merchants to reach out to a large part of the population.

  • Visa
  • Mastercard
  • Online Banking
  • American Express

Indonesia

As for today, there are 260 million digital users in Indonesia. They primarily access the internet through mobile devices. Thus, consider in-app payments when trying to reach the country’s consumers. 

  • ATM payments 
  • Online Banking
  • Visa
  • Mastercard
  • Doku wallet

people rowing boat

Japan

In Japan, almost 74% of the population is shopping online. Market growth is expected to be steady for the foreseeable future.

  • Visa
  • Mastercard
  • JCB
  • Konbini
  • American Express

Malaysia

Thanks to digital tech adoption and well-developed infrastructure, Malaysia is an attractive market for eCommerce. It now has 25.84 million active internet users (80% out of the total population).

  • Mastercard
  • Online banking
  • Visa

The Philippines

The Philippines are expected to strengthen their eCommerce in the future. However, the country’s digital adoption remains at a deficient level today. Nearly 98% of the population didn’t have credit cards in 2018.

  • Mastercard
  • Visa
  • Bank Transfer
  • GCash

Singapore

Singapore is one of the most tech-savvy nations world. The eCommerce market volume is expected to grow up to $8.64 billion by 2023

  • Mastercard
  • Visa

South Korea

South Korea is the win-win ticket for the European and North American merchants. The most popular foreign-sourced products from online retailers by Koreans in 2018 are dietary supplements, apparel, electronics, footwear, handbags, food, and cosmetics.

  • Korean Cards
  • Visa
  • Bank Transfer
  • Mastercard

Thailand

The eCommerce market in Thailand is currently the second-largest in Southeast Asia and is expected to grow around 22% annually by 2020.  

  • Online Banking
  • Visa
  • Convenience stores in Thailand
  • Mastercard

Vietnam

Vietnam’s thriving eCommerce market consists of 35.4 million users and has already brought in $2,709 million in 2019. The country has 59.2 million internet users.

  • Mint
  • Visa
  • Moblamo
  • VTC Pay

 Summary

The time is ripe to penetrate the Asian market. As for 2019, Singapore, India, China, and Japan are the most profitable markets to invest in. There are popular marketplaces you can use to start selling quickly. While choosing a PSP, make sure that not only they have Visa and Mastercard but also the local payment methods that differ from the country. Reach us out in case you have any questions or are willing to start selling in Asia

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