After two difficult years of coping with the Covid-19 pandemic and its economic repercussions, Southeast Asia’s digital economy is prospering, providing the world with many cutting-edge inventions and solutions. The pandemic has accelerated the adoption of breakthrough digital technologies that create prospects for the event of society and the economy.
Southeast Asia’s digital economy will exceed $300 billion by 2026, in line with a brand new report commissioned by leading payments platform 2C2P and the Merchant Risk Council (MRC), a worldwide nonprofit membership organization offering e-commerce fraud prevention programs. risk management and payment optimization.
Six ASEAN members, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, participated within the study “How Southeast Asia Buys and Pays: New Opportunities, Connectivity and Risks”. The aim of the study was to discover emerging opportunities, threats and vulnerabilities in the world.
Southeast Asia’s rapidly growing digital economy is being driven by a variety of drivers, including the rise of the sharing economy and e-commerce, the region’s openness, the rise of online travel, using digital services, and more.
The ASEAN digital economy is predicted to grow at a rate of 17.1% from 2021 to 2026, outpacing the expansion rates of China (12.7%), Europe (10.2%) and the United States (7.2%). Digital spending per person will increase by 109% from 2021 to 2026, from $128 to $455. Digital payments will increase from 80% in 2020 to 92% in 2026, leading to a 121% increase in spending on the digital economy by this yr.
By 2026, consumer payments in Southeast Asia are expected to account for 14% of gross merchandise value (GMV) within the digital economy, a rise of 133% in comparison with 2021. Domestic payments will grow by 296%.
In 2026, card payments will dominate, accounting for 93.9% of the market, followed by domestic payments (89.5%) and mobile e-wallets (88.3%). With alternative payments as much as 25%, the Buy Now Pay Later (BNPL) payment mechanism shall be 17%.
These numbers show that ASEAN is now open for business, and startups should get thinking about how they’ll expand their operations to other regional countries, optimize their potential and adopt comprehensive payment solutions to strengthen their businesses.
With a young, tech-savvy population, growing 5G infrastructure and digital payment capabilities, Southeast Asia has all of the makings of a successful market.
Source: TechCollectiveSEA.com
