In Southeast Asia, digital consumption has taken root as a lifestyle. Many consumers within the region have used e-commerce to buy goods and services amid Covid-19 restrictions through the pandemic.
As the mobile-first region has embraced digital payment methods, it has unwittingly contributed to the rise in the usage of digital financial services. E-commerce and digital financial services have gained importance and are expected to proceed to draw additional funding.
With the growing popularity of consumer financing options and the growing demand for supply chain financing inadvertently making its way into e-wallets and digital payment systems, there are a lot of opportunities for digital lending expansion. Digital payments are expected to account for 91% of all e-commerce spending by 2025, up from 8% in 2020.
According to Bain & Co’s evaluation titled ‘e-Conomy SEA 2021, Roaring 20s: The SEA Digital Decade’, eight in 10 retailers expect greater than half of their sales to be made online in the following five years.
Food delivery and digital financial services are driving seismic shifts in consumer and retailer behavior within the region, meaning the region’s online economy could exceed $1 trillion in gross merchandise volume by 2030.
- E-commerce continues to drive the economy.
E-commerce could account for greater than two-thirds of GMV in 2030 as online shopping becomes the norm for consumers of all ages in each urban and rural areas.
- The emergence of the food market on the Internet
If penetration reaches 10-20%, e-grocery could expand to the size of your complete e-commerce business ($50-100 billion GMV).
- Transport and food, in addition to online media, will likely be key to unleashing the following wave of growth.
If penetration and share of wallet proceed to grow in underserved categories equivalent to non-urban areas, these two sectors could achieve the identical level of contribution as e-commerce today.
Travel and transportation, food delivery, over-the-top streaming services, and financial management equivalent to investing and insurance are sectors where digital financial services will play a big role.
As the market becomes increasingly saturated with payment options for consumers to pick from, e-wallet and digital payment providers face an uphill battle. The latest innovation is “buy now, pay later” services, which have gotten increasingly more popular in the world.
As we move towards a future dominated by e-wallets and digital payment solutions, the next comparative measures are presented for chosen countries within the region.
Source: Theedgemarkets.com
