Top Payment Methods in the Asia Pacific Region

Payment methods in China

As the world's largest e-Commerce market, China accounted for USD 2.3 trillion of global online transactions in 2022. Despite amounting to over three times the turnover of the US market, there is still plenty of room for expansion. Projections estimate that the Chinese market will continue its strong growth trend, with a CAGR of 8.7%, helping the country’s e-Commerce sector reach a value of USD 3.2 trillion by 2026.

Despite the relatively low numbers of payment card penetration, high volumes of smartphone usage among Chinese consumers, paired with the popularity of mobile-based payment platforms — such as WeChat — ensure high volumes of mobile e-Commerce sales. Composing just over USD 1 trillion or 52% of total e-Commerce sales in 2019, Chinese mobile commerce had reached USD 2.2 trillion by 2021.

The most preferred online payment methods in China are Alipay, WeChat Pay, and UnionPay. Credit card penetration in China remains slow, though it is predicted to grow from its 2014 figure of just 16% to 44% by 2025. UnionPay, also known as China UnionPay or CUP, is a major card scheme in mainland China.

Instead of credit and debit cards, over 400 million users prefer to rely on alternative payment platforms. Mobile-based solutions are hugely online payment methods in China. The market is divided between Alipay, China's most popular third-party online payment service (enjoying a 54% share), and WeChat Pay, the mobile payment and digital wallet service (with a 40% share).

The popularity of mobile applications within the Chinese market is due in no small part to their ability to combine social interaction, financial tracking, and relevant advertising. Mobile applications also allow for easy payments within a single ecosystem.

Alipay

Alipay is an online payment method in China developed by the multinational technology company known as the Alibaba Group. Alipay is a digital wallet allowing customers to conduct transactions directly from their mobile devices and covers more than half of all online transactions in China. The service is the most popular online payment platform in the region and is supported by Chinese national banks with multiple currencies available.

To learn more about Alipay features and benefits, click here.

WeChat Pay

WeChat Pay is the fastest-growing Chinese payment method and forms part of the WeChat ecosystem — an all-in-one social network, work collaboration tool, and commerce platform. 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.

Learn more about WeChat Pay here.

UnionPay

UnionPay is the national bank card association in China and one of the world's largest and fastest-growing card payment organisations. As well as offering mobile and online payments, UnionPay is the only interbank network in China linking all the ATMs throughout the country and the EFTPOS network.

Learn more about China UnionPay.

Although the Southeast Asian digital payment landscape is still developing, reports suggest that the internet economy will be worth around USD 200 billion by 2025. With a growing middle class and a strong base of young, tech-savvy smartphone users comfortable with digital wallets and online payment platforms, Southeast Asia is on the cusp of an e-Commerce transformation.

According to one report, 49% of urban consumers already use e-wallets in their everyday lives, but this number could potentially hit 84% by 2025.

Indonesia

Indonesia's eCommerce market is booming and expected to show an annual growth rate (2021-2025) of 10.21%, resulting in a projected market volume of USD 56 billion by 2025.

Around half of all Indonesians still lack a bank account, so cash payments are crucial. Cards are slowly gaining popularity, though more traditional payment methods, such as online banking, bank transfers, and over-the-counter payments, are preferred payment methods in Indonesia. Krung Thai Bank, Bank of Ayudhya, United Overseas Bank, Bank Central Asia, Rakyat, Bank Mandiri, and Bank Negara are the most popular banks in the country.

With over 95% of Indonesia's 281 million population already using alternative payment methods, accepting local payment methods is a must to reach a critical mass of the country's consumers.

OVO

Over 110 million people are already using OVO's e-Wallet in Indonesia, allowing users to make goods payments and access cash at over 60,000 retail outlets. OVO's Premiere tier also allows free transfers between users and enables a balance of IDR 10,000,000 to be held in the e-Wallet.

Doku

DOKU is one of the most popular electronic payment methods in Indonesia, with over 2.5 million registered e-Wallet users, and this number is only growing among millennials. Connecting DOKU allows you to unlock various payment options: Virtual Accounts, bank transfers, eWallets, and payments at convenience stores.

Learn more about accepting DOKU payments here.

Virtual Accounts

Virtual Accounts are a popular local payment method in Indonesia that allows customers to pay from ATMs, Internet banking or mobile banking using a unique 16-digit payment code. Virtual accounts are similar to bank account numbers but do not expose users' bank account information.

Over-the-counter payments in supermarkets

Cash transactions in supermarkets and convenience stores remain one of the most popular payment methods in Indonesia due to the high proportion of the unbanked population and relatively slow credit card adoption. Indomaret and Alfamart, two of the largest convenience store chains with 30,000 outlets nationwide, are popular places to purchase goods online using cash.

The Philippines

The payments landscape in the Philippines is diverse, and cash payments are widespread, primarily due to low finance inclusion. In 2019, 29% of the population had a personal or jointly-owned bank account; after COVID-19, that figure jumped to 56%. However, making accurate predictions for further uptake in the future remains difficult.

e-Wallets, such as the local GCash or Smart Money, are present on the market but do not account for a significant portion of the local population.

Although there is a possibility that the popularity of smartphones will help locals to embrace technological innovation and boost the usage of e-Wallets in the future, the most popular payment method in the Philippines is online banking. Banks such as Banco de Oro, Metrobank, Bank of the Philippine Islands (BPI), Unionbank, and Asia United Bank (AUB) are not only popular for online payments but also for their recently improved online banking apps.

GrabPay

GrabPay is one of the most popular alternative payment methods in the Philippines. It is a mobile e-Wallet used for cashless purchases. Local consumers use GrabPay to pay bills and transfer money to local bank accounts or other GrabPay e-Wallets.

Learn more about connecting GrabPay here.

GCash

GCash is a popular payment method in the Philippines, too. The mobile e-Wallet is widely used by customers to send or receive money, pay bills and shop online.

Learn more about connecting GCash method here.

Coins.ph

Coins.ph mobile app provides consumers with direct access to banking and digital payment services, including local and international remittances, mobile air-time, bill payments, game credits, and online shopping.

Learn more about connecting Coins.ph here.

Cash payments in banks

Cash payments in banks are another popular payment method in the Philippines. Users can pay at the counters of the following banks: Banco de Oro, Chinabank, EastWest, Landbank, Metrobank, PNB, RCBC, Robinsons Bank, RCBC, Security Bank, UCPB and Unionbank.

Learn more here.

Convenience stores

Cash payments in convenience stores are one of the most popular payment methods in the Philippines. With Ecommpay's integration, customers can pay at the counters of the following stores: 7-Eleven, Bayad Center, Cebuana Lhuillier, ECPay, LBC, M. Lhuillier, Robinsons Department Store, RuralNet, SM Supermarket.

Learn more about this method here.

Vietnam

The Vietnamese economy is highly dependent on cash, with almost 90% of all transactions in the country paid for in cash. However, the Vietnamese government has launched several initiatives to combat low banking penetration, and as of 2022, 60% of adults now have a bank account.

These initiatives promise to positively affect e-Commerce, which is expected to reach USD 13 billion in sales during 2023. Vietnam has also improved its local regulatory environment and transport infrastructure, helping the country to 8th place on the list of the world's leading emerging logistics markets in 2021 before dropping to 11th place behind Thailand in 2022.

Online Banking

Online banking is one of the leading payment methods in Vietnam, with Vietcombank, Vietinbank, Bank for Investment and Development of Vietnam, Asia Commercial Bank, Techcombank, and VPBank being the most popular service providers. Cards also occupy a portion of the market share, with nearly 107.7 million domestic bank cards and 25.3 million international bank cards in circulation — though with a low usage rate due to the lack of ATMs in rural areas, where 70% of the population live.

Ngan Luong

Ngân Lượng is a well-known e-Wallet and one of the more widespread alternative payment methods in Vietnam. Ngân Lượng is widely used among Vietnamese e-Commerce merchants to accept payments and make payouts.

VN Post

Ngân Lượng is a well-known e-Wallet and one of the more widespread alternative payment methods in Vietnam. Ngân Lượng is widely used among Vietnamese e-Commerce merchants to accept payments and make payouts.

Viettel Post

Ecommpay's integration enables merchants to accept cash payments made by customers at the counters of Viettel Post.

Thailand

Thailand has a relatively high banking penetration but lags behind in internet usage. While Thailand ranks 45th in the World Bank's Logistics Performance Index, the country's Business Regulation Level is comparably high, taking 26th place. The local e-Commerce market's value amounted to USD 3.56 billion in 2017 and is projected to increase significantly, reaching USD 20.44 billion during 2023.

Online Banking

Thai consumers — 94% of whom have a bank account — rely on conventional payment methods, such as online banking. The most popular service providers are Bangkok Bank, Kasikorn Bank, Siam Commercial Bank, Krungthai Bank, TMB Bank, Bank of Ayudhya, and CIMB Bank.

Learn more about online banking.

Card payments

Despite the popularity of cash payments, cards and e-Wallets are also used as payment methods in Thailand. There are nearly 80 million bank cards in circulation in Thailand, and 75% are bank debit cards. Mobile phone operators also provide their own e-Wallets (akin to SMART Money in the Philippines), an example of which is True Money — a product of a mobile telecommunications operator TrueMove.

Convenience stores

One of the most popular payment methods in Thailand is cash transactions in convenience stores. Ecommpay's integration enables payments at The Big C supermarket chain, allowing customers to pay online utility bills in cash at its stores.

Malaysia

With an e-Commerce sector projected to reach sales volumes of USD 10 billion by 2023, Malaysia enjoys high internet and banking penetration rates despite having a smaller population. The country enjoys a high quality of business regulation and is ranked 24th in the World Bank's Doing Business scale, between Iceland and Mauritius. In 2024, e-Commerce sales are projected to amount to USD 8.1 billion, with growth steadily increasing over the coming years.

Credit and debit cards are very popular payment methods in Malaysia. Though only 23% of the population owned a debit card back in 2011, that figure had climbed to 74% by 2018, and consumers now view them as a safe and convenient way to pay for goods and services.

Online banking in Malaysia

Malaysian consumers usually own several credit and debit cards. Online banking has also significantly impacted the local payments landscape, with banks like Hong Leong, Maybank, CIMB, RHB Bank, and Public Bank Berhad offering an online option.

Boost

Boost is an e-Wallet and secure cashless payment system in Malaysia. 8.8 million users use the platform to purchase goods online, pay bills, buy tickets, pay transport services, order food, and top up balances.

MCash

MCash is a digital wallet service provider with more than 500,000 community members utilising its micro-payment services.

Japan

Japan has high internet, online banking, and card penetration rates. e-Commerce is also very popular among local consumers.

In 2019, 38% of purchases were made online, and total e-Commerce sales are projected to pass USD 175 billion during 2023. Additionally, Japan is ranked relatively high in the World Bank's Logistics Performance Index (#5 in 2019), reflecting high levels of trade and transport infrastructure and efficient logistics services.

When it comes to payment methods in Japan, statistics show that 98% of the population have a bank account, 87% own a debit card, and 68% own a credit card. Besides the ever-popular Visa and Mastercard, businesses looking to work in Japan should consider offering the domestic card brand JCB — a particularly convenient option for foreign companies looking to tap into the country's large consumer base.

Other than cards, Japanese consumers pay for goods and services using online banking, payment cards, or cash via convenience stores. For example, by checking out with Konbini, a popular payment system in Japan, consumers can pay at stores, including 7-Eleven, throughout the country.

Konbini

After traditional debit and credit cards, Konbini (“convenience store” in Japanese) is the second-most-popular online payment method in Japan, and is used for approximately 10% of all purchases. Convenience store payments are very popular in Japan, with locals paying for online orders, phone bills, and much more using this method.

JCB

JCB is a leading credit card issuer and acquirer in Japan, with over 34 million merchants accepting the payment method. JCB is now also a major global payment brand outside the Japanese market, with over 140 million cards issued across 24 countries.

Resources and expertise to support your business in Asia Pacific

With a population of over 4.5 billion, the Asia-Pacific region is home to nearly 60% of the global population. Although e-Commerce growth in APAC has been rapid in recent years, the region's sheer size makes the local payment landscape diverse and relatively fragmented.

Ecommpay has trusted relationships with local partners and experts in Europe and Asia, helping global businesses to take advantage of a dynamic market brimming with e-Commerce potential.

Frequently Asked Questions

What are the most popular payment methods in Asia Pacific?

The Asia Pacific payment landscape is diverse and fragmented. Credit and debit cards are popular, and e-Wallet use continues to rise as smartphone penetration increases. Although bank account use has increased exponentially over the last five years, cash is still one of the most prevalent payment methods in Asia, with many people paying for digital goods at local convenience stores.

How can I expand my business across multiple Asia Pacific countries?

Ecommpay’s Gate2Asia covers all of your payment needs, whether you’re selling in Indonesia, Malaysia, Singapore, or Thailand. Our simple payment solution allows businesses to efficiently expand into key APAC regions using a single agreement and integration for reduced time-to-market, with no need for extra development as new payment methods in Asia become available.

Will my business need local incorporation and bank accounts?

Using Ecommpay’s Gate2Asia, EU and UK businesses won’t need local incorporation or bank accounts. As a European payment provider with local partners and experts in Asia, Ecommpay handles all financial reconciliation, with merchants receiving simple weekly settlements.

Gate2Asia is a unified solution allowing businesses to make transactions between local accounts without relying on regional banks or incurring the high costs and long wait times of working with multiple PSPs.